IDEAS home Printed from https://ideas.repec.org/a/bla/coecpo/v19y2001i4p371-381.html
   My bibliography  Save this article

An Economic Analysis Of Aspects Of Petroleum And Military Security In The Persian Gulf

Author

Listed:
  • Duane Chapman
  • Neha Khanna

Abstract

Geologic estimates of remaining global petroleum resources place about 50% in the Persian Gulf. Production costs are estimated at $5 per barrel there and $15 per barrel in the North Sea and Alaska. According to mathematical results derived from depletion theory, the present value of economic rent from oil is on the order of $20 trillion. This article uses game theory 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 $23-$30 is 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. Copyright 2001 Western Economic Association International.

Suggested Citation

  • Duane Chapman & Neha Khanna, 2001. "An Economic Analysis Of Aspects Of Petroleum And Military Security In The Persian Gulf," Contemporary Economic Policy, Western Economic Association International, vol. 19(4), pages 371-381, October.
  • Handle: RePEc:bla:coecpo:v:19:y:2001:i:4:p:371-381
    as

    Download full text from publisher

    File URL: http://www.blackwell-synergy.com/doi/abs/10.1093/cep/19.4.371
    File Function: link to full text
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. D. Chapman & N. Khanna, 2000. "World oil: the growing case for international policy," Contemporary Economic Policy, Western Economic Association International, vol. 18(1), pages 1-13, January.
    2. Basu, Arnab K. & Chau, Nancy H. & Grote, Ulrike, 2000. "Guaranteed Manufactured Without Child Labor," Working Papers 179542, Cornell University, Department of Applied Economics and Management.
    3. Chapman, Duane & Khanna, Neha, 1999. "World Oil: The Growing Case For International Policy," Working Papers 7232, Cornell University, Department of Applied Economics and Management.
    4. M. A. Adelman, 1986. "The Competitive Floor to World Oil Prices," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 9-31.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Slaibi, Ahmad & Chapman, Duane & Daouk, Hazem, 2005. "An Econometric Evaluation of A Geopolitical Theory of Oil Price Behavior," Working Papers 127131, Cornell University, Department of Applied Economics and Management.
    2. Khalid Kisswani, 2014. "OPEC and political considerations when deciding on oil extraction," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 38(1), pages 96-118, January.
    3. Chapman, Duane, 2001. "A Review of the New Undiscovered Conventional Crude Oil Resource Estimates and their Economic and Environmental Implications," Working Papers 127669, Cornell University, Department of Applied Economics and Management.
    4. Chapman, Duane, 2001. "A Review of the New Undisclosed Conventional Crude Oil Resource Estimates and their Economic and Environmental Implications," Working Papers 179573, Cornell University, Department of Applied Economics and Management.
    5. Neha Khanna & Duane Chapman, 2010. "Guns And Oil: An Analysis Of Conventional Weapons Trade In The Post-Cold War Era," Economic Inquiry, Western Economic Association International, vol. 48(2), pages 434-459, April.
    6. Bharati, Rakesh & Crain, Susan J. & Kaminski, Vincent, 2012. "Clustering in crude oil prices and the target pricing zone hypothesis," Energy Economics, Elsevier, vol. 34(4), pages 1115-1123.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:coecpo:v:19:y:2001:i:4:p:371-381. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum). General contact details of provider: http://edirc.repec.org/data/weaaaea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.