Call for Promoting Prudent Energy Consumption

EghtesadOnline: Measures should be taken to promote the culture of prudent consumption for optimizing energy use in the country, the National Iranian Oil Company’s managing director said on Sunday.

News ID: ۷۸۲۹۸۴

20 June 2018

“NIOC has made investments to curb energy consumption, which were not sustainable because of the [financial] challenges facing the company,” Ali Kardor was also quoted as saying by Shana.

The official made the statement in a farewell ceremony for Ali Vakili, the former head of Iranian Fuel Conservation Company, and the induction of his successor, Mohsen Delaviz, as well as Ali Osouli, who has been appointed managing director of Khazar Exploration and Production Company by Kardor.

Referring to NIOC’s budget limitations, Kardor expressed optimism that the Iranian Fuel Conservation Company, under the new management, would be able to convince private and state bodies to invest in the company’s projects, according to Financial Tribune.

Delaviz referred to the country’s large energy consumption, which is four times bigger than the global average and eight times more than Japan’s average energy intake, and said, “We do not have the right to squander the wealth that belongs to future generations.”

On eliminating obstacles to boost competitive production, the official said $20 billion worth of projects are to be implemented by the company, hoping that it would be able to fulfill its commitments in this regard.

Geopolitical Significance

Delaviz, who had earlier served as KEPCO’s CEO, said financial profitability is not always the most important issue and the Caspian Sea also has geopolitical and strategic significance for Iran.

About the development of Caspian Sea fields, Kardor said the sea’s hydrocarbon reserves have not been exploited by Iran so far, which was to begin after Oil Minister Bijan Namdar Zanganeh and Azerbaijan’s senior officials reached an agreement on establishing a joint venture and starting the operational phase of development.

“This is the main mission of KEPCO’s new managing director,” Kardor stressed.

As one of the oldest oil-producing areas in the world, the Caspian region is an increasingly important source of global energy production.

It holds an estimated 48 billion barrels of oil and more than 8 trillion cubic meters of natural gas in proven and probable reserves.

For the first time in more than a century, Iran discovered oil in its Caspian Sea waters in 2012, according to state media. The deposit, found at a depth of 2.5 kilometers, was estimated at that time to contain some 10 billion barrels of crude, or roughly 7% of Iran’s known reserves.