Assessing Feasibility of an Effective Regulatory Framework for Iran’s Petrochemical Industry.

Shokouhi, Mohammad Reza; Khademvatani, Asgar; Javadi, Seyed Mohammad

In recent years, the completion of the value chain and increased exportation of petrochemical products have been utilized to offset oil and gas export losses. As a result, this may have created various challenges and complexities within the oil and gas industry. This study aims to identify key challenges confronting Iran’s petrochemical industry, with a particular focus on regulatory issues. It seeks to distinguish and prioritize the most critical regulatory factors necessary for establishing an effective regulatory framework in the petrochemical sector. To this end, data were collected through several interviews and questionnaire with Iran’s petrochemical experts. Using the collected data, we utilized the Delphi method to help identify the most critical challenges. The impact and significance of each challenge were determined through statistical analysis. The research findings indicate that the most important challenges are the weakness of laws to attract foreign and domestic investors, the lack of trust, and the lack of integration in this industry from upstream to downstream sector. Further, based on the research results, it is essential for Iran’s petrochemical industry to have two regulatory agencies. The Competition Council and the Securities and Exchange High Council as regulators of the physical and financial markets are considered; however, the overall structure of these councils must first be dramatically reformed so that they can regulate effectively. The important effective regulating factors which should be emphasized by the regulator in Iran’s petrochemical industry are indicated and ranked as allocation, responsiveness, financial independence, legal independence, and political independence.

Petroleum Business Review (PBR), 2024, Vol 8, Issue 3, p1

2645-4726

Academic Journal

10.22050/ijogst.2021.265594.1578