A supply model for crude oil and natural gas in the Middle East

Abstract

Crude oil (CO) and natural gas (NG) play an important role in the world economy. The Arab countries (ACs) share 64% of the total oil reserves and 40% of the NG reserves [OPEC, 2003. The Annual Statistical Bulletin]. On the production side, ACs contribute to 30% and 9% of the world production of CO and NG, respectively. Accurate forecast models are needed to do better planning and create less risky business environment. In this paper, an econometric model is built to capture the behavior of CO and NG production in the ESCWA1 countries. The model is used to forecast future production trends of CO and NG, and thus provide a powerful tool for researchers, planners and investors working in the energy field.