EconPapers    
Economics at your fingertips  
 

Effects of oil price fall on the betas in the Unconventional Oil & Gas Industry

Emanuele Teti, Maurizio Dallocchio and Daniele De Sanctis

Energy Policy, 2020, vol. 144, issue C

Abstract: We examine the consequences of the oil prices movements started in July 2014 on the financial systematic risk – proxied by Betas – of firms operating in the Unconventional Oil & Gas Industry, compared to that of the Conventional Oil & Gas players. The analysis is developed using two cross section regressions, performed before and after the 2014 oil price drop respectively. The results look coherent with the reasonable belief that a sharp and sudden decrease in the oil price can generally lead to higher Betas in the Oil & Gas Industry. Interestingly, it emerged that the market tends to attribute an additional risk to unconventional firms and, analyzing the regression coefficients evolution, it appears that this circumstance has been substantially amplified by the 2014 oil price shock. To our knowledge this is the first paper covering the topic treated.

Keywords: Oil & gas industry; Beta; Prices; Risk (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S030142152030402X
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:144:y:2020:i:c:s030142152030402x

DOI: 10.1016/j.enpol.2020.111673

Access Statistics for this article

Energy Policy is currently edited by N. France

More articles in Energy Policy from Elsevier
Bibliographic data for series maintained by Haili He ().

 
Page updated 2020-10-10
Handle: RePEc:eee:enepol:v:144:y:2020:i:c:s030142152030402x