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Forecasting petroleum drilling outcomes for firms of different sizes operating in the Gulf of Mexico OCS region

Conference ·
OSTI ID:191910
The purpose of this paper is to forecast petroleum drilling activity and outcomes for firms of different sizes using a model of hydrocarbon reserve additions developed for the Gulf of Mexico OCS region. Our empirical results provide evidence of statistically significant diminishing returns on drilling effectiveness with the growing maturity of the OCS region, but are inconclusive, statistically, as to whether technological change boosts drilling effectiveness differently among firms of different sizes. The response of drilling to economic incentives is inelastic among the independents but nearly unitary-elastic for the majors. Overall, there is no persuasive evidence to suggest a less aggressive drilling pace or less efficient hydrocarbon resource development on the Gulf OCS because of an increasing role of independents in the region.
OSTI ID:
191910
Report Number(s):
CONF-951002--
Country of Publication:
United States
Language:
English