A Model for Converting Oil and Gas Revenues into Sustainable Income Using Economic Security Principles

Abstract

Economic security has become a crucial concept in the modern world, attracting considerable attention from policymakers across various fields. This paper delves into one of the major challenges faced by oil-producing countries: transforming oil and gas revenues into sustainable income within the framework of economic security. We first introduce different methods for converting oil revenues into sustainable income. Subsequently, we employ the Ordered Priority Approach (OPA) and consult with a specialized community to assign weights to these methods based on established economic security criteria. Among the six methods evaluated, the approach involving forward contracts and the establishment of oil funds receives the highest score, identifying it as the most suitable method for converting oil revenues into sustainable income within the context of economic security. Based on our findings, employing a combination of diverse methods while emphasizing investment-based strategies and adhering to economic security principles can significantly contribute to enhancing a country's long-term economic security. This is particularly relevant for countries heavily reliant on oil and gas revenues