The Iranian oil industry, as one of the pillars of the country's economy, has undergone remarkable transformations over the more than four decades since the victory of the Islamic Revolution.

This industry has not only played a key role in the production and export of oil and gas but has also taken significant steps in advancing technology, achieving industrial independence, and meeting the country's energy needs.

However, alongside these achievements, there have been challenges and shortcomings that, if identified and addressed, can illuminate the path forward for this industry. In a series of interviews with a group of oil industry managers and experts, SHANA sought answers to two key questions:

1- What has been the most significant achievement of Iran's oil industry over the past 46 years?

2- What is the most important measure that has been neglected during these years?

The second part of the interviews with senior oil industry managers follows:

Javad Yarjani, Iran's National Representative to OPEC (2004-9): 

The oil industry has provided immense services to the country over the past 46 years. The truth is that if the strikes by oil industry workers had not occurred, the fate of the Islamic Revolution might have been uncertain.

Therefore, the role of the oil industry in the revolution's victory should not be forgotten. During the imposed war, despite suffering severe damages, the oil industry stood by the Iranian people. I remember how oil industry employees, such as the late Kazempour Ardabili, who served as Deputy oil minister for international and commercial affairs from 1985 to 1990, courageously exported crude oil and brought back the revenue to cover the country's expenses.

After the war, the oil industry not only bore the costs of its own reconstruction but also took on the responsibility of financing the country's overall damages.

None of this would have been possible without the dedication and passion of the industry's workforce. In my view, the greatest achievement of the oil industry over the past 46 years has been the reconstruction of its facilities and financing the reconstruction of the country.

The perseverance and sacrifices of the industry's employees over these years could fill days of discussion. Today, it is easy to sit and talk about those times, but we must not forget how the men and women of the oil industry, under harsh geographical conditions, produced and exported every barrel of oil with their hearts and souls, despite the shadows of war and sanctions.

Another achievement was reaching a production level of 4.2 million barrels per day, thanks to the dedication and capabilities of the oil industry workforce.

However, unfortunately, due to various reasons, we were unable to maintain and increase oil production in line with the 20-Year Vision Plan, which would have allowed us to convert its revenues into wealth for future generations. Additionally, long-term investments have been neglected due to sanctions.

Mohammad-Hassan Peyvandi, Deputy CEO of the National Petrochemical Company (2013-16): 

The development of Iran's oil industry over these years, despite numerous ups and downs including the imposed war and sanctions, has not halted. The dedication and sacrifices of oil industry employees during the war and the reconstruction of facilities, alongside supplying fuel for other sectors, are undeniable.

Even under harsh sanctions, the industry did not cease its efforts and ensured the country's economic security. Meanwhile, the petrochemical industry has now reached a nominal capacity of over 96 million tons. Undoubtedly, this development, with an annual income of around $17 billion—excluding the value added in downstream industries—has played an undeniable role in job creation, revenue generation, and the development of the country's economy.

However, it is regrettable that there is little time left until 2025, the end of the 20-Year Vision Plan of the Islamic Republic of Iran, which began in 2005. According to this plan, we were supposed to achieve the top position in various fields, including the petrochemical industry, by next year.

This could have been possible if certain events had not occurred and if more support had been given to the 20-Year Vision Plan. Privatization was the first event that took place at the peak of the petrochemical industry's growth, diverting the necessary resources for implementing the 20-Year Vision Plan and its goals away from the National Petrochemical Company.

Unfortunately, true privatization did not occur, and the executive principles of Article 44 of the Constitution were not properly implemented. Most resources were transferred to pension funds through government debt and repayments.

Although this move was beneficial for the funds in terms of preserving resources against rising inflation, the funds prioritized paying heavy monthly salaries to a large population that had played a key role in generating these resources for years, leaving little or no resources for investment in the funds' holdings. Additionally, the monthly inflows to the funds gradually decreased due to privatization and reduced new hiring, while outflows increased due to a growing retired population.

In my opinion, privatization should have started after achieving the goals of the 20-Year Vision Plan, i.e., after 2025. Another issue was the initiation of cash subsidies with a majority of the population registering for them. The cumulative amount of these cash subsidies since their inception is significant, and if these resources had been invested and the shares and profits allocated to low-income groups, it would have had a substantial quantitative, qualitative, and equitable impact on the country.

In these years, factors such as the imposed war and sanctions were beyond our control, but with a dedicated and passionate population alongside rich oil and gas reserves, and after overcoming the enemy and enduring eight years of war while preserving the country's borders at the cost of the lives of our best youth and veterans, it is unacceptable to now face energy imbalances. No, it is unacceptable. Clearly, we have not acted correctly.

Mehdi Hosseini, former deputy minister of oil for international affairs (1998-2000): 

Iran's oil industry faced a very difficult period after the Islamic Revolution due to the lack of access to modern technologies from foreign companies, which were constantly being updated, as well as the imposed war. After the revolution, all contracts were canceled by the Revolutionary Council, creating significant challenges initially.

This led to billions of dollars in claims against us in international courts, including The Hague, and by American and European companies. However, at the same time, some individuals worked hard and managed to resolve all claims against Iran's oil industry through negotiation and diplomacy, without going to court. We did not incur costs to settle these claims; we only paid what we believed was fair and beneficial to us.

I once declared that the nationalization of the oil industry meant that the ownership of oil belongs to Iran, and no one has any claim to our oil. This became a reality the year we resolved those cases; before that, it was merely a claim of nationalization.

Although The Hague court ruled in favor of American companies, stating they had rights to part of Iran's underground oil, we still managed to resolve the issues, which was a significant achievement. After that, with the knowledge and experience gained, we realized that many actions and tasks could be accomplished.

The development of the oil and gas industry was achieved after this period. Despite sanctions and pressures, capable and skilled domestic forces, alongside oil contracts, attracted foreign investment and technology, and today we witness the presence of capable companies in the country's oil industry.

Therefore, while the initial conditions were very tough, historic and valuable actions were taken afterward, and if we discuss the numbers, you will see that significant work has been done in the country.

Mehdi Jamshidi-Dana, former CEO of Iranian Gas Transmission Company (2020-21): 

The development of South Pars using buyback contracts marked the most significant transformation in the oil industry post-revolution—a transformation that not only ensured energy security and welfare for the people but also contributed to the country's industrial development. However, over these 45 years, despite industrial development, no action has been taken to optimize fuel consumption, leading to energy imbalances in various sectors. Short-term and long-term solutions for optimizing fuel consumption, alongside increasing production, could significantly help address current challenges.

Moreover, optimal energy consumption, in addition to ensuring the country's energy security, especially during the cold season, could boost investor confidence in securing feedstock for industrial development projects.

Abdolhamid Delparish, former director of integrated planning at National Iranian Oil Company (2006-16): 

After the glorious Islamic Revolution, the oil industry achieved many milestones. The most significant of these was the development of the massive South Pars gas field, including gas refineries and large petrochemical complexes, which had a profound impact on the country's economy and was unprecedented in the 110-year history of Iran's oil industry.

However, perhaps the most important impact of the revolution on the oil industry was the strengthening of domestic capabilities and fostering a spirit of self-reliance on skilled human resources.

It is worth noting that the majority of South Pars’ development was carried out by domestic forces and experts. I should also mention that the expansion of the gas network and gas supply to all cities and villages in the country was a monumental achievement, unmatched even in countries like the United States.

However, since the prerequisite for this was the ability to produce and supply gas, I believe the development of South Pars stands out as a more prominent achievement.

On the other hand, the biggest weakness of the oil industry during this period has been the inefficiency of the country's macro-management in optimizing energy consumption. As a result, vast energy resources are wasted without proper economic value addition, and the country could have had a better position in the global energy economy.