The Long Run Impact of Technology Diffusion on Average Cost in Upstream Oil Industry; Case Stud of Iran

Authors

Abstract:

Literature review related to nonrenewable resources shows that technological improvements have considerable effects on resource depletion and decreasing operational cost.  Therefore it is assumed that technology is the most important and influential variables in the production function and utilization cost of these resources. In this study, we assess the long term effect of technology diffusion on average cost in oil industry upstream activities. Desired variables in this research include: oil and gas production, upstream average cost, depletion effect and technology diffusion in the upstream sector. We use cointegration test results, using error vector correction model to study the long term relationship between variables for 1967 to 2017 time frame. Johansson test results show that there is a long term cointegrated relationship between variables of the model. Using instantaneous reaction functions, we calculate the effect of technology improvement on upstream cost reduction, oil production increase and increase of evacuation effect.  At the end, we use variance analysis, to calculate the share of each variable variation in changing average cost in each period. The highest variation value relates to the technology variable. The share of this variable has been ascending up to the 15th period of time. The long term adjustment coefficient for all variables is found to have the desired sign and be negative. In this model the technology coefficient is meaningless because the impact of technology compared to the exterior long term relationship parameters is weak.  

Upgrade to premium to download articles

Sign up to access the full text

Already have an account?login

similar resources

the impact of e-readiness on ec success in public sector in iran the impact of e-readiness on ec success in public sector in iran

acknowledge the importance of e-commerce to their countries and to survival of their businesses and in creating and encouraging an atmosphere for the wide adoption and success of e-commerce in the long term. the investment for implementing e-commerce in the public sector is one of the areas which is focused in government‘s action plan for cross-disciplinary it development and e-readiness in go...

Calculation Technology Diffusion in Upstream and It’s Effect on the Cost of Oil and Gas Production in Iran

In this study, the impact of technological improvement and depletion in upstream sector on the average cost of oil and gas production in Iran is studied in 1967-2017. For this purpose, global technology diffusion trend is calculated, so five variables that have had the most effect on global upstream is considered. Using acquired trend for technology and taking other related determinants into ac...

full text

the impact of training on second language writing assessment: a case of raters’ biasedness

چکیده هدف اول این تحقیق بررسی تأثیر آموزش مصحح بر آموزش گیرندگان براساس پایایی نمره های آنها در پنج بخش شامل محتوا ، سازمان ، لغت ، زبان و مکانیک بود. هدف دوم این بود که بدانیم آیا تفاوتهای بین آموزشی گیرندگان زن و مرد در پایایی نمرات آنها وجود دارد. برای بررسی این موارد ، ما 90 دانشجو در سطح میانه (متوسط) که از طریق تست تعیین سطح شده بودند انتخاب شدند. بعد از آنها خواستیم که درباره دو موضوع ا...

15 صفحه اول

pricing unemployment insurance : the case of iran

employees always concern about losing their job , or in other word , losing their income resources. for this purpose, every government requires strong system for covering these concerns. the unemployment insurance (ui) program’s can be used for achieving this goal. in this thesis, we price ui based on the insurance history of employee and the duration of being unemployed. we use the weibull dis...

My Resources

Save resource for easier access later

Save to my library Already added to my library

{@ msg_add @}


Journal title

volume 15  issue 62

pages  181- 202

publication date 2019-12

By following a journal you will be notified via email when a new issue of this journal is published.

Keywords

No Keywords

Hosted on Doprax cloud platform doprax.com

copyright © 2015-2023