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Although addressing crude oil selling has been a priority in recent years, it still persists in the country. Reducing crude oil selling in the petroleum industry requires necessary measures and planning. According to experts, focusing on completing the value chain, developing refineries, and leveraging the expertise and human resources can be effective in this area.
Currently, preventing crude oil selling and moving towards the production of value-added products in the petroleum and gas condensates sector should be a primary focus in the energy sector. The more we can produce high-value petroleum products instead of raw materials, the more value-added benefits we will achieve.
Some experts believe that not moving away from crude oil selling has drawbacks that have historically affected the country. Relying on crude oil revenues limits opportunities to explore other sectors and does not highlight the need to utilize other capacities. Crude oil selling might initially seem cost-effective, but not when we have to import refined products at many times the price of crude oil. Furthermore, reliance on crude oil also leads to brain drain and the failure of talented individuals in the country.
Crude oil selling not only diminish the motivation of talented individuals but also reduce job opportunities within the country. Additionally, selling crude oil leads to significant corruption and rent-seeking, and makes the country vulnerable to fluctuations in petroleum prices. On the other hand, crude oil selling increase the country’s dependence on imported refined products for industrial use and minimize export profits.
Emphasis on moving away from crude oil selling in strategic documents
Analysts argue that given the emphasis in the country's strategic documents and macro policies on the need to move away from crude oil selling and shift towards new priorities in the industry, planning and strategies are necessary to transition away from crude oil selling.
Importance of completing and strengthening the supply chain of downstream industries
Completing and strengthening the supply chain of downstream industries can play a crucial role in reducing crude oil selling. Conditions must be created so that increased profits from petrochemical industries are seen as a result of strengthening the value chain, production, and expanding this system. In this way, focus can be shifted from crude oil selling to more future-oriented and sustainable priorities.
Efforts should focus on completing and strengthening the supply chain of downstream industries. If the necessary raw materials for downstream industries are provided, its impact on the production and value chain will be evident.
Reaching this point requires developing a systematic and operational roadmap. There is certainly the capacity and opportunity to shift priorities from crude oil selling in the petrochemical industries, but implementing this requires collective and serious commitment. In other words, the broad roadmap for transitioning from crude oil selling and its main components are clear, and now the focus should be on implementing this roadmap on a larger scale.
Emphasizing the need to move away from crude oil selling and increase petrochemical production, experts believe that strengthening and developing petrochemical industries and creating petro-refineries is an undeniable necessity. Diversifying petrochemical production not only adds value and boosts exports but also creates significant employment opportunities.
Strategies to address this issue involve using tools like tax credit policies or leveraging successful experiences in producing strategic items for the first time, and incorporating knowledge-based economy and research and development into the industry, so that raw materials are converted into products, helping neutralize sanctions and develop the industry.
Petro-refineries as a strategy to reduce crude oil selling
Among the strategies commonly suggested for moving away from a single-product economy is building petro-refineries and converting petroleum into various products. This strategy not only significantly contributes to eliminating crude oil selling but also helps cut dependencies and neutralize sanctions.
By establishing refineries and petro-refineries and completing this chain, crude oil can be converted into petroleum products like gasoline and other derivatives, which can then be used for domestic needs or exports. Another method to prevent crude oil selling is utilizing the spare capacity of extraterritorial refineries.
The development of petro-refineries should be implemented as a strategic policy by all governments. Building and operating small-scale refineries not only provides benefits such as producing products and accelerating the transfer and distribution of various petroleum products to remote and hard-to-reach areas but also facilitates the entry of the private sector into the refining industry.
Enhancing the role of knowledge-based companies in the petroleum industry
The role of knowledge-based companies in completing the value chain is extremely important. Iran has high potential in human resource capacity, so using modern technologies to prevent crude oil selling and complete the value chain of each industry is feasible. This completion and development of the value chain can invigorate the national economy, increase national wealth and production, and reduce imports.
Crude oil selling is a serious problem, and if we can invest to convert raw products into valuable products, wealth creation will result. Preventing crude oil selling and converting raw materials into valuable petroleum products can be a serious priority for national interests.
It should be noted that preventing crude oil selling is not limited to crude oil alone but also encompasses the petrochemical and gas industries. By converting gas into electricity and completing the value chain of the petrochemical industry, we can witness significant improvements in exports and increased revenue for Iran. Additionally, efforts should be made to create value-added products, a subject highlighted in recent strategic documents emphasizing the need to prevent crude oil selling.
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