Oil and Gas Economics and Management
Shohreh Pirani
Abstract
The oil market is affected by the supply of oil by oil-producing countries. The Organization of the Petroleum Exporting Countries (OPEC) was established in the 1960s to balance oil prices in favor of oil-producing countries. OPEC has gone through a period of convergence and divergence since its inception ...
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The oil market is affected by the supply of oil by oil-producing countries. The Organization of the Petroleum Exporting Countries (OPEC) was established in the 1960s to balance oil prices in favor of oil-producing countries. OPEC has gone through a period of convergence and divergence since its inception under political-economic events and crises. In turn, this convergence and divergence have had a significant impact on oil production, supply, and prices in the oil market. OPEC members form a diverse range of population, size, reserves, output, gross domestic product, ideology, and type of relationship with world powers. This diversity, along with internal tensions, leads to different approaches on energy markets and production quotas, which has affected the interests of all producing countries. Thus, this study aims to assess the convergence relationship between OPEC members on the strength of this organization on the market. To reach this aim, we have used a qualitative method of descriptive and analytical type using library resources and documents. Findings show that any lack of convergence and understanding between OPEC members has led to increased supply in the oil market and fluctuating prices. These price fluctuations seriously damage the economies of exporting countries.
Asgar Khademvatani; Abdolsalam Ebrahimpour
Abstract
Considering global warming and importance of sustainable growth in economic sub-sectors, this paper presents and estimates an empirical model of renewable energy consumption for the industrial sector of selected OPEC and non-OPEC countries over the period 1990-2014. Panel co-integration estimates by ...
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Considering global warming and importance of sustainable growth in economic sub-sectors, this paper presents and estimates an empirical model of renewable energy consumption for the industrial sector of selected OPEC and non-OPEC countries over the period 1990-2014. Panel co-integration estimates by Pedroni (1999,2004) and Westerlund (2005,2006) show that, in the long term, increases in industrial value added per capita, real oil prices, and CO2 per capita are found to be major drivers behind per capita renewable energy consumption for both OPEC and Non-OPEC nations. Panel Granger causality by the Dumitrescu and Hurlin (2012) method confirms that there are bi-directional causality relationship between research variables and therefore verify feedback hypothesis. Finally, FMOLS and DOLS results show that when industrial value added per person increases, per capital renewable energy consumption increases by greater magnitude in non-OPEC than OPEC countries; also an increase in CO2 emissions per person increases per capita renewable energy consumption by greater amount in non-OPEC than OPEC nations.
Seyed Mohammad Javadi; Abbas Alimoradi; Mohammad Reza Ashtiani
Abstract
Recent theories of firm dynamics emphasize on the role of financial variables as determinants of firm growth. Most of the technical literature shows that there is a positive relationship between financial leverage and firm growth. The purpose of this paper is to examine whether such relationship exists ...
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Recent theories of firm dynamics emphasize on the role of financial variables as determinants of firm growth. Most of the technical literature shows that there is a positive relationship between financial leverage and firm growth. The purpose of this paper is to examine whether such relationship exists among oil and gas companies within the Organization of the Petroleum Exporting Countries (OPEC). Data were collected from the selected members of the OPEC. The collected data was then analyzed using the Arellano and Bond (1991) GMM method and Sargan test. The results showed a significant and positive relationship between financial leverage and firm growth which is in line with the technical literature. This research contributes to the body of knowledge by examining a specific and important sector within several different countries. It shows the current theory is not affected by industry or country.
