Energy

Iran ranks second in the world in natural gas reserves and also second in oil reserves. It is OPEC's 2nd largest oil exporter. In 2005, Iran spent US$4 billion dollars on fuel imports, because of contraband and inefficient domestic use.Oil industry output averaged 4 million barrels per day (640,000 m³/d) in 2005, compared with the peak of six million barrels per day reached in 1974. In the early 2000s, industry infrastructure was increasingly inefficient because of technological lags. Few exploratory wells were drilled in 2005.
In 2004, a large share of Iran’s natural gas reserves were untapped. The addition of new hydroelectric stations and the streamlining of conventional coal and oil-fired stations increased installed capacity to 33,000 megawatts. Of that amount, about 75% was based on natural gas, 18% on oil, and 7% on hydroelectric power. In 2004, Iran opened its first wind-powered and geothermal plants, and the first solar thermal plant is to come online in 2009. Demographic trends and intensified industrialization have caused electric power demand to grow by 8% per year. The government’s goal of 53,000 megawatts of installed capacity by 2010 is to be reached by bringing on line new gas-fired plants and by adding hydroelectric, and nuclear power generating capacity. Iran’s first nuclear power plant at Bushehr is set to go online late 2008 or early 2009.