A Regional Model of Oil and Gas Exploration in the Ukcs

24 Pages Posted: 8 May 2006

See all articles by Alexander G. Kemp

Alexander G. Kemp

Aberdeen Centre for Research in Energy Economics and Finance, University of Aberdeen

Sola Kasim

University of Aberdeen - Business School

Abstract

Existing exploration-discovery models are generally characterised by equations describing the behaviour of exploration, success rates, and discoveries. The present paper adds two equations describing the behaviour of finding costs and exploration efficiency. The model was disaggregated along regional lines. Applying the model to UK Continental Shelf data over the period 1964-2002 produced results that supported the new approach. Analysis of the model dynamics and simulation forecast reveals similarities, but also important differences in the responsiveness of activity in the regions to policy multipliers, implying that uniform policy instruments will produce unequal responses in areas with different levels of maturity.

Suggested Citation

Kemp, Alexander G. and Kasim, Sola, A Regional Model of Oil and Gas Exploration in the Ukcs. Scottish Journal of Political Economy, Vol. 53, No. 2, pp. 198-221, May 2006, Available at SSRN: https://ssrn.com/abstract=893333 or http://dx.doi.org/10.1111/j.1467-9485.2006.00376.x

Alexander G. Kemp (Contact Author)

Aberdeen Centre for Research in Energy Economics and Finance, University of Aberdeen ( email )

Edward Wright Building
Dunbar Street
Old Aberdeen AB24 3QY, Scotland AB24 3QY
United Kingdom
(0)1224 272168 (Phone)
(0)1224 272181 (Fax)

Sola Kasim

University of Aberdeen - Business School ( email )

Aberdeen Centre for Research in Energy Economics
Edward Wright Building
Aberdeen, Scotland AB24 3QY
United Kingdom

HOME PAGE: http://www.abdn.ac.uk/business/disciplines/economics/profiles/sola.kasim

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