Oil, gas industry productivity growth hits 16.3%
Iran’s oil and gas industry has witnessed a 16.3 percent productivity growth during the 6th National Development Plan (to end March 19, 2024).
The oil and gas industry’s productivity has soared to 12.6 percent, from -3.7 percent, as domestic economy’s productivity rate has reached 3.7 percent from 0.8 percent, showing the country’s productivity and economic growth is indebted to the oil industry more than to other sectors, Shana reported. The incumbent administration has focused on beating off economic challenges since it took office in August 2021. A glance at statistics related to economic activities of different sectors shows that the slogan adopted in the summer of 2021 has been put into action.
The country’s economic growth has witnessed increases since the 13th administration took over.
Signs of hope for finding a way out of the 2010s stagflation have now appeared thanks to the 13th administration’s efforts, as the average economic growth in 2021 and 2022 rose to 4.2 percent.
The oil and gas industry has played a greater role when compared to other sectors in achieving economic growth for the country. According to figures released by the Statistical Center of Iran (SCI), the oil industry registered 19.8 percent and 25.6 percent growth in the spring and summer 2023, respectively – 22.7 percent on aggregate in the six months – having a 16 percent role in increasing Iran’s gross domestic product (GDP).
The SCI data also showed that Iran’s economic growth in the summer of 2023 stood at 7.1 percent, if the oil sector’s growth is included; 4.2 percent, if excluded.
On Sunday, Iran’s oil minister referred to 182 big projects in oil, gas, petrochemical, refining, and distribution sectors, saying that out of which 132 projects worth over $28.5 billion have become operational.
According to Javad Owji, 15 upstream and downstream projects worth $2.2 billion have been inaugurated and 50 others valued at $47.5 billion are underway. A memorandum of understanding (MoU) on the feasibility of producing fuel from methanol has been also inked, mentioned Owji, adding the plan’s execution will last two years. He said a 1.2-million-barrel increase in daily oil production, a 50-million-cubic-meter rise in daily gas output, a 63-million-cubic-meter jump in daily crude gas refining capacity, a considerable increase in the collection of flare gas (equivalent to 10 mcm), and a 48,000-barrel rise in shared oil fields’ daily production are part of the inaugurated projects’ outcome.