IDEAS home Printed from https://ideas.repec.org/a/eee/resene/v45y2016icp80-98.html
   My bibliography  Save this article

Information spillovers in onshore oil and gas exploration

Author

Listed:
  • Levitt, Clinton J.

Abstract

I investigate information externalities in onshore oil and gas exploration using data from Alberta, Canada. I use information in the drilling histories of firms exploring Alberta for oil and gas to estimate various models of exploration rates. The objective is to study how the outcomes of previous exploration decisions, under both private-information and public-information assumptions, as well as timing, influence firms’ exploration rates across Alberta. The results show that firms’ exploration rates were influenced by both its own drilling history as well as by the outcomes of other firms. The drilling histories of other firms had important effects on a firm's decision to explore a region if the firm had yet to start exploring that region. However, once a firm had started to explore a region, the outcomes of rivals were less important than the firm's own outcomes. Additional results provide an interesting characterization of the different factors that affect firms’ exploration decisions.

Suggested Citation

  • Levitt, Clinton J., 2016. "Information spillovers in onshore oil and gas exploration," Resource and Energy Economics, Elsevier, vol. 45(C), pages 80-98.
  • Handle: RePEc:eee:resene:v:45:y:2016:i:c:p:80-98
    DOI: 10.1016/j.reseneeco.2016.05.003
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0928765516301269
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.reseneeco.2016.05.003?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Wooldridge, Jeffrey M., 1999. "Distribution-free estimation of some nonlinear panel data models," Journal of Econometrics, Elsevier, vol. 90(1), pages 77-97, May.
    2. Porter, Robert H, 1995. "The Role of Information in U.S. Offshore Oil and Gas Lease Auctions," Econometrica, Econometric Society, vol. 63(1), pages 1-27, January.
    3. Ryan Kellogg, 2014. "The Effect of Uncertainty on Investment: Evidence from Texas Oil Drilling," American Economic Review, American Economic Association, vol. 104(6), pages 1698-1734, June.
    4. Papke, Leslie E., 1991. "Interstate business tax differentials and new firm location : Evidence from panel data," Journal of Public Economics, Elsevier, vol. 45(1), pages 47-68, June.
    5. Hausman, Jerry & Hall, Bronwyn H & Griliches, Zvi, 1984. "Econometric Models for Count Data with an Application to the Patents-R&D Relationship," Econometrica, Econometric Society, vol. 52(4), pages 909-938, July.
    6. Hendricks, Kenneth & Porter, Robert H & Boudreau, Bryan, 1987. "Information, Returns, and Bidding Behavior in OCS Auctions: 1954-1969," Journal of Industrial Economics, Wiley Blackwell, vol. 35(4), pages 517-542, June.
    7. Lin, C.-Y. Cynthia, 2009. "Estimating strategic interactions in petroleum exploration," Energy Economics, Elsevier, vol. 31(4), pages 586-594, July.
    8. Mead, Walter J & Moseidjord, Asbjorn & Sorensen, Philip E, 1984. "Competitive Bidding under Asymmetrical Information: Behavior and Performance in Gulf of Mexico Drainage Lease Sales, 1959-1969," The Review of Economics and Statistics, MIT Press, vol. 66(3), pages 505-508, August.
    9. Hendricks, Kenneth & Porter, Robert H, 1996. "The Timing and Incidence of Exploratory Drilling on Offshore Wildcat Tracts," American Economic Review, American Economic Association, vol. 86(3), pages 388-407, June.
    10. Knight, Oliver, 1956. "Oil — Canada's New Wealth," Business History Review, Cambridge University Press, vol. 30(3), pages 297-328, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bøe, Kristine S. & Jordal, Therese & Mikula, Štepán & Molnár, Peter, 2019. "Do political risks harm development of oil fields?," Journal of Economic Behavior & Organization, Elsevier, vol. 157(C), pages 338-358.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Evan M. Herrnstadt & Ryan Kellogg & Eric Lewis, 2020. "The Economics of Time-Limited Development Options: The Case of Oil and Gas Leases," Working Papers 2020-66, Becker Friedman Institute for Research In Economics.
    2. Lin, C.Y. Cynthia, 2009. "Do Firms Interact Strategically?," Working Papers 225896, University of California, Davis, Department of Agricultural and Resource Economics.
    3. Holl, Adelheid, 2004. "Manufacturing location and impacts of road transport infrastructure: empirical evidence from Spain," Regional Science and Urban Economics, Elsevier, vol. 34(3), pages 341-363, May.
    4. Branstetter, Lee & Chatterjee, Chirantan & Higgins, Matthew J., 2022. "Generic competition and the incentives for early-stage pharmaceutical innovation," Research Policy, Elsevier, vol. 51(10).
    5. Miguel C. Manjon-Antolin & Josep Maria Arauzo-Carod, 2006. "Locations and Relocations: Modelling, Determinants, and Interrelations," ERSA conference papers ersa06p33, European Regional Science Association.
    6. Xuepeng Liu, 2009. "GATT/WTO Promotes Trade Strongly: Sample Selection and Model Specification," Review of International Economics, Wiley Blackwell, vol. 17(3), pages 428-446, August.
    7. David M. Drukker, 2009. "Generalized method of moments estimators in Stata," DC09 Stata Conference 0, Stata Users Group.
    8. Lee, Seunghyun, 2022. "Effects of Wet Spring on Prevented Planting," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322348, Agricultural and Applied Economics Association.
    9. Alona Zharova & Janine Tellinger-Rice & Wolfgang Karl Härdle, 2018. "How to measure the performance of a Collaborative Research Center," Scientometrics, Springer;Akadémiai Kiadó, vol. 117(2), pages 1023-1040, November.
    10. Marius Brülhart & Mario Jametti & Kurt Schmidheiny, 2012. "Do agglomeration economies reduce the sensitivity of firm location to tax differentials?," Economic Journal, Royal Economic Society, vol. 122(563), pages 1069-1093, September.
    11. Bose-Duker, Theophiline & Henry, Michael & Strobl, Eric, 2021. "Child fostering and the educational outcomes of Jamaican children," International Journal of Educational Development, Elsevier, vol. 87(C).
    12. Kim, Hyungtai & Ahn, Sanghoon & Ulfarsson, Gudmundur F., 2018. "Transportation infrastructure investment and the location of new manufacturing around South Korea's West Coast Expressway," Transport Policy, Elsevier, vol. 66(C), pages 146-154.
    13. Xavier Giroud & Joshua Rauh, 2015. "State Taxation and the Reallocation of Business Activity: Evidence from Establishment-Level Data," NBER Working Papers 21534, National Bureau of Economic Research, Inc.
    14. Hsu, Kuang-Chung & Wright, Michael & Zhu, Zhen, 2017. "What motivates merger and acquisition activities in the upstream oil & gas sectors in the U.S.?," Energy Economics, Elsevier, vol. 65(C), pages 240-250.
    15. D'Al, Francesco & Santarelli, Enrico & Vivarelli, Marco, 2024. "The KSTE+I approach and the advent of AI technologies: evidence from the European regions," GLO Discussion Paper Series 1473, Global Labor Organization (GLO).
    16. Duncan, Kevin Davey, 2020. "Three papers in regional dynamics and panel econometrics," ISU General Staff Papers 202001010800009129, Iowa State University, Department of Economics.
    17. Benjamin A. Olken & Monica Singhal, 2011. "Informal Taxation," American Economic Journal: Applied Economics, American Economic Association, vol. 3(4), pages 1-28, October.
    18. Weidner, Martin & Zylkin, Thomas, 2021. "Bias and consistency in three-way gravity models," Journal of International Economics, Elsevier, vol. 132(C).
    19. Schwab, Thomas & Todtenhaupt, Maximilian, 2021. "Thinking outside the box: The cross-border effect of tax cuts on R&D," Journal of Public Economics, Elsevier, vol. 204(C).
    20. Huang, Kenneth G. & Jia, Nan & Ge, Yeyanran, 2024. "Forced to innovate? Consequences of United States' anti-dumping sanctions on innovations of Chinese exporters," Research Policy, Elsevier, vol. 53(1).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:resene:v:45:y:2016:i:c:p:80-98. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/505569 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.