Iran has some of the world's biggest fossil fuel reserves, which it relies on to support its economy.
According to the National Resource Governance Institute,
"Iran is the second-largest oil producer in OPEC after Saudi Arabia, producing 4.2 million barrels a day in 2011. Oil and gas production accounted for 50 percent of government revenues and 74 percent of exports in 2010."
The petroleum industry in Iran alone makes up 32% of its GDP, according to the above source. Along with the coal and natural gas industries, it makes up a vast majority of Iran's economy. Because of this, fluctuations in global demand for fossil fuels cause massive change within the country, sometimes with colossal effects. This reliance on oil in particular, along with the large amount accessible for harvest has kept the prices relatively low.
According to the graph above, Iran's main exports of natural gases and crude oil are both abundant and diverse resources that are easily accessible and extractable. Considering the large mass of these natural resources, Iran relies on these reserves to expand its economy and create a steady source for income.
Iran is very dependent on natural resources for its economy. Petroleum, natural gas, and coal are some of the natural materials that Iran exports, crude petroleum being the most exported. 72% of Iran’s exports are crude oil. Iran’s economy is strongly based on the exportation of oil. Because Iran does not produce a lot of capital, their natural resources are the main source of income for the country and the expanding of their economy relies on the price of oil increasing.
By Misha Zaied, Meliah Capistrano, Devon Smith, Will Lattimore
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