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 fourth part of the interviews with senior oil industry managers follows:
Hojatollah Ghanimi-Fard, Director of International Affairs at NIOC (1991-2008) and Head of OPEC Petroleum Studies Department (2010-17):
The oil industry, as it pertains to oil, gas, petrochemicals, and refineries, is one of the most important industries in the country. It must be acknowledged that God has granted the country significant successes, and we have achieved major milestones in these areas.
Despite the damages caused by the imposed war and the challenges of sanctions, the country has managed to make notable progress in the upstream, midstream, and downstream sectors of oil and gas. For instance, if we compare gas production at the beginning of the revolution with the present, we see a significant increase. Additionally, the capacity for petrochemical production and oil and gas processing has grown remarkably over these years.
One of our greatest achievements has been the increase in oil and gas production after the imposed war and collaboration with international companies. These efforts have enabled us to surpass Qatar, our main competitor in shared fields, in the gas sector.
To maintain these achievements and ensure continued success, we need long-term and medium-term planning, leveraging past experiences and existing domestic capacities, as well as the support of friendly countries.
While some countries are reluctant to cooperate with Iran, there are still major international companies willing to engage in mutual cooperation if conditions are favorable.
Therefore, the achievements of the country's oil industry have been remarkable, and delving into statistical details might be beyond the scope of this discussion.
However, one area that has needed more attention over the years is the scientific aspect of the oil industry. Scientific institutions such as the Petroleum University of Iran and related research centers have immense potential that we could have utilized more effectively.
This does not mean that no activities have taken place in scientific and research fields, but it indicates that we need to elevate the country's scientific standing in the oil industry to a level where it is recognized not only domestically but also regionally and globally. In conclusion, while significant actions have been taken in this area, there are still many opportunities for progress in the scientific and research sectors of the oil industry.
Abbas Kazemi, CEO of NIORDC (2013-17):
The greatest achievement of the oil industry after the Islamic Revolution was ensuring the country's energy supply during the war. The Abadan Refinery, which supplied about 48% of the country's energy in 1980, was attacked by Iraqi forces during the Iran-Iraq war.
Despite this, we managed to maintain the country's energy supply even after the refinery was taken out of production, which is considered one of the oil industry's masterpieces.
The enemy's goal in attacking the Abadan Refinery was to force Iran into surrender, believing that Iran could not continue the war without it. However, the oil industry workers at the time resisted with all their might and, through increasing refining capacity and various measures, managed to sustain the country's energy supply despite all challenges.
This is one of the oil industry's greatest achievements in the 1980s, which has received less attention.
The creation and development of the gas network is another major achievement of the oil industry after the Islamic Revolution, as it was crucial for the stability of the country's energy network. Without this significant action, a large portion of the national wealth in crude oil would have been wasted, and Iran would not have been able to become one of the world's oil exporters.
Three refineries in Arak, Bandar Abbas, and the Persian Gulf Star were built after the Islamic Revolution despite challenges such as financial resource shortages, marking important milestones in the oil industry.
Additionally, the Abadan Refinery, which was under continuous bombardment by the Iraqi Ba'ath regime for eight years, was rebuilt and brought back into production. It is now the largest oil refinery in Iran.
Currently, the country's energy production is about eight times higher than before the revolution, and this eightfold increase in energy production, despite the eight-year war and ongoing sanctions, is a monumental effort achieved only through the dedication of the hardworking oil industry employees.
Energy efficiency and optimization are among the areas that have been neglected over the past 45 years, and effective measures for energy consumption optimization should be prioritized.
Mehran Amir-Moeini, CEO of NIGEC (2017-19):
The greatest achievement of the oil industry after the Islamic Revolution has been the transfer of oil-related activities and responsibilities in key sectors of the oil industry to Iranian experts.
The pressures of the unequal war with Iraq clearly demonstrated that relying on domestic expertise could lead to the growth and development of the oil industry.
Although relying on domestic expertise in the early years created opportunities in the oil industry, there was insufficient attention to improving the quality and skills of the workforce through management, organization, and training. As a result, employees faced shortages in managerial knowledge, technical expertise, and even organizational relationships.
Over the years, there has been little attention to improving the administrative, financial, and managerial structures of companies to make them more efficient. Companies have operated more like administrative offices or agents. In some cases, even the advice of foreign consultants was ignored due to conflicts of interest among senior managers.
Sobhan Karimi, CEO of Arvandan Oil and Gas Company (2003-13):
If we review the events and developments during the nationalization of Iran's oil industry, we see that at that time, we were under sanctions and lacked skilled domestic experts, making it practically impossible to manage the oil industry independently. Although after the Islamic Revolution, we faced many challenges with the main operators and companies active in Iran's oil industry before the revolution—primarily British and American—they did not provide us with the necessary resources for the industry's development. Nevertheless, with the efforts of domestic experts, the oil industry never came to a halt.
Therefore, the most prominent achievement of the oil industry during this period has been the training and development of domestic experts and specialists, enabling them to meet the country's needs in this field to a large extent. The same approach was taken in manufacturing equipment, and now over 75% of the equipment used in this industry is domestically produced.
On the other hand, the missing link after the revolution has been the lack of integration between the industry and universities and scientific centers. Given the technical nature of the oil industry, in all developed countries, this connection exists. Universities and industrial companies in these countries are so closely linked that they even meet each other's daily needs. However, in Iran, we have never seen the formation of such a relationship, and there has always been a significant gap between the industry and research centers.
As a result, despite the long history of the oil industry in Iran, none of the domestic institutions are active in issuing licenses or certifications approved by international standard organizations. If there are any such cases, they are very limited in scope. Until we succeed in this area, we will face numerous challenges and obstacles in exporting technical and engineering services to regional countries.
However, in recent years, good efforts have been made to support knowledge-based companies, which have yielded positive results in some cases. The Vice Presidency for Science and Technology, by forming a High Committee for Research and Technology with the focus on the Ministry of Oil, the Research and Technology Institute, and leading technical universities, can address the existing obstacles and lead to growth and a leap in this field, enabling us to become a license exporter and a recognized authority in certifying equipment manufacturing.
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