The Discovery and Extraction of Crude Oil in the US: An Econometric Model

Angelos Pagoulatos, Emilio Pagoulatos and David Debertin (deberti@uky.edu)

No 158500, Staff Papers from University of Kentucky, Department of Agricultural Economics

Abstract: The objective of this paper is to examine the responsiveness to price incentives of petroleum exploration, the generation of proven reserves and the production out of reserves in the United States. First, a theoretical framework of oil extraction and supply is developed. Next, an econometric model consisting of 11 stochastic equations and identities represents the decision processes affecting the supply of new discoveries, the increase of proven reserves and the production out of reserves. The parameters of the structural relationships are simultaneously determined and are estimated by three-stage least squares. Finally, the sample-period performance and predictability of the model are evaluated.

Keywords: Demand and Price Analysis; Research Methods/ Statistical Methods; Resource/Energy Economics and Policy (search for similar items in EconPapers)
Pages: 25
Date: 1977-08
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:ukysps:158500

DOI: 10.22004/ag.econ.158500

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