 Spatial crude oil production divergence and crude oil price behaviour in the United StatesManuel Monge and Luis Gil-Alana Energy, 2021, vol. 232, issue C Abstract: This paper deals with the analysis of (spatial) crude oil production divergence in the United States, paying particular attention to the domestic crude oil production between PADD 2 and PADD 3, which are the areas in which the bottleneck occurs and has a direct implication on the price of West Texas Intermediate (WTI). To this purpose, we use techniques based on fractional integration, fractional cointegration VAR (FCVAR) and wavelet analysis. Monthly data related to the oil production in the U.S. by regions (Anadarko, Appalachia, Bakken, Eagle Ford, Haynesville, Niobrara and Permian) from January 2007 to June 2020 are used. The results, using fractional integration and cointegration techniques, indicate that the time series analyzed are highly persistent and there is evidence of long run equilibrium relationships in some of the series. Finally, using wavelet analysis, we conclude that the most affected areas are Anadarko, Appalachia, Haynesville and Niobrara where an increase in the shale oil production is followed a decrease in WTI crude oil prices. Keywords: Shale oil total production; WTI crude Oil price; Spatial crude oil price divergence; Fractional integration; FCVAR model; Wavelet analysis (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:232:y:2021:i:c:s0360544221012822 DOI: 10.1016/j.energy.2021.121034 Access Statistics for this article Energy is currently edited by Henrik Lund and Mark J. Kaiser More articles in Energy from Elsevier |
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