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Information spillovers in onshore oil and gas exploration

Citation

Levitt, C, Information spillovers in onshore oil and gas exploration , Resource and Energy Economics, 45 pp. 80-98. ISSN 0928-7655 (2016) [Refereed Article]

Copyright Statement

Crown Copyright © 2016

DOI: doi:10.1016/j.reseneeco.2016.05.003

Abstract

I investigate information externalities in onshore oil and gas exploration using data from Alberta, Canada. I use information in the drilling histories of firms exploring Alberta for oil and gas to estimate various models of exploration rates. The objective is to study how the outcomes of previous exploration decisions, under both private-information and public-information assumptions, as well as timing, influence firmsí exploration rates across Alberta. The results show that firmsí exploration rates were influenced by both its own drilling history as well as by the outcomes of other firms. The drilling histories of other firms had important effects on a firmís decision to explore a region if the firm had yet to start exploring that region. However, once a firm had started to explore a region, the outcomes of rivals were less important than the firmís own outcomes. Additional results provide an interesting characterization of the different factors that affect firmsí exploration decisions.

Item Details

Item Type:Refereed Article
Keywords:Exploration, Oil, Natural gas, Information
Research Division:Economics
Research Group:Applied Economics
Research Field:Environment and Resource Economics
Objective Division:Energy
Objective Group:Energy Exploration
Objective Field:Oil and Gas Exploration
Author:Levitt, C (Dr Clinton Levitt)
ID Code:111110
Year Published:2016
Deposited By:Tasmanian School of Business and Economics
Deposited On:2016-08-30
Last Modified:2017-11-22
Downloads:0

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