Araqi noted that Iran sits on some of the world’s largest oil and gas reserves. With such vast resources, the development of the oil and gas industry is a key driver of progress.

He emphasized that production efficiency—not just the volume of reserves—is the most critical factor. "It doesn’t matter how much oil and gas we have in the country; what matters is how much we can produce," he said.

Araqi pointed out that sanctions and financial constraints in recent years have hindered the development of Iran’s oil and gas fields, allowing neighboring countries to more easily exploit shared fields. Another major issue, he said, is that oil revenues are being spent on current expenditures rather than reinvested in further field development and essential infrastructure.

 Management, capital and technology: Three pillars of energy sector development 

Araqi stressed that sanctions and lack of access to modern technology increase the cost and time required to bring upstream fields—which demand advanced technology—into production, dealing a heavy blow to the country. He also warned that insufficient funding leads to the loss of skilled professionals.

"Management, capital and technology are the three pillars of Iran’s energy sector development," he said. "Without any one of these, progress in the oil and gas industry is impossible." 

 Using foreign financing alongside domestic resources for oil industry development 

Last year, Iran faced severe gas shortages due to high consumption, particularly in power plants, Araqi said. Switching from gas to solar energy for electricity generation could help balance supply and demand.

He emphasized the need for investment in electricity production alongside consumption optimization. Although laws mandate development in this sector, implementation and planning remain lacking.

Araqi added that the National Development Fund and bank loans alone cannot support private sector growth. To make the investment climate more attractive, foreign financing is essential—but this requires improved international relations and diplomatic engagement.