IDEAS home Printed from
   My bibliography  Save this paper

The Oil Extraction Puzzle: Theory and Evidence


  • Andrew Pickering


This paper considers the relationship between the extraction rates and remaining reserves of a non-renewable resource. Linear extraction rules are derived wherein the slope term is the same regardless of the cost parameters and market structure whilst differences are captured by the intercept. Using data from the world oil industry the implied test could not be rejected for the case of 1981 but failed using the 1991 and 2000 data. Latterly, either OPEC members are apparently extracting too slowly or non-OPEC countries are extracting too quickly. Three alternative resolutions of this puzzle are offered.

Suggested Citation

  • Andrew Pickering, 2002. "The Oil Extraction Puzzle: Theory and Evidence," Bristol Economics Discussion Papers 02/534, Department of Economics, University of Bristol, UK.
  • Handle: RePEc:bri:uobdis:02/534

    Download full text from publisher

    File URL:
    Download Restriction: no

    Other versions of this item:

    More about this item


    oil extraction; OPEC; non-renewable resource;

    JEL classification:

    • N5 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation


    Access and download statistics


    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:bri:uobdis:02/534. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jonathan Temple). General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.