How do oil producers respond to giant oil field discoveries?

Arbeitspapier

This paper studies how petroleum producers respond to a giant oil field discovery. Using a large panel of country-level production data and a difference-in-differences identification approach, I show that domestic production levels respond before a newly found oil field has come on line, indicating that producers raise extraction rates from existing reservoirs. Given that domestic petroleum consumption rises by less in response to a discovery, at least part of the increase in production seems to go into (net) oil exports. I find substantial heterogeneity in the impulse responses of oil production and consumption with respect to the location and size of a giant oil field and the country's OPEC membership status.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 1704

Classification and Topics

• Classification: Wirtschaft ; Multiple or Simultaneous Equation Models: Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models ; Economic History: Agriculture, Natural Resources, Environment, and Extractive Industries: General, International, or Comparative ; Resource Booms ; Energy: Demand and Supply; Prices
• Subject: Giant oil field discoveries ; Half life of reserves ; Oil production ; OPEC ; Proved reserves

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Güntner, Jochen H. F.
• Event: Veröffentlichung
• (who): Johannes Kepler University of Linz, Department of Economics
• (where): Linz
• (when): 2017

Further information

• Handle: http://hdl.handle.net/10419/162461
• Last update: 10.03.2025, 11:44 AM CET