Determinants of the Timing and Incidence of Exploratory Drilling on Offshort Wildcat Tracts / Kenneth Hendricks, Robert H. Porter.

Format:

Book

Author/Creator:

Hendricks, Kenneth.

Contributor:

National Bureau of Economic Research.

Porter, Robert H.

Series:

Working Paper Series (National Bureau of Economic Research) no. w4605.

NBER working paper series no. w4605

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1993.

Summary:

This paper documents exploratory drilling activity on offshore wildcat oil and gas leases in the Gulf of Mexico that were sold between 1954 and 1990, with emphasis on the period before 1980. For each year of the lease, we study the determinants of the decision whether or not to begin exploratory drilling, and the outcome of any drilling activity. Our results indicate that equilibrium predictions of plausible noncooperative models are reasonably accurate, and more descriptive than those of cooperative models of drilling timing. We discuss why noncooperative behavior may occur, and the potential gains from coordination.

Notes:

Print version record

December 1993.