How do oil producers respond to giant oil field discoveries?
Jochen Güntner ()
No 2017-04, Economics working papers from Department of Economics, Johannes Kepler University Linz, Austria
This paper studies how petroleum producers respond to a giant oil field discovery. Using a large panel of country-level production data and a difference-in-differences identification approach, I show that domestic production levels respond before a newly found oil field has come on line, indicating that producers raise extraction rates from existing reservoirs. Given that domestic petroleum consumption rises by less in response to a discovery, at least part of the increase in production seems to go into (net) oil exports. I find substantial heterogeneity in the impulse responses of oil production and consumption with respect to the location and size of a giant oil field and the country’s OPEC membership status.
Keywords: Giant oil field discoveries; Half life of reserves; Oil production; OPEC; Proved reserves (search for similar items in EconPapers)
JEL-codes: C32 N50 Q33 Q41 (search for similar items in EconPapers)
Pages: 37 pages
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Journal Article: How do oil producers respond to giant oil field discoveries? (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:jku:econwp:2017_04
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