Iranians have developed a peculiar culture of consumerism during the past decades and that is why the country has been vulnerable to the unending US animosity and economic sanctions, the energy minister said at the weekend.
“Those who have sanctioned us know that our weak point is consumerism. We are a consumer-based society and the reason that we have been sanctioned is our bad consumption habits,” ILNA quoted Reza Ardakanian as saying.
The minister echoed the views of academia and respected economists that the country had the opportunity to wean away from overreliance on oil for 40 years but did not do so. With this knowledge the United States has always put pressure on the country and its economy, he said.
Iran has been under a variety of hostile US economic sanctions since the 1979 Islamic Revolution from which time the two countries have not had diplomatic relations.
Iran holds 10% of the world's proven oil reserves and 15% of gas. Prior to the new US sanctions, it was OPEC's second largest exporter and the world's fourth largest crude oil producer.
US President Donald Trump re-imposed sanctions on Iran oil exports last November after pulling out of a 2015 nuclear accord between Iran and six world powers. The sanctions have reportedly cut Iranian oil exports to less than 20% compared to last year.
Iran exported over 2.5 million barrels of oil per day before the US sanctions last year, but from last November Iran’s sale of crude oil gradually declined and according to latest reports it has dropped below 500,000 bpd.
“Compared to the average consumption levels in the developed and industrialized world we eat more, wear more and have a higher residential per capita demand. Despite all this our feeling of satisfaction and happiness is far less. We need to correct our mental framework,” Ardakanian said in a statement rarely if ever heard from senior officials of state and government.
Comparing Iran to China, he said the reason why the world’s second biggest economy and the most populous nation cannot be sanctioned like Iran is that the people of that country consume less in all sectors.
Overconsumption Across the Board
Referring to the prohibitive power consumption in summer, especially in the dry and desert regions, Ardakanian said that some people want to have similar climatic conditions as the Scandinavian countries and they turn on several split air conditioners in their homes and place of work.
“While the comfort temperature is 24 degrees centigrade, sometimes the indoor temperature (in homes and offices) is set at 16 or 17 degrees,” he noted, adding that this wastage of energy shows the dire state of overconsumption in the country.
International Energy Agency data show Iran ranks 14th in electricity generation in the world (with installed power capacity of 81,000 MW) and is 18th in power consumption that has risen by an average 5.5% per annum over the past 40 years.
Likewise, water, gas and gasoline consumption in the country is over and above the global average.
Unsustainable and visibly frightening water consumption patterns have indeed become a serious source of concern.
Climate change, illegal water wells, wasteful farming practices, water-intensive industries in arid regions and injudicious use of water in households are known to have a huge impact on the deepening water crisis.
According to the National Iranian Gas Company, Iran’s daily gas consumption at 700 million cubic meters exceeds that of the 28-nation European Union which consumes a total of 500 mcm per day.
This is while Iran has a population of 80 million compared to the 513 million EU citizens.
While average global gas consumption has registered a small increase of 1.6% in the past three decades, the demand in Iran shot up 4.2% in the same period.
Most households burn gas imprudently, especially in winter. Old and outdated industrial equipment have poor efficiency rates that show why such huge volume of gas is wasted.
A new report from the National Iranian Oil Products Distribution Company showed average daily gasoline consumption has increased from 87.1 million liters last year to 91.2 million liters now.
Energy experts and conservationists say overconsumption is largely due to cheap petrol prices. However, others say consumption would hardly decline even if fuel prices rise. Locally-made cars are notorious for poor mileage and infamous as gas-guzzlers contributing terribly to the air pollution.
A comparison between Iran’s energy consumption and global figures indicates that the world's primary energy consumption increased 27% in the past decade, while Iran’s overall energy use rose by 80%.
Official data further shows that Iranians, especially profligate consumers in big cities, use energy in buildings at levels said to be 2.5 times above the world average.
