The Impact of Domestic Factors on Irans Oil Export Capabilities

The article deals with the problem of domestic oil consumption in Iran. It is argued that, due to resource mismanagement Iran may face a risk of declining oil export capabilities even without severe economic and technological sanctions. Oil sector shortcomings as well Iran`s high vulnerability to sanctions were mainly caused by Ahmadinejad populist economic policy. The findings support also the claim that so far first phase of subsidy reform has not reduced domestic consumption of oil and has not freed any financial resources for necessary investment in energy sector.