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Context of '1982: Iran Begins Importing Refined Petroleum'

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1982: Iran Begins Importing Refined Petroleum

Iran becomes a net importer of refined products, despite its huge oil reserves. Iran begins importing refined oil products to compensate for the inability of its refineries to keep up with internal demand. [US Department of Energy, 3/2005] In 1979, Iran’s refinery capacity was just 750,000 bpd. [Alexander's Gas & Oil Connections, 2/25/2004]

Timeline Tags: US confrontation with Iran

2004: Iran Forced to Import Gasoline

Iran, despite being OPEC’s second largest oil exporter, is forced to import a billion dollars worth of gasoline due to demand outstripping the country’s limited refining capacity. “We use 50 million liters of fuel each day, 10 percent more than just a year ago,” Seyyed Reza Kasaizadeh, planning director for the national refining and distribution company NIORDC, tells the Persian daily Khorasan. Roughly a quarter of that amount is purchased by the government on the open market, and then sold to the public at the same subsidized price as domestically refined fuel—roughly 35 cents per gallon. [Iran Daily, 12/12/2004] In addition to the subsidy program’s actual costs, the program also represents “a huge opportunity cost, because they could be selling that at world prices,” Ben Faulks, an analyst for the London-based Economist Intelligence Unit, tells the Washington Post in mid-2005. Iran hopes that its nuclear energy program will solve this problem by reducing the country’s industrial oil consumption needs. The country would then be able to sell more of its oil at market prices and substantially increase its revenue. [Washington Post, 7/4/2005]

Entity Tags: Ben Faulks, National Iranian Oil Refining & Distribution Company, Seyyed Reza Kasaizadeh

Timeline Tags: US confrontation with Iran

Iran agrees to suspend nuclear enrichment activities at its Isfahan and Natanz nuclear plants. The deal was arranged by Britain, France, and Germany. Iran insists the facilities are for peaceful civilian use and are not capable of producing the quantity or quality of refined products needed for the development of nuclear weapons. [BBC, 11/22/2004]

Timeline Tags: US confrontation with Iran

An article in the Washington Times suggests that Iran is “in effect doing an end run around US sanctions threats” by expanding oil, gas, and petrochemical deals with countries such as India, Russia, and Iraq. [United Press International, 6/29/2005] The Times list the following examples:
Proposed Iraq Oil Swap - “A proposed pipeline from Bandar Imam in Iran to Iraq’s Basra port would carry Iraqi crude oil to Iran’s Abadan refinery and refined oil products back to Iraq.” (see also October 24, 2003). [United Press International, 6/29/2005]
Iran-Pakistan-India gas-pipeline project - “[A] 1,700-mile pipeline—sometimes referred to as the ‘peace pipeline’—that would transport Iranian natural gas through Pakistan to India” (see also January 27, 2003). [United Press International, 6/29/2005]
Russia - Iran… is pursuing plans to let Russia export its Caspian Sea oil through a Persian Gulf [oil] swap scheme, under which Russia’s oil would be piped into Iran.” The Times notes: “The scheme is a direct challenge to the recently completed Baku-Tbilisi-Ceyhan (BTC) oil pipeline, which, built with US backing, was designed to get Caspian Sea oil to market through Turkey while bypassing both Russia and Iran.” [United Press International, 6/29/2005]

Timeline Tags: US confrontation with Iran

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