JavaScript is disabled for your browser. Some features of this site may not work without it.
An Economic Analysis of Aspects of Petroleum and Military Security in the Persian Gulf

Author
Chapman, Duane; Knanna, Neha
Abstract
Geologic estimates of remaining global petroleum resources place about 50% in the North Sea and Alaska. Using mathematical methods derived from depletion theory, the present value of economic rent from oil is on the order of $20 trillion. Game theory is utilized to explain the $15-$20 per barrel price band that existed from 1986 to 1999. New economic forces have displaced this previously stable pattern; a new price range of $22 to $28 may be emerging. International trade in petroleum and conventional weapons are analyzed with econometric methods; the occurrence of nuclear weapons capability in the Persian Gulf region is explored.
Description
WP 2000-07 April 2000
Date Issued
2000-04-11Publisher
Charles H. Dyson School of Applied Economics and Management, Cornell University
Type
article