This research covers the organization of the petroleum exporting countries (OPEC), as oil production (OPROD) is a crucial element in productive national economic structures, measured by active rigs (ARIGS). These economies are highly dependent on petroleum extraction for revenue, export receipts and economic growth. Yet the environmental impacts of this reliance are growing more profound, especially as they relate to sustainability in agriculture, according to
(Alsalman et al., 2023). The extraction of oil adds to GDP but also generates negative externalities that affect Agricultural green total factor productivity (AGTFP), such as soil degradation, water pollution and greenhouse gas emissions (
Razek et al., 2025). These environmental impacts are compounded by the broader effects of climate change, such as erratic rainfall, droughts and rising temperatures, which further threaten agricultural output. Dependence on oil can divert focus and energy away from developing agriculture-based practices
(Chukwuneke et al., 2025). As such, the economic incentive of crude oil extraction needs to be weighed against its environmental impacts, especially in areas where agriculture is central to the rural economy and food security (
Montant, 2025).
However, some studies articulate the general environmental effects of oil production in the literature; empirical research focusing on the impact of ARIGS on AGTFP through OPEC is scarce. There is little studies for the mediation and moderation roles of GDP per capita and population density (POP) in this relationship
(Iqbal et al., 2025). This study addresses these gaps by providing an empirical analysis of the direct and indirect impacts of ARIGS on AGTFP, with a focus on their role in improving agricultural sustainability towards OPEC.
Literature review and hypotheses
The relationship between oil industry activity and agricultural sustainability in OPEC is limiting and represents a substantial research problem. In this study, ARIGS represents the extent of oil exploration and AGTFP considers not only output growth but also environment restrictions. AGTFP is an important statistical indicator for evaluating sustainable agricultural development (
Shanmugan and Prakash, 2018). The association between activity in the oil industry as indicated by ARIGS and AGTFP for OPEC is not straightforward. Although these advanced reservoir intervention gas wells ARIGS enhance OPROD potential (
Ansari, 2017). Industrial and price dynamics that block investment spillovers and therefore price stabilization, indirectly affect AGTFP (
Zhou and Zhang, 2024). These dynamics are a function of the OPEC institutional role.
The Concepts of the resource curse and environmental sustainability among others are part of the theoretical framework
(Omokpariola et al., 2025). However, from an environmental sustainability point of view oil recovery brings land degradation retrieving massive costs with ecosystem stress
(Li et al., 2023). High rig activity levels may negatively affect AGTFP, whereas oil revenues impact GDP positively. Recent studies examine the correlation between climate policy and the oil-agriculture nexus and Find a 6.5% reduction in oil and gas investments while land tenure security has a positive effect AGTFP (
Séogo and Zahonogo, 2023). The use of entropy in the green productivity assessment for China suggests a negative relationship between industrial efficiency and pollution through oil regions, which affected investor behavior to tilt their future investments towards AGTFP and sustainability
(Wang et al., 2024). There is an empirical gap between developed, developing and other countries. In advanced economies, regrowth of environmental standards, cleaner technologies and higher adaptive capacity attenuate degradation effects on any agriculture from rig expansion and climate induced shocks. Limited investment in sustainable agricultural practices, governance issues surrounding land and climate proclivity to increased damage results in extractive action having a net negative influence on agricultural productivity and environmental degradation (
Yu and Deng, 2021) within developing nations where there are less fortified institutions than their developed counterparts. Globally, however, the relationships between ARIGS and AGTFP are determined by the exposure to climate factors, economic structure, GDP and institutional quality (
Kumar and Upadhyay, 2019). Information in OPEC about the dual threats of oil dependence and climate risk about how ARIGS affect AGTFP are sorely lacking. This study addresses this gap.
Conceptual framework
The conceptual framework (Fig 1) illustrates the multifaceted impact of ARIGS on AGTFP, emphasizing both direct and indirect effects.
The direct impact of the ARIGS on AGTFP
The AGTFP in OPEC and ARIGS. An Increase in the significant level of rig activity, along with a price rise, gives a green light for more contribution to CH
4 emission and leads to ground process deterioration. This decreases the AGTFP, especially in regions where these trade-offs are not neutralized by digital innovation
(Xiong et al., 2023). Hypothesis 1: The direct effect of ARIGS on AGTFP is negative and significant in OPEC.
The mediating effect of OPROD
The effect of ARIGS on AGTFP significantly depends on OPEC OPROD, significantly evident imposes a great influence on regional agricultural production. OPROD decisions are determined by global demand and non-OPEC supply. OPEC’s production policy varies with differences in technological advancement and market stability, which affect the economy’s performance (
Cui et al., 2025). This role connects the energy industry to AGTFP and ecosystem management, in line with Hypothesis 2, in which OPROD suggests mediating effects.
The moderating role of GDP and POP
The roles of GDP growth and population are explored among OPEC that depend on fossil fuels. This potentially poses environmental and economic limitations (
Montant, 2025). while GDP revenue also impacts the direction of development. As a result, it exacerbates ecological problems without making serious investments in greener capital. This is consistent with Hypothesis 3, as both POP and GDP moderate the effect of ARIGS on AGTFP.