The Effect of Oil Prices on Offshore Production: Evidence from the Norwegian Continental Shelf

66 Pages Posted: 6 Mar 2014

Date Written: February 28, 2014

Abstract

I use detailed field-level data on Norwegian off-shore oil field production and a semi-parametric additive model to control for the production profile of fields to estimate the effect of oil prices on production. I find no significant evidence of a concurrent reaction of field production to oil prices, though a slight lagged effect is found of the magnitude of approximately 2 to 4% for a 10 dollar per barrel increase in the real price of oil. Most of this effect appears to come in the planning phase of a field’s development.

Keywords: Oil prices, offshore production

JEL Classification: Q00, Q40

Suggested Citation

Mauritzen, Johannes, The Effect of Oil Prices on Offshore Production: Evidence from the Norwegian Continental Shelf (February 28, 2014). NHH Dept. of Business and Management Science Discussion Paper No. 2014/7, Available at SSRN: https://ssrn.com/abstract=2404980 or http://dx.doi.org/10.2139/ssrn.2404980

Johannes Mauritzen (Contact Author)

NHH Norwegian School of Economics ( email )

Helleveien 30
Bergen, NO-5045
Norway

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