Investigating the relationship between security of crude oil exports demand and investment in the upstream oil industry in OPEC member countries

The efforts of oil importing countries to transfer from fossil fuels to non-fossil fuels and the feasibility of commercial exploitation of unconventional oil and gas reserves can jeopardize the security of demand for crude oil by exporting countries. . In this study, by calculating the oil demand risk index from OPEC member countries during the years 2000-2014, the relationship between this variable and the price of oil by investing in the upstream sector of the oil industry of these countries during the years (2000-2012) Using panel data model with random effects has been investigated. The results show that the effect of the index of risk of demand for oil exports on investment in the upstream sector of the oil industry is negative and this effect is significant. Therefore, given the coefficient of the risk index of demand for oil exports, it can be concluded that a percentage change in the risk of demand for oil exports makes up 0.51percent of investment in the upstream sector of the oil industry in the opposite direction. In addition, the effect of oil prices on investment in the upstream of the oil industry is positive, so that a 1percent change in oil prices changes 1،12percent of investment in the upstream sector of the oil industry in the same direction.