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The Effect of Oil Prices on Field Production: Evidence from the Norwegian Continental Shelf
Author(s) -
Mauritzen Johannes
Publication year - 2017
Publication title -
oxford bulletin of economics and statistics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.131
H-Index - 73
eISSN - 1468-0084
pISSN - 0305-9049
DOI - 10.1111/obes.12138
Subject(s) - norwegian , barrel (horology) , production (economics) , oil field , submarine pipeline , oil production , oil price , environmental science , field (mathematics) , economics , petroleum engineering , oceanography , geology , mathematics , monetary economics , geography , macroeconomics , philosophy , linguistics , archaeology , pure mathematics
Abstract I use detailed field‐level data on Norwegian offshore oil production and a semi‐parametric additive model to control for the production profile of fields to estimate the effect of oil prices on production. I find no significant evidence of a concurrent reaction of field production to oil prices, though a modest lagged effect is found of the magnitude of approximately 2% to 7% for a $10 per barrel increase in the real price of oil.