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U.S. Department of Energy
Office of Scientific and Technical Information

Investment strategy of middle eastern OPEC countries (MEOPEC)

Thesis/Dissertation ·
OSTI ID:6774513

This dissertation examines investment strategies of Middle Eastern OPEC countries. To study investment strategy of MEOPEC, a theoretical structure of OPEC price and production strategy and the role that financial consideration will play in their decisions is presented. By taking the future price of crude oil as a random variable, several investment strategies available to MEOPEC are examined. Furthermore, a model that determines an optimal portfolio based on risk-return criteria is presented. Finally, a general model is constructed for maximizing the wealth of OPEC countries over a period of time. Results of the study indicated that OPEC countries can increase the price of crude oil to $46.84 (in 1980 dollars) until 1985 and, thereafter, they have to reduce the price level to $36.38 in order to provide the needed revenue for their economic development.

OSTI ID:
6774513
Country of Publication:
United States
Language:
English