Iran's Oil and Gas Production Lagging Behind Oman

Oman's oil production is nearly 29% of Iran's, and in terms of gas, Oman produces over 15% of Iran's output despite having smaller reserves. The Open Data of Iran platform has conducted a regional analysis comparing Iran's oil and gas industry with Oman, one of the few countries in the region with good political relations with Iran. According to the platform, Oman has a very small share in the global oil and gas scene, while Iran possesses the largest oil and gas reserves in the world. Oman's oil reserves are about 3% of Iran's, and its gas reserves are only about 2% of Iran's. The Open Data of Iran has published the following charts to illustrate how far the Islamic Republic has fallen behind its weakest regional competitor in oil and gas production. Chart 1: Comparison of Oil Reserves of Iran and Oman - in billion barrels of oil. Chart 2: Comparison of Crude Oil Production of Iran and Oman - Average from 2019 to 2021 - in thousand barrels per day. The following two charts compare the natural gas reserves of Iran and Oman and the production levels of both countries: Chart 3: Volume of Gas Reserves of Iran and Oman - in trillion cubic meters. Chart 4: Natural Gas Production of Iran and Oman - Average from 2019 to 2021 - in billion cubic meters per year. As shown in the above charts, Oman exports more than its reserves. The oil production of this country is nearly 29% of Iran's production, and this is not a result of OPEC production quotas. Iran has produced much less than its OPEC quota in recent years due to sanctions. In gas production, Oman's output, despite its smaller reserves, is over 15% of Iran's gas production. This means that Oman is utilizing its natural resources more effectively than Iran. The Open Data of Iran attributes Oman's success to three key principles: 1. Collaboration with international companies such as Shell, Total, and British Petroleum, which have brought capital, technology, and management expertise to the country. For example, Oman has one of the largest thermal oil recovery projects in the Middle East. The 'Mukhazinah' steam injection project, in collaboration with the American oil company 'Occidental', produces over 120,000 barrels per day. 2. A calm investment environment with stable financial, tax, and contractual conditions. For instance, from 2001 to 2022, Oman's average inflation rate was about 2% per year, while Iran's inflation rate was mostly double digits during that period, exceeding 40% in 2021. 3. Emphasis on increasing local participation or 'Omanization' and encouraging private sector involvement in the oil and gas industry. While in Iran, the Revolutionary Guard and various quasi-governmental institutions, or 'foundations', have swallowed energy contracts, Oman established 'OQ', a fully integrated oil and gas company that can compete with international oil companies and operates in 17 countries. An example of Oman's high production is shown in the following chart. Annual production of liquefied natural gas in Oman - in billion cubic meters. Oman began its efforts to produce liquefied natural gas almost simultaneously with Iran. In the late 1990s, during the presidency of Mohammad Khatami, when international oil companies flooded into Iran. While Iran was constantly changing its course and could not start its liquefied natural gas production project, Oman began producing this product in 2000. Despite its small gas reserves and importing gas from Qatar via the Dolphin pipeline through the UAE, Oman has been able to expand its liquefied natural gas trade and is now among the top 10 producers in the world.