Assessing the Stability of the Oil and Gas Production in Common Fields: Application of Game Theory
Journal Title: Journal of Economics, Finance and Management Studies - Year 2022, Vol 5, Issue 05
Abstract
One of Iran's oil and gas reservoirs' characteristics is that some of Iran's huge reservoirs are shared with its neighbors. Iran's common oil and gas fields with its neighbors are among the most valuable income and national wealth sources, so production delays cause irreparable damage to the national economy. Therefore, this research attempts to use game theory to investigate the optimal production of common oil and gas fields onshore and offshore. For this purpose, the existing revenues and production costs of oil and gas fields have been identified and extracted by reviewing the research literature. Yadavaran oil field and South Pars gas field were selected as case studies. After developing the model using mathematical optimization, the values of decision variables, optimal production rate, optimal selling price, and optimal profit for each player in each common field were calculated. The results of solving the designed games showed that the best strategy and Nash equilibrium for Iran is the strategy of cooperation.
Authors and Affiliations
Seyed Pendar Toufighi
Keywords
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- EP ID EP707198
- DOI 10.47191/jefms/v5-i5-06
- Views 109
- Downloads 0
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