The Wade Formula and the oil price fluctuation: An Optimal Control Theory approach

TL;DR

This paper introduces an optimal control theory model based on the Wade Formula to analyze and influence oil price fluctuations, emphasizing energy diversification policies to stabilize prices.

Contribution

It presents a novel application of optimal control theory to the Wade Formula for modeling and controlling oil price dynamics.

Findings

Supporting energy diversification can help stabilize oil prices.

Control parameters can be adjusted to reduce oil prices.

The model provides a framework for policy implementation.

Abstract

By considering the Wade Formula, we propose a model to study the evolution of the oil price per barrel. Our model shows that the policy of diversification of the energy is to be supported. This model is proposed to see how it is possible to control parameters so that the oil price should decrease.