Why is Iran, one of the countries with the largest oil and gas reserves in the world, facing an energy crisis?

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By Jack Ferson

There is great confusion and uncertainty. “There is a lack of electricity because they have a daily gas deficit due to poor political management and corruption. On an economic level, the fundamental reason is that energy infrastructures are obsolete. As a result of the sanctionsno foreign investments have been made in Iran and the energy infrastructures have not been modernized. As if that were not enough, the country has embarked on a covert war (or not) with Israel and it has exploded two gas pipelines, causing the Iranian government to draw on emergency gas reserves, which have been depleted.

With the gas that the government has, it has to decide: supply to homes or companies. “90% of Iranian homes rely on gas for heating and cooking and now in winter that demand has increased. That’s why The government has decided to supply gas to homes to avoid a revolt and has cut off power companies so they can’t burn gas to generate electricity. This has hurt small and medium-sized companies more than large ones. But this cut in supply is not unique, they also have problems in water supply and the currency is in free fall against the dollar.”

A dramatic situation, says Cava, for a rich country based on enormous natural resources and that due to the management carried out it is suffering.

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