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The Long Road to First Oil

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  • Mihalyi, David

Abstract

This paper analyzes the factors affecting the speed at which newly discovered oil and gas fields are developed. Using data from over 25,000 oil and gas assets globally I demonstrate that both asset and country characteristics are critical in determining which assets reach production stage. I analyze the effects of countries adopting a set of market oriented reforms, to shed light on the impacts of institutional changes on petroleum extraction timeline. Mitigating climate change will require a large share of the world's already discovered fossil resources to stay underground. The results of this study can help inform how petroleum producers may respond to the energy transition underway. My findings also calls into question the assumption used in earlier research that giant oil and gas discoveries can be considered exogenous in their impacts on subsequent production.

Suggested Citation

  • Mihalyi, David, 2020. "The Long Road to First Oil," MPRA Paper 103725, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:103725
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    References listed on IDEAS

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    More about this item

    Keywords

    resource curse; natural resources; oil discovery; institutions; liberalization;
    All these keywords.

    JEL classification:

    • P50 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - General
    • Q33 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Resource Booms (Dutch Disease)
    • Q35 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Hydrocarbon Resources

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