Forecasting Model of Investment in Upstream Business of Oil Companies

It is important for most oil companies to focus on the core assets which are oil and gas reserves so as to avoid risk posed by some factors such as oil prices and costs, etc. This paper will set up a model related to investment in upstream business based on system dynamics principles and predict the size and structure of investment in upstream business with computer simulation method. It demonstrates that system dynamics can be applied to forecasting oil companies´ upstream investment as a new method and offer bases for decision-making.