Abstract
Abstract This paper presents an appraisal of the global upstream petroleum industry and its responsiveness to changes in crude oil prices from 1980-2006. Temporal and spatial analysis of E&P operational performance indicators suggests that the current estimated worldwide remaining reserves can sustain current worldwide production rate for at least the next four decades, ceteris paribus. Further, the study shows that for every one dollar drop in real crude oil price, 64 drilling rigs were disengaged, on average, from drilling activity globally from 1980-1989; and 50 of these 64 were disengaged in North America. Further, for every one dollar rise in real oil prices from 19992006, 24 and 29 new rigs were engaged in North America and worldwide, respectively. The study shows that global exploration activity responds asymmetrically to rising and declining real oil prices from 1980-2006. The study also shows that the impact of oil prices on global production has significant spatial and intertemporal differences as well.
Published Version
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call