An Economic Assessment of Natural Gas Injection to Oil Extracting in Iran

Subject Areas : Financial Economics

Aliasghar Esmaeelnia ¹ , Shirin Sadjadi ²

1 - استادیار دانشگاه ازاد اسلامی واحد تهران مرکزی
2 - کارشناس ارشد اقتصاد انرژی

Received: 2015-06-14 Accepted : 2015-06-14 Published : 2008-03-20

Keywords:

Abstract :

In this paper we want to evaluate between gas injections to oil well instead of exporting or domestic consumption policy based on the linear planning model. According to the most studies, the oil wells conservation will be depleted in the next future. So achievement of the maximum utilization from this limited energy resource is very important. The findings indicate that the natural gas with its specifications should be used as a suitable substitution to crude oil. On the other hand, prevention from decrease of the process of oil production is one of the crucial issues of oil resources of Iran, and injection of natural gas can prevent from hiding of crude oil in limestone with split. After allocating natural gas to domestic uses, whatever remains out of total imports and domestic production is balance which can be used for injection to oil wells or to export. But through the linear planning model applied in this research, the profit resulted from injection of one cubic meter of natural gas to an oil well is 23/12 cents and the profit made out of export of it at price of 22/20 cents is equal to 13/74 cents. Therefore the state national benefit will be maximum when the most possible amount of the remaining natural gas is used for injection and the rest amount for export.