Global oil prices will double to more than $250 a barrel if Western economies impose a ban on Iranian oil exports, warned an Iranian government official on Sunday.
“Imposing sanctions on oil and gas is among the sanctions that, if one wants to do that, the consequences should be fully considered before taking any action,” said Iran’s Foreign Ministry spokesman Ramin Mehmanparast in a local newspaper interview as cited by Reuters.
Iran has a diverse range of industries, however the primary focus remains the oil and petroleum industry which represents 60 percent of the government’s budget. Iran is also the 3rd largest producer of natural gas in the world, generating more than 200 billion cubic metres of natural gas in 2010 alone. The emergence of Iran’s natural gas industry could decrease the country’s dependence on oil.
Iran is the world’s fourth largest producer of oil behind Russia, Saudi Arabia and the US – and currently possesses the third largest proven oil reserves in the world after Saudi Arabia and Canada. In 2010, Iran produced 4.172 million barrels of oil per day. At present, Iran possesses 10 percent of the world’s total oil reserves, estimated at 137.6 billion barrels. Oil and oil prices are intrinsically linked to Iran’s economic future.
The Islamic Republic of Iran is a transition economy that’s being gradually transformed, from a centrally planned economy to a free market. The evolution has been a slow and painful process, marked by inefficient state policies, poor management of resources and international conflicts and sanctions.
The Islamic Republic of Iran is located in the Middle East and Central Eurasia, sharing its borders with Azerbaijan, Armenia, Turkey, Iraq, Pakistan, Afghanistan and Turkmenistan. Iran’s borders also access four seas: the Caspian Sea in the north and the Persian Gulf, the Gulf of Oman and the Arabian Sea in the south.
Iran is a founding member of OPEC and GECF (Gas Exporting Countries Forum). The majority of Iran’s exports are oil and natural gas. In 2010, petroleum constituted 80 percent of all exports from Iran. Iran’s strategic geographical position ensures access to markets within the region. Pipeline systems supply Iran’s oil and natural gas to many of its neighbours such as Turkey and Armenia, and as far away as Russia and India.
Iran is a lower middle-income economies coming under the Middle East and the North African region as to the classification made by the World Bank on the basis of income and region for the year 2006.
The economic development policies in the country have gained a momentum in the recent years. Petroleum products in the country largely contributes to the economy. Iran is presently one among the largest oil producers of OPEC countries.
