The oil extraction puzzle: theory and evidence
This paper considers the relationship between the extraction rates and remaining reserves of a non-renewable resource. Under general conditions the derived extraction rule is firstly linear, and secondly exhibits a slope term common to all extractors regardless of pricing behaviour and costs whilst differences are captured by the intercept. Data from the world oil industry supports the hypothesis of linearity but the implied test was rejected in some cases. Latterly, it appears that either OPEC members are discounting at a higher rate than the competitive fringe or they are overstating their reserve levels.
|Date of creation:||04 Jun 2003|
|Contact details of provider:|| Postal: Office of the Secretary-General, Rm E35, The Bute Building, Westburn Lane, St Andrews, KY16 9TS, UK|
Phone: +44 1334 462479
Web page: http://www.res.org.uk/society/annualconf.asp
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:ecj:ac2003:166. 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: (Christopher F. Baum)
If references are entirely missing, you can add them using this form.