An Econometric Model of Oil and Gas Exploration Development and Production in the UK Continental Shelf

A Systems Approach

Research output: Contribution to journalArticle

9 Citations (Scopus)

Abstract

The petroleum supply process takes place in stages. Decisions at any stage are based on information obtained at the preceding stage. The present paper develops an econometric model incorporating the feedback structure of the process. The model framework consists of a system of simultaneous equations. Using UKCS data the model was estimated, tested for stability and predictive power, and used to conduct a structural analysis, investigating the effects of market conditions on activity levels in a mature hydrocarbon province. The results provide useful insights into the feedback nature of the petroleum supply process and the importance of market conditions to continued activity levels in a mature province.

Original languageEnglish
Pages (from-to)113-141
Number of pages29
JournalThe Energy Journal
Volume24
Issue number2
Publication statusPublished - Apr 2003

Keywords

  • lower 48-states
  • natural-gas
  • investment
  • price

Cite this

@article{5f2ec278300d407ba4e9add781ac988b,
title = "An Econometric Model of Oil and Gas Exploration Development and Production in the UK Continental Shelf: A Systems Approach",
abstract = "The petroleum supply process takes place in stages. Decisions at any stage are based on information obtained at the preceding stage. The present paper develops an econometric model incorporating the feedback structure of the process. The model framework consists of a system of simultaneous equations. Using UKCS data the model was estimated, tested for stability and predictive power, and used to conduct a structural analysis, investigating the effects of market conditions on activity levels in a mature hydrocarbon province. The results provide useful insights into the feedback nature of the petroleum supply process and the importance of market conditions to continued activity levels in a mature province.",
keywords = "lower 48-states, natural-gas, investment, price",
author = "Kasim, {Sola Abass} and Kemp, {Alexander George}",
year = "2003",
month = "4",
language = "English",
volume = "24",
pages = "113--141",
journal = "The Energy Journal",
issn = "0195-6574",
publisher = "International Association for Energy Economics",
number = "2",

}

TY - JOUR

T1 - An Econometric Model of Oil and Gas Exploration Development and Production in the UK Continental Shelf

T2 - A Systems Approach

AU - Kasim, Sola Abass

AU - Kemp, Alexander George

PY - 2003/4

Y1 - 2003/4

N2 - The petroleum supply process takes place in stages. Decisions at any stage are based on information obtained at the preceding stage. The present paper develops an econometric model incorporating the feedback structure of the process. The model framework consists of a system of simultaneous equations. Using UKCS data the model was estimated, tested for stability and predictive power, and used to conduct a structural analysis, investigating the effects of market conditions on activity levels in a mature hydrocarbon province. The results provide useful insights into the feedback nature of the petroleum supply process and the importance of market conditions to continued activity levels in a mature province.

AB - The petroleum supply process takes place in stages. Decisions at any stage are based on information obtained at the preceding stage. The present paper develops an econometric model incorporating the feedback structure of the process. The model framework consists of a system of simultaneous equations. Using UKCS data the model was estimated, tested for stability and predictive power, and used to conduct a structural analysis, investigating the effects of market conditions on activity levels in a mature hydrocarbon province. The results provide useful insights into the feedback nature of the petroleum supply process and the importance of market conditions to continued activity levels in a mature province.

KW - lower 48-states

KW - natural-gas

KW - investment

KW - price

M3 - Article

VL - 24

SP - 113

EP - 141

JO - The Energy Journal

JF - The Energy Journal

SN - 0195-6574

IS - 2

ER -