Environment and Development of Oil and Gas Fields in Iran: Using Game Theory to Pathology and Gradation of the National Iranian Oil Company’s Performance in Environmental Protection

On the path of development of Iran, Oil industry is like a two-edge razor. It has earned revenue for the country, but on the other hand, it leads undeniable damage to the environment. Undoubtedly, the pollution of the environment imposes additional cost to the country and the inclusion of these costs in the development of oil and gas fields is inevitable. The issue of preserving the environment is addressed in the Iranian constitution explicitly and the government is responsible for implementing this law, while this law has been neglected in the oil industry. This study tries to answer this question why the performance of the National Iran Oil Company as a representative of the government on the subject of environmental issue was not suitable? Game theory as an analytical tool has been used to answer this question and the methods to improve the performance of the NIOC in the environmental issue. The method including the ways of formulating an oil contract and educational and investment policies.