Global energy market developments, especially price fluctuations and geopolitical challenges, have compelled Iran to reconsider its strategies in the oil and gas sector. The country, with its vast hydrocarbon reserves, can leverage these conditions to enhance its position in the global market.
Need for Investment in Upstream Fields
Iran needs to redesign its investment mechanisms in upstream oil and gas fields to turn current challenges into opportunities. Mehdi Sadeghi Shahdani, a faculty member at Imam Sadiq University, emphasizes that this investment will not only impact the sustainable supply of feedstock for downstream industries but can also help address the issue of feedstock shortages in the cold seasons. The existence of global energy price fluctuations presents a golden opportunity for attracting investment in this sector.
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Development of Modern Technologies and Renewable Energies
Given the current challenges, the development of modern technologies and renewable energies to liberate valuable fuels and create integrated value chains seems essential. Sadeghi Shahdani believes that investment in alternative technologies can help reduce production costs and increase the competitiveness of renewable energies. Optimizing energy consumption and directing part of the electricity production capacity towards renewable power plants can free up significant amounts of fossil fuels and natural gas, which can be used as valuable feedstock in the petrochemical and steel industries.
The current developments in the global energy market represent not only a challenge but also an exceptional opportunity for Iran to strengthen value chains and increase revenue generation through the development of downstream industries. This approach can protect the economy against fluctuations in the raw material market and increase added value.
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