Energy consumption in the Islamic Republic of Iran

During the 20th century, energy consumption in the Islamic Republic of Iran was continually on the increase, from a per capita level of 200 kilogrammes of oil equivalent (koe) for traditional energies at the onset to more than 1,700 koe for commercial energies at the century's close. The main stimulants fuelling Iran's energy consumption were: (i) revenue from oil exports (wealth‐creating); (ii) a growing population; (iii) the countrywide rural‐urban shift; and (iv) relatively low domestic retail prices charged for energy vectors. For a country well endowed with hydrocarbon resources, it is not surprising that the internal consumption of refined products and natural gas grew to fill 99 per cent of its primary energy needs. During the 1990s, domestic consumption of natural gas exploded. Gas even came to rival refined products, securing up to 45 per cent of total primary energy. Future natural gas expansion will be based upon the country's ample reserves, and gas will undoubtedly become Iran's dominant source of internal energy in the 21st century—thereby liberating liquid fuels for export. Iran's dwindling crude oil production will also put pressure on the internal use of refined products, as consumption and exports come to vie for the same barrel. Exports being vital to the national economy, consumption will have to be reined in.