Amin Gharehyakheh - Department of Economic Engineering, University of Economic Science Tehran, I.R. Iran
Mohammadreza Monjazeb - Department of Economic Engineering, University of Economic Science Tehran, I.R. Iran

In this research an econometric model is developed in order to demonstrate trend of the worldwide crude oil consumption. I.R. Iran crude oil production, nominal price of crude, worldwide proven crude oil reserves and world population are the independent variables in this model. All variables have been analyzed around half of century from 1965 to 2010 separately. In this research, it has been demonstrated that if crude oil production of I.R. Iran, which is one the highest amount of the production in OPEC members and all over the world, raises, the worldwide crude oil consumption will increase, and this issue has no impact of I.R. Iran crude oil import. Nominal price of crude oil has been used as an independent variable in order to make currency rate increase ineffective in fluctuation of the price of crude oil. People have a significant effect on world crude oil consumption directly and indirectly, and this makes put world population as one of the independent variables. Amount of proven crude oil reserves which make the governments consider other energy sources have been considered as an effective and independent variable in the model. Results of the model show positive effects of these variables on worldwide crude oil consumption.

Econometric model; crude oil consumption; fossil fuel