Tehran Times: Iran’s Future is More in Gas Than in Oil

Hossein Askari, a professor of international business, says Iran should focus more on gas export rather than oil as the country is gifted with huge reserves of gas and the world is also embracing gas and renewable energies.

Askari, who served as special advisor to Saudi finance minister from 1978 to 1981, said Iran cannot compete with Saudi Arabia in terms of oil exports even when the sanctions against the country are removed, noting that Iran’s oil industry is in need of large investment .

“If Iran is looking to boost revenues dramatically from oil sales, it will be disappointed.”

He said it is better that Iran “look more towards natural gas and developing its non-energy exports.”

“Iran’s future (and its sales to Europe) is more in gas than in oil,” Askari said in an exclusive interview with the Tehran Times.

Following is the full text of the interview:

Q: Saudi Arabia is increasing its oil exports to European countries. What will this decision mean for Iran’s share in this market? Iran says the decision has no impact on its share of the European oil market. Do you agree with this view?

A: Let me start out by saying that the oil market is global. I realize that most refineries are configured to handle a particular blend of crude, but crude oil exports can be shifted around over a period of a few months. Having said this, I must respectfully disagree with whoever said that Saudi policies will not impact Iran’s market share in Europe. Saudi Arabia is a much bigger market player than Iran on the global stage. Iran, no matter what it does, cannot reach Saudi Arabia’s level of exports under any imaginable scenarios. Moreover, it will take Iran time and tens of billions of dollars of investment to ramp up exports by 2-3 MBD. For now, over the next 12 months, Iran can ramp up exports by about 500,000-1,000,000 after sanctions are lifted. Iran can sell this extra output but it will put further downward pressure on oil prices. MORE