Iran's Energy Reserves

Iran has the world's second-largest proved gas reserves after Russia, with 33.6 trillion cubic metres, and the third-largest natural gas production after Indonesia and Russia. It also ranks fourth in oil reserves with an estimated 153,600,000,000 barrels. It is OPEC's second-largest oil exporter, and is an energy superpower. In 2005, Iran spent US$4 billion on fuel imports, because of contraband and inefficient domestic use. Oil industry output averaged 4 million barrels per day (640,000 m3/d) in 2005, compared with the peak of six million barrels per day reached in 1974. In the early 2000s, industry infrastructure was increasingly inefficient because of technological lags. Few exploratory wells were drilled in 2005.

In 2004, a large share of Iran's natural gas reserves were untapped. The addition of new hydroelectric stations and the streamlining of conventional coal and oil-fired stations increased installed capacity to 33,000 megawatts. Of that amount, about 75% was based on natural gas, 18% on oil, and 7% on hydroelectric power. In 2004, Iran opened its first wind-powered and geothermal plants, and the first solar thermal plant was to come online in 2009. Iran is the world's third country to have developed GTL technology.

Demographic trends and intensified industrialization have caused electric power demand to grow by 8% per year. The government's goal of 53,000 megawatts of installed capacity by 2010 is to be reached by bringing on line new gas-fired plants, and adding hydropower and nuclear power generation capacity. Iran’s first nuclear power plant at Bushire went online in 2011. It is the second nuclear power plant ever built in the Middle East after the Metsamor Nuclear Power Plant in Armenia.