Iran is the second-largest OPEC oil producer. Oil production is extremely important to Iran, accounting for almost all of Iran's energy production. Iran's economy relies heavily on oil export revenues. The EIA has reported that those revenues account for about 80 to 90 percent of Iran's export earnings and about 40 to 50 percent of Iran's budget.21 Iran's oil export revenues were further boosted by increases in crude oil prices in the first few years of the new millennium.
Iran holds about 10 percent of the world's oil reserves, according to Oil and Gas Journal in 2006. In October 1999 Iran announced what it deemed to be its biggest oil discovery in 30 years. And in July 2004 Iran's oil minister, Bijan Namdar Zanganeh, also reported that new oil discoveries in the region of one of Iran's existing oil fields had boosted Iran's proven oil reserves to about 132 billion barrels. Iran also has the world's second-largest reserves of natural gas, according to the EIA.22
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