Iran's energy sector review

While Iranian president Mahmoud Ahmadinejad states that "Iran is ready to govern the world", the White House warned that the possibility given to Tehran will soon expire. The West accuses Iran of developing nuclear weapons, supporting terrorism and dictatorship, but Tehran believes the Western countries are trying to overthrow the country's government. All these testify the ambiguity of hopes to hold constructive talks between the two warring sides. If Iran acquires nuclear weapons, it will be because of the fear from the West. Thus, it is unknown how Iran and the West will come to an agreement. At first glance, there is only one option to address this issue - Tehran's adoption of Additional Protocol. According to the Additional Protocol approved by the IAEA in 1997, the Agency inspectors may conduct an investigation on the Iranian nuclear sites at any time convenient to them. However, this does not give any guarantees. First, Iran can build a secret nuclear facility

What direction does the Iranian nuclear program have? The country really needs nuclear energy given Iranian energy needs increasing 11 percent. Official Tehran has developed the program to transform nuclear energy into electricity, with total capacity of 20,000 megawatts within twenty-year plan. But the question is whether the implementation of this plan is real. At least 20 plants for enriching uranium by 3,5-5 percent on an industrial scale are necessary to produce this amount of electricity. Moreover, about 54,000 active centrifuges must operate at each plant without fail. At present, Iran has installed only 9,000 centrifuges at the enrichment plant at Natanz, half of which are inactive. This plant is able to enrich up to 2 kilograms of 3.5-percent enriched uranium per day, that is, this plant will enrich the 700 kilograms of uranium if it has "Yellow Cake". Taking into account that only 9,000 have been installed during Ahmadinejad's five-year taking office, half of

West demands Iran to provide to Russia 1,200 kg uranium enriched at 3.5 percent for receiving 20-percent enriched uranium in order to provide fuel for reactor of Tehran nuclear laboratory. Why 1,200 kg? Although Iranian negotiating group's initiative to the permanent members of UN Security Council and Germany ("5 +1" countries) on October 1 caused the smile to all the parties in connection with the solution of Iran's nuclear program, gradually Iran's fair refusal from its promises turn the expectation to nothing. In late September, during his participation to the 64th session of UN General Assembly, the President of Iran agreed upon exchange of uranium, i.e. transferring 3.5 percent and receiving 20-percent enriched uranium, in order to provide fuel for Tehran nuclear laboratory. At the joint meeting held on 1 October, which was attended by representatives of "5 +1" and the Secretary General of the Security Council of Iran Saeed Jalili, Jalili voiced

The deficit of foreign investments in Iranian oil and gas sector exceeded $22.5 billion in 2008. Iranian oil and gas sector needs investments to the amount of $24 billion annually. According to UN, investments did not exceed $1.5 billion in 2008. The Director of Iranian Privatization Committee, Golamreza Heydari Kord Zengene, said that Iran needs to draw $1.3 trillion of foreign investments in oil and gas sector for the next 20 years, ($ 65 billion per year). According to BP, as of January 1, 2009, Iranian total proven oil reserves amount to 137.6 billion barrels. Before the Islamic Revolution in Iran (in 1979), daily oil production in Iran amounted to 6 million barrels. Presently, it does not exceed 4.5 million barrels. The main reason of reduction of oil production is the lack of renewed oil and gas infrastructure, deficit of new investments, insufficient amount of extracted gas for repumping into the reservoir to maintain pressure in oil-bearing reservoirs. Iran needs 150 million

Official Tehran and the "5 +1" group have shown optimism in connection with the meeting between Iran and the permanent members of UN Security Council + Germany. There is no comprehensive information on the details discussed at the meeting, but noteworthy is Iran's proposal to purchase uranium enriched by 19.75 percent from the "5 +1" countries to use in nuclear laboratories. According to France Agency, Iran agreed to implement part of the uranium enrichment process in Russia. Iran will give Russia uranium enriched by 3.5 percent, which will be enriched under the supervision of the International Atomic Energy Agency (IAEA) to 19.75 percent and back to Iran for use in Tehran's nuclear reactor and laboratory. The volume of Iran's uranium enriched by 3.5 percent is 1.5 tons. The West suspects that Tehran is secretly enriching uranium by +90 percent to create nuclear weapons, although the enriched uranium is only part of the production of nuclear weapons. Cu

Iran says it has designed new package of proposals for the UN Security Council permanent members. This is second package of proposals designed by Iran for West. President Mahmoud Ahmadinjead said the next package of proposals "was announced taken into consideration international processes and conditions". Last year UN Security Council permanent members submitted Tehran package of proposals to halt the most sensible part of Iran's nuclear program - uranium enrichment. The proposals included an item on assisting Iran in supply of nuclear energy for peaceful purposes and economic concessions. In fact, Iran did not pay attention to West's proposals. Iran is not actually interested in economic concessions. He is expected to be more interested in strategic concessions. Iran claims nuclear program is developed for peaceful purposes. The same statements were made also by Russia, China, India and even North Korea who at last presented the carefree international community wit