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Economic and Financial Determinants of Oil and Gas Exploration Activity / Peter C. Reiss.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Reiss, Peter C.
Contributor:
National Bureau of Economic Research.
Series:
Working Paper Series (National Bureau of Economic Research) no. w3077.
NBER working paper series no. w3077
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 1989.
Summary:
This paper studies the investment activities of 44 independent oil and gas firms from 1978 to 1986. It develops a dynamic model of oil and gas exploration and development. The model predicts less of a decline in exploration activity than actually occurred in 1985-86. I consider the extent to which financial factors may have affected firms' investment plans during the 1985-86 deflation. There is some evidence that credit contracts in this industry did place important limitations on firm's abilities to respond to the energy price deflation. These constraints were imposed because lenders could not separately distinguish between unfavorable industry developments and poor individual firm performance.
Notes:
Print version record
August 1989.

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