Economic and Mathematical Modeling of Territorial Conditions for the Integration of Production Activities for the Extraction and Refining of Oil

Abstract

Territorial conditions for the integration of production activities for the extraction and processing of oil in the modern global world have became as a critical issue. The most striking feature of the placement of oil reserves is their high concentration in one relatively small region - the Persian Gulf basin. Here, in the Arab monarchies of Iran and Iraq,
almost 2/3 of proven reserves are concentrated, and most of them (more than 2/5 of world reserves) are in three Arabian countries with a small indigenous population - Saudi Arabia, Kuwait and the United Arab Emirates. Even with the huge number of foreign workers who flooded these countries in the second half of the twentieth century, there are just over 20 million people, 0.3% of the world's population. Among the countries with very large reserves (more than 10 billion tons in each, or more than 6% of the world) are Iraq, Iran and Venezuela. These countries have long had a significant population and a more or less developed economy, and Iran and Iraq are the oldest centers of world civilization. Therefore, the high concentration of oil reserves in them does not look unfair, as in the three Arabian
monarchies, where yesterday’s illiterate and semi-wild nomads and herders are swimming in oil and petrodollars. The Organization for Economic Cooperation and Development includes 29 economically developed countries. It includes Australia, Austria, Belgium, Great Britain, Hungary, Germany, Greece, Denmark, Ireland, Iceland, Spain, Spain, Italy, Canada, Luxembourg, Mexico, the Netherlands, New Zealand, Norway, Poland, Portugal, the United States, Turkey, Finland, France, Sweden, Czech Republic, Switzerland, South Korea, Japan. The organization of the countries of oil exporters includes Indonesia, Iran, Iraq, Qatar, Kuwait, the United Arab Emirates, Saudi Arabia, Algeria, Libya, Nigeria, Venezuela. The aim of this work is to investigate present conditions particularly territorial conditions to production activities integration in order to the extraction and processing of oil which are the main factor in increasing the productivity of this sector of the economy.