Iran Oil and Gas Market Size (2024 - 2029)

Iran Oil and Gas Market Size Summary

The Iranian oil and gas market is poised for growth, driven by increasing demand for petroleum products and expanding natural gas pipeline capacities. Despite the challenges posed by the COVID-19 pandemic, which led to a decline in oil prices and revenue, the market is expected to recover as global demand for oil and gas rises. The upstream segment, which includes exploration and production, is anticipated to dominate the market due to significant investments and large reserves. However, the volatility of crude oil prices remains a potential hindrance to market expansion. The discovery of gas hydrates in the Persian Gulf presents new opportunities for natural gas production, further bolstering the market's prospects.

Iran's energy demand is projected to grow significantly over the next two decades, supported by a rising population and improved living standards. The country's efforts to increase oil production, such as the expansion of the South Azadegan oil field, are crucial for maintaining its market position. Despite the decline in older oil fields, new investments are expected to sustain production levels. The construction of new pipelines, like the Tabesh pipeline, aims to enhance distribution capabilities, while investments in natural gas production are set to increase due to its lower carbon emissions. The market is consolidated, with major players like the National Iranian Oil Company and Iranol Oil Company leading the charge in expanding Iran's oil and gas infrastructure.