Petroleum industry in Iran
Iran is an energy superpower mostly due to the petroleum industry in Iran. In 2004, Iran produced 5.1 percent of the world's total crude oil (3.9 million barrels (620,000 m3; 160 million US gal) per day), which generated revenues of US$25 billion to US$30 billion and was the country's primary source of foreign currency. At 2006 levels of production, oil proceeds represented about 18.7% of gross domestic product (GDP). However, the importance of the hydrocarbon sector to Iran's economy has been far greater. The oil and gas industry has been the engine of economic growth, directly affecting public development projects, the government's annual budget, and most foreign exchange sources.
In FY 2009, the sector accounted for 60% of total government revenues and 80% of the total annual value of both exports and foreign currency earnings. Oil and gas revenues are affected by the value of crude oil on the international market. It has been estimated that at the Organization of the Petroleum Exporting Countries (OPEC) quota level (December 2004), a one-dollar change in the price of crude oil on the international market would alter Iran's oil revenues by US$1 billion.
In 2012, Iran, which exported around 1.5 million barrels of crude oil a day, was the second-largest exporter among the Organization of Petroleum Exporting Countries. In the same year, officials in Iran estimated that Iran's annual oil and gas revenues could reach $250 billion by 2015. However, the industry was disrupted by an international embargo from July 2012 to January 2016.
Despite continued sanctions, Iran's petroleum exports have increased in recent years. According to the U.S. Energy Information Administration, Iran exported an average of 1.4 million barrels per day of crude oil and condensate in 2023, rising to approximately 1.5 million barrels per day during the first eight months of 2024. Petroleum product exports, including liquefied petroleum gas, fuel oil, and diesel, exceeded 1 million barrels per day in 2023, up from around 820,000 barrels per day in 2022. China remained the largest importer of Iranian crude, while other export destinations included Syria, the United Arab Emirates, and Venezuela.