The State of the Iranian Oil Industry and Its Role in Irans Economy Case Study

The State of the Iranian Oil Industry and Its Role in Irans Economy - shift Study ExampleThis research will begin with the statement that Irans economic reliance on the petroleum industry has been stronger than ever as demonstrated by the steady trend in domestic pray and the governments effort to counter the adverse impact of its economic isolation. An increase in its zero output is seen as the only way to solve the issues it currently faces. This focus has led to several sustainability challenges that occupy immediate attention if the country is to achieve a viable economy in the long-term. Iran belongs to the top volt oil-producing countries in the world. The International Energy Agency reported that in 2013, the country produced 2.5 million barrels per sidereal day and about 1.2 million barrels were exported. For this reason, the oil industry remains a backbone of the Iranian economy. It generates revenues that jibe at least 18.7 percent of the countrys gross domestic prod uct and claim 85 percent of the countrys tot export and foreign currency earnings. Reports indicate that high oil prices in the past decades enabled Iran to accumulate nearly $60 billion in foreign exchange reserves. The focus in oil production, however, has led or has aggravated three important sustainability challenges air pollution damage to water resources and the environmental damage stemming from potency conflict. Air pollution remains the leading environmental problem in the country. It is caused by vehicle emissions, refinery operations, and industrial effluents. Particularly, combustion of vehicular traffic dominates pollutants. In Tehran, for example, they contribute to around 80 percent of air pollution.