National movement to increase oil production
Iran’s oil industry has experienced a major concern in recent years, regardless of political pressure and sanctions. Prioritization was not considered.
Increasing the distance between Iran’s oil fields and global power, understanding and recognizing the economic and technical importance of increasing oil from oil fields and improving the country’s scientific and technical level in this field, has caused the issue of oil tank engineering and increasing the extraction factor to one It has become one of the priorities of the industry management in the country and even in the upstream laws such as the Fifth Development Plan (Article 130) and the Sixth Development Plan (Article 48, paragraph C), it is necessary to increase the withdrawal from oil fields by one percent. And assignments have been set in this regard.
Iran has an estimated 800 billion barrels of oil in place, according to domestic estimates. Of this amount, about 200 billion barrels of oil can be extracted, given the current capacity of about 25 percent of oil production. Meanwhile, the global average oil extraction is about 35%. Iran currently has about 120 known oil fields, of which 60 have been developed, and about 20 of them are oil extraction operations. It is estimated that with a one percent increase in Iran’s extraction of oil fields (8 billion barrels of oil) to $ 50 per barrel of oil, about $ 400 billion will be added to the country’s oil revenues. This figure is equivalent to almost five years of total current Iranian oil revenues. Reaching the global level of 35 percent will increase Iran’s oil revenues by about $ 4 trillion, which, although such an event is not possible, at least in the medium term and under current conditions, foreign restrictions and pressures, cannot be ignored.
Naturally, in the difficult conditions in which the oil industry finds itself, it may not be logical to talk about the implementation of the one percent increase in oil production due to severe financial constraints as well as technical and engineering constraints, because this task was not achieved in the Fifth Plan. The strategic plan to increase the harvest factor requires careful and targeted planning, as well as high investment and advanced knowledge.
But these restrictions and pressures should not marginalize the national and strategic plan to increase the extraction rate from oil fields. Oil fields go through three periods until their deaths; The first stage is the extraction of oil in a natural way and intra-well pressures. The second period is to help continue oil extraction by injecting gas and water into wells, and the third period is to use new methods such as chemical, thermal, intelligent and so on. Many developed and active Iranian oil fields have now entered the second half of their lives, so the natural process of extracting oil from these fields is nearing completion. Given the slow pace of development of new fields, there is a risk that Iran’s current oil production capacity will be lost and the country’s position in the global oil market will be challenged by removing restrictions.
In this situation, it seems that focusing on the strategic plan to increase the oil extraction coefficient is a priority for the Iranian oil industry. Second-generation methods, especially gas injection, face limitations such as gas shortages, although with the implementation of the national plan to collect gaseous gases on the one hand and increase gas production from gas fields, it is possible to achieve a one percent increase in harvest in the coming years. Naturally, the utilization of the capabilities and methods of the third period is difficult due to some technical and scientific limitations and the existence of many problems in the oil industry’s relationship with foreign companies and leading companies, as well as the lack of financial resources, but this gap is significant. It has recently begun, that is, taking advantage of the scientific and technical potential of the country’s universities and scientific and research centers, and engaging them directly with oil fields. Currently, 9 technological contracts have been signed between the National Iranian Oil Company and 9 universities and scientific centers in the country to increase the oil extraction coefficient from 9 oil fields in the country, and according to oil officials, good news is coming from the achievements of this movement.
These agreements, in addition to increasing efficiency in strategic matters, clearly broke the long spell of lack of communication and cooperation between the oil industry and the scientific and academic body and paved the way for further cooperation and complementary activities between the oil industry and the country. Along with this move, we should not neglect the efforts to finance the increase in harvesting projects. Undoubtedly, with a realistic view, the national and strategic plan to increase the withdrawal of oil fields should be a priority for the injection of financial and capital resources of the country. Well-initiated technical and scientific advances should not be stopped and archived as a research project, but should be implemented with proper and timely funding and intelligent and responsible management. Accordingly, this national plan should be a priority for the resources of the National Development Fund, which is fed by oil revenues. The survival of this fund depends on the continuation and increase of oil revenues. This requires a national movement at the national level, so that by lifting sanctions and restrictions, Iran can return to world oil markets with more life and energy.