Iran has an integrated economy while the typical "oilstates" are Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and U.A.E.
Saudi Arabia has the largest reserves of oil in the world (23% of the world total). It is also the largest producer of oil in South West Asia amounting to 144 million tonnes in 1985. Oil pipelines transport the crude to the Mediterranean coast. This avoids transport by tankers and travel Via Suez canal.
Oil Resources: Petroleum resources in Iran are confined to the two systems of folded rocks at either end of the Alpine system. Oil occurs in Karun valley, Zardah-kuh and north western highland. The oil refineries were destroyed, especially the Abadan refinery in the Iran-Iraq war.
The oil fields of Iraq can be grouped as Northern oil fields and Persian Gulf fields. There are oil fields in North at Kirkuk, Baijii, Khanaqin, Mosul and Baghdad. The southern part of Iraq near the head of the Persian Gulf include the country's three principal oil field. The pipe line which was constructed from Zubair to the port of Fao at the mouth of the Shalt-al-Arab has been damaged during the Iran-Iraq war.
Iraq has two important oil loading ports in the Northern gulf. This country has a uniquely sophisticated oil export system. Before the outbreak of Iran-Iraq war, a two-way reversible flow of 780 km long pipeline delivered around 1 million barrels a day, of Kirkuk crude southwards to the Gulf terminals. There are oil pipelines from Kirkuk to ports on the Mediterranean.
Kuwait's oil production is steadily increasing and gas form the backbone of the country's economy. The total proven reserve is over 71 billion barrels of crude oil. At the present rate of production, it can continue for another 100 years.
Other countries of Persian Gulf may be said to comprise the two small peninsulas of Musandan and Quatar and the islands lying offshore. Abu Dhabi is becoming and increasingly important crude oil producer. The main crude oil terminal for Abu Dhabi, offshore field is Dasisland. Abu Dhabi is one of the important OPEC producer and is one par with Kuwait.
Most oil states now tend to take direct control of oil companies. Concessions given to foreign companies in the past have been reduced. The oil states now demand more favorable agreements with the oil companies.
West Asia produces more than 50% of the world's demand. The present day world economy is controlled by OPEC countries. The countries which import oil are affected by the soaring price of oil. South West Asia has 61% of the world's oil reserve and 36% o the world's natural gas.
OPEC states exercise power in world's affairs. Great income and status disparities have appeared as a result of the oil boom. The gap between the ruling elites and the bulk of the population is often wide and cause serious social and political unrest. The energy of the petroleum economy is changing many features of the political, economic and social fabric of the oil states. Arab Israeli conflict, Iran-Iraq war, Iraq's occupation of Kuwait and subsequent withdrawal and other political unrest have disrupted the economic progress of the concerned countries.
This area though not militarily strong today, yet economically is very rich because of petroleum. Petroleum is the source of petrodollars today and excess of them has made the people more conscious of themselves then they were before.
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