A Framework for Identifying Effective Drivers on the Future of Financing Methods in the Iranian Oil Industry

The oil industry is one of the key drivers in the economy of Iran and the world. Every year, many projects are defined and implemented in this industry. Without proper financing and the use of efficient financing methods, the success of this industry for the exploration, production, profitability and development of the value chain is impossible. The future of financing and its methods are completely changing under the influence of financial technology and new trends. Therefore, the present study seeks to identify the drivers that affect the future of financing methods in the oil industry.

The present study is applied in terms of orientation and a quantitative multi method from a methodological point of view. In this study, two quantitative methods of Best-worst and Copras were used to analyze the data. The theoretical community consisted of managers and senior experts in the field of financing oil projects. The sample size in this study was 10 people and sampling was done by judgment. To collect research data, three questionnaires of expertise, pairwise comparison and prioritization were used.

At first, research drivers were extracted using analytical literature review. Twenty-five drivers were screened using Binominal test and eight drivers were selected for final prioritization due to a significance coefficient of less than 5%. The remaining drivers were prioritized using the Copras technique, taking into account the three indicators of severity, degree of certainty, and expertise. The best-worst method was used to weight the indices and the degree of certainty index (0.542) had the highest weight. Finally, Copras analysis showed that the drivers of investment risks in the country, the situation of the capital market in Iran and legal and sharia restrictions in the field of financing and investment, respectively, had the highest priority in terms of influencing the future of financing methods of the oil industry.

Research proposals were presented with respect to important drives. The most important suggestions of this study were: considering the nature of project risks to choose the appropriate financing method, improving the capital market for foreign investors, removing legal barriers and adjusting legal restrictions to encourage investment and project financing, supporting fintechs by traditional financial institutions and finally, the efforts of diplomacy stakeholders to resolve foreign sanctions and restrictions.