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More Production will not Solve Iran Energy Woes, Acting Industry Minister Complains

More Production will not Solve Iran Energy Woes, Acting Industry Minister Complains
(Friday, May 19, 2023) 16:34

TEHRAN (NIPNA) - Iran's acting industry, mines and trade minister said on Friday that the country's chronic energy imbalance would not be solved by simply increasing output, and called for more efficient use of fuel in all sectors.

Seyed Mehdi Niazi, speaking at the Iran Oil Show, said that rising energy consumption was one of the biggest challenges facing the country and that optimising fuel use should be a priority for all areas.

Iran consumes more energy per person than any other country in the Middle East, and nearly twice as much as the world average.

It relies heavily on its abundant oil and gas reserves, which account for half of its state revenue.

But it also wastes a lot of energy, partly because of generous subsidies that keep prices low for consumers.

Iran produces more energy than it consumes, but it faces bottlenecks in distribution and refining. It also struggles to meet peak demand in winter and summer, when gas and electricity shortages force it to ration supplies or resort to imports.

Mr. Niazi said that Iran's industrial products should comply with standards and frameworks for energy efficiency, especially in the transport and household sectors.

He also said that Iran had recently adopted smart strategies to reduce its energy intensity, which measures how much energy is used per unit of GDP.

The minister said that Iran was not satisfied with its current level of domestic production and wanted to expand its export markets.

The 27th international oil, gas and petrochemical exhibition, which runs until Saturday, is being held under the slogan "Oil Industry, Technology Production and Optimal Consumption".

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