Iran Still Enriching Uranium…and Looking for Higher Oil Prices

…Iran’s economy is set to collapse under the weight of its energy situation. Despite holding the third-largest global oil reserves, Iran’s rising consumer appetite is driving its energy exports down.

Over the last three decades, Iran’s population doubled to almost sixty-nine million people. And due to a lack of refining capacity, they must import 40% of their gasoline demand. The rise in domestic consumption will drastically lower their future oil exports, which is why higher prices are so advantageous–they are able to sell less oil and still reap significant oil revenues.

And losing exports would be a huge deal. Since oil and gas production accounts for 80% of their total exports, losing that revenue would put a considerable strain on Iran’s subsidized gas prices.

But consumption increases aren’t the only thing dragging down Iran’s exports. Their massive oil fields are also depleting at a rapid pace. The IEA reports that almost $165 billion will have to be invested for Iran to meet its energy demand in 2030. But Iran still fails to develop its oil and gas reserves.

Energy and Capital