Oil Is No Longer a Strategic Commodity
IRAN NEWS ECONOMIC DESK
TEHRAN – Hamid Hosseini, spokesman for Iranian Oil, Gas and Petrochemical Products Exporters’ Association, believes oil is no longer a strategic commodity and Iran should rely on the downstream industries.
Speaking in the inauguration ceremony of Iran International Downstream Oil Industries Exhibition in Tehran, Hosseini said that till years ago, people used to say that once the oil reserves of countries would finish and the era of oil’s ruling would come to an end but after the revolution in energy sector, the world now witnesses a surplus in oil production and supply has sped past demands. He further said that so oil is not currently a strategic commodity any longer and even sanctions on Iran’s oil sales are lifted, Iran unlikely can return to the market easily and the country has to rely on the downstream industries.
Hosseini noted that economies in the countries are based on productivity resources or knowledge and technology, adding that fortunately Iran’s economy is moving from resources to productivity while economies’ of neighboring countries are still mostly based on oil, agriculture and mine resources.
He added that Iran has succeeded in developing its petrochemical, electricity, steel, home appliances and construction material industries which has helped the country to get out of reliance on resources into productivity.
Hosseini reiterated that in order to reach the productivity phase in the economy, the share of private sector should be enhanced, adding that for years the private sector had been after holding the downstream industries exhibition and finally it did it and it can turn into one of the biggest exhibition events in the country in near future.
He went on to say that Iran has enough potential to become manufacturing factory for the Middle East, noting Iran has the capability in the heavy industries and Turkey is its only rival in the region and even Turkey cannot compete with Iran due to the price of energy and workforce.
Hosseini reiterated that the major problem for Iran to become manufacturing factory in the region is the market; it means Iran should do its best to find exports markets and the exhibition can be a tool for branding and promoting Iranian goods in the regional level and companies can take advantage of this opportunity.
He stated Iran has good potentials in technical engineering services, equipment and production because there is no country to compete with Iran in producing euro 4 and euro 5 gasoline, bitumen and base oil, and no country has enough potential to compete with Iran in terms of technical and engineering capabilities. Hossein said, hence, with good plans in the downstream industries, the country can have a say for years.
Seventy-five local and foreign companies have participated in the three-day exhibition which was inaugurated yesterday at Tehran’s International Permanent Fairground.
