Arbeitspapier
Understanding Rig Rates
We examine the largest cost component in offshore development projects, drilling rates, which have been high in recent years. To our knowledge, rig rates have not been analysed empirically before in the economic literature. Using econometric analysis, we examine the effects of gas and oil prices, rig capacity utilisation, contract length and lead time, and rig-specific characteristics on Gulf of Mexico rig rates. Having access to a unique data set containing contract information, we are able to estimate how contract parameters crucial to the relative bargaining power between rig owners and oil and gas companies affect rig rates. Our econometric framework is a single equation random effects model, in which the systematic part of the equation is non-linear in the parameters. Such a model belongs to the class of non-linear mixed models, which has been heavily utilised in the biological sciences.
- Language
-
Englisch
- Bibliographic citation
-
Series: CESifo Working Paper ; No. 4532
- Classification
-
Wirtschaft
Methodological Issues: General
Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models
Transactional Relationships; Contracts and Reputation; Networks
Mining, Extraction, and Refining: Hydrocarbon Fuels
Energy: General
- Subject
-
rig rates
oil and gas drilling
oil and gas prices
- Event
-
Geistige Schöpfung
- (who)
-
Osmundsen, Petter
Rosendahl, Knut Einar
Skjerpen, Terje
- Event
-
Veröffentlichung
- (who)
-
Center for Economic Studies and ifo Institute (CESifo)
- (where)
-
Munich
- (when)
-
2013
- Handle
- Last update
-
10.03.2025, 11:42 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Osmundsen, Petter
- Rosendahl, Knut Einar
- Skjerpen, Terje
- Center for Economic Studies and ifo Institute (CESifo)
Time of origin
- 2013
Other Objects (12)
Understanding rig rates
Rig Rates and Drilling Speed: Reinforcing Effects
Modelling and forecasting rig rates on the Norwegian Continental Shelf
Rig Services and Taxation
Understanding forecast failure of ESTAR models of real exchange rates
Understanding international long-term interest rate comovement
Innovation in the Supply and Procurement of Rig Services
Jobs in Springfield, Massachusetts: Understanding and remedying the causes of low resident employment rates
Understanding informality
Understanding Cryptocurrencies
Understanding persistence
Understanding the time variation in exchange rate pass-through to import prices
Understanding rig rates
Rig Rates and Drilling Speed: Reinforcing Effects
Modelling and forecasting rig rates on the Norwegian Continental Shelf
Rig Services and Taxation
Understanding forecast failure of ESTAR models of real exchange rates
Understanding international long-term interest rate comovement
Innovation in the Supply and Procurement of Rig Services
Jobs in Springfield, Massachusetts: Understanding and remedying the causes of low resident employment rates
Understanding informality
Understanding Cryptocurrencies
Understanding persistence
Understanding the time variation in exchange rate pass-through to import prices
Understanding rig rates
Rig Rates and Drilling Speed: Reinforcing Effects
Modelling and forecasting rig rates on the Norwegian Continental Shelf
Rig Services and Taxation
Understanding forecast failure of ESTAR models of real exchange rates
Understanding international long-term interest rate comovement
Innovation in the Supply and Procurement of Rig Services
Jobs in Springfield, Massachusetts: Understanding and remedying the causes of low resident employment rates
Understanding informality
Understanding Cryptocurrencies
Understanding persistence