Iran’s energy sector is slowly collapsing under the weight of subsidized gas prices and poor development of its aging oil fields, according to a number of Western economists. Despite boasting the world’s second-largest oil reserves after Saudi Arabia, Iran has resorted to rationing its gasoline. As global energy prices slide downward, some analysts predict Iran’s economy, already suffering from UN sanctions, could take a big hit that will have important political ramifications. One economist even predicts Iranian energy exports could dwindle to zero by 2015 without a sufficient influx of outside investment. Iran says it has taken some steps to spur investment, such as striking energy deals with countries like Pakistan and China, but it has proven unwilling to cut gas subsidies and curb its domestic appetite for energy.
1913 Intel
International Conflict, Western World Threats and Geopolitical Intelligence
Tehran’s Oil Disfunction
Posted by Matt in February 19th, 2007
Map for Tehran, Iran
[Countries link to CIA Factbook. States link to Wikipedia.]Flickr Tags: Iran+Iran
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