“Sitting atop great oil and gas reserves, Iran will play a vital role in supplying the world with energy in the future”,
former German chancellor Gerhard Schroeder says.
Iran has a membership with OPEC i.e. Organization of Petroleum Exporting Countries and has third largest proven oil reserves along with second largest
Natural Gas reserves. It is the forth largest oil producer in the world and OPEC’s second largest exporter following the Kingdom of Saudi Arabia. Iran fulfills half of its energy requirements from Natural Gas and depends on oil to fulfill the rest of demand.
Global energy calls for oil, coal and gas need to be fulfilled. Natural Gas comes after oil and coal in terms of share of the world energy market. Natural Gas alone accounts for 23% of the world’s energy demand. Iran being the second largest producer of Natural Gas becomes one of the key role players in meeting global energy requirements.
Iran has a thriving oil and gas sector that provides a great opportunity for foreign investment in Iran.
Germany has gotten a superior clutch of this prospect by holding secure ties with Iran in terms of international trade despite the imposition of western sanctions. Germany has stepped up efforts in recent years to branch out its energy sources in order to reduce its dependence on Russian oil and gas. Last year, Germany’s total exports to Iran surged to nearly 10% to reach around 4 billion euros. Despite participating in a number of Iran’s petrochemical projects, no German company has its active presence in Iran’s Oil and Gas sector.
Iran’s decision of what to produce and how much to produce, greatly impacts the Oil markets around the globe. Iran, if decides to cut down on the production can lead to shoot oil prices. Similarly, a decision to expand production will have an opposite effect.
As Iran’s oil minister quotes, “We are proceeding with the development of our Gas and Oil fields with the help of Chinese and Russian companies”, Iran’s Oil and Gas sector is fast growing with huge foreign investments from China and Russia who are exploring the lucrative Iranian Oil and Gas fields.
With oil prices recovering, signs of recession touching its bottom multiplied and hopes of stirred global energy demand are coming to life, there is no two opinions that Iran will keep playing a major role in meeting the worlds energy needs in a better way than before.