A Primer on Iran's Oil and Gas Resources

According to Oil and Gas Journal, as of January 2009, Iran has an estimated 136.2 billion barrels of proven oil reserves, or roughly 10 percent of the world's total proven petroleum. Iran has 40 producing fields, 27 onshore and 13 offshore, with the majority of crude oil reserves located in the southwestern Khuzestan region near the Iraqi border. Iran's crude oil is generally medium in sulfur content and in the 28°-35° API range. In 2007, Iran exported about 2.4 million bbl/d of oil, primarily to Asian and OECD Europe countries, making it the fourth largest exporter in the world.

Some brief energy stats Iran:

• Iran, one of OPEC’s founding members, holds the world’s third-largest proven oil reserves and the world’s second-largest natural gas reserves.
  
• Iran is OPEC’s second-largest oil producer and the fourth-largest crude oil exporter in the world.

Note the effects of war, revolution and mismanagement:


As well as oil Iran is a natural gas behemoth as well:




In addition the Iranian government subsidies fuel in the country to almost 11% of the nations GDP. For quick facts check here. It goes without saying that of all the nations on the planet they are hardly in need for civilian nuclear power. Its often said that refining is the achiles heel of Iran's oil sector, here are the facts:

Refining

Iran’s total refinery capacity in 2008 was about 1.5 million bbl/d, with its nine refineries operated by the National Iranian Oil Refining and Distribution Company (NIORDC), a NIOC subsidiary. Iranian refineries are unable to keep pace with domestic demand, but Iran plans to increase refining capacity to around 3 million bbl/d by 2012. This increase, through expansions at existing refineries as well as planned grass-root refinery construction, could eliminate the need for imports by 2012. In addition, Iran has discussed joint ventures in Asia, including China, Indonesia, Malaysia, and Singapore to expand refining capacity.

Gasoline

In 2007, Iran consumed around 400,000 bbl/d of gasoline, roughly the same amount as 2006. Iran does not currently have sufficient refining capacity to meets its domestic gasoline and other light fuel needs. However, according to FACTS Global Energy, government targets for domestic gasoline refinery projects combined with the elimination of gasoline subsidies by the official goal of 2011 could make Iran a gasoline exporter by 2012. The International Energy Agency predicts 5.3 percent demand growth in 2009.

The Rationing System

Currently, the majority of motorists are permitted a monthly ration of approximately 32 gallons of gasoline (120 liters), at approximately 37 cents per gallon (10 cents/liter; 1,000 rials/liter). Part-time taxis, commercial vehicles, and government vehicles have special allowances. The current rations are expected to be maintained through the June 2009 Iranian election.

Gasoline Imports
Iran spent approximately $6 billion on gasoline imports in 2007. Under the rationing system, implemented in June 2007, Iran’s gasoline imports declined from an estimated 204,000 bbl/d in May 2007, to an estimated average of 94,000 bbl/d for the remainder of 2007. Large, multinational wholesalers such as BP, Reliance, Total, Trafigura, and Vitol provide Iran with gasoline.