Iran’s Oil Production Sees 19% Increase in 2023 Despite Challenges
Iran’s oil and condensates production surged by 19% in 2023, outpacing the global increase, while gas flaring hit a record high since 2012. Despite facing challenges such as outdated equipment and gas deficits, Iran continues to boost its oil output amidst US sanctions.
In 2023, Iran’s oil and condensates production averaged 3.94 million barrels per day (bpd), a 19% increase from 2022 figures, according to the Energy Institute and reported by ILNA news agency. This outpaced the global oil production increase of 1.4%, which averaged 82.636 million bpd. Despite US sanctions imposed in 2018, Iran has steadily increased its oil output and anticipates exceeding 4 million bpd by March 2024.
Gas flaring in Iran also saw a 19% increase in 2023, reaching 20.4 billion cubic meters—the highest since 2012, according to a World Bank report. This is attributed to higher oil production and a lack of investment in gas infrastructure. Iran ranked second globally in gas flaring, behind Russia, with significant greenhouse gas emissions amounting to 43.1 million tons from flaring alone. Total greenhouse gas emissions reached 927 million tons, placing Iran sixth globally.
Iran’s outdated equipment and insufficient investment have led to higher flaring rates, particularly in new oil fields developed by domestic companies. Methane emissions also rose by 12%, and gas leakage amounted to 29 billion cubic meters due to an inefficient transmission network. Consequently, Iran faces significant natural gas deficits in winter, causing a reliance on more polluting fuels and a drop in gas exports by 25% to 14.3 billion cubic meters in 2023, based on BP estimates.