Understanding the performance of new-well oil production per rig over time and across oil-producing regions serves as an important indicator of current and future production capabilities. As such, this study examines the degree of persistence in response to shocks in new-well production per rig for the six major US oil-producing regions using modified panel ratio tests. The results indicate the instability of new-well production per rig as the degree of persistence changes over time. For companies engaged in the exploration and production of oil, the results highlight the price-taking nature of the industry that is heavily dependent on both physical and financial capital to expand and operate.
|Number of pages
|Energy Sources, Part A: Recovery, Utilization and Environmental Effects
|Published - Jul 17 2016
- Modified panel ratio tests
- US regions
- new-well oil production per rig