An Economic Model of Oil Exploration and Extraction

Greiner A, Semmler W, Mette T (2012)
Computational Economics 40(4): 387-399.

Zeitschriftenaufsatz | Veröffentlicht | Englisch
 
Download
Es wurde kein Volltext hochgeladen. Nur Publikationsnachweis!
Autor/in
Abstract / Bemerkung
In this paper we present empirical facts on oil exploitation and a model that can replicate some of these facts. In particular, we show that the time path of the oil price, on the one hand, and the extraction rate, on the other hand, seem to follow a U-shaped and an inverted U-shaped relationship, respectively, which is confirmed by simple non-parametric estimations. Next, we present a theoretical model where a monopolistic resource owner maximizes inter-temporal profits from exploiting a non-renewable resource where the price of the resource depends on the extraction rate and on cumulated past extraction. The resource is finite and only a part of the resource is known while the rest has not yet been discovered. The analysis of that model demonstrates that the extraction rate and the price of the resource show the empirically observed pattern if the stock of the initially known resource is small.
Stichworte
Non-parametric estimation; Non-renewable resources; Optimal control; Oil; production
Erscheinungsjahr
2012
Zeitschriftentitel
Computational Economics
Band
40
Ausgabe
4
Seite(n)
387-399
ISSN
0927-7099
eISSN
1572-9974
Page URI
https://pub.uni-bielefeld.de/record/2544055

Zitieren

Greiner A, Semmler W, Mette T. An Economic Model of Oil Exploration and Extraction. Computational Economics. 2012;40(4):387-399.
Greiner, A., Semmler, W., & Mette, T. (2012). An Economic Model of Oil Exploration and Extraction. Computational Economics, 40(4), 387-399. doi:10.1007/s10614-011-9272-0
Greiner, A., Semmler, W., and Mette, T. (2012). An Economic Model of Oil Exploration and Extraction. Computational Economics 40, 387-399.
Greiner, A., Semmler, W., & Mette, T., 2012. An Economic Model of Oil Exploration and Extraction. Computational Economics, 40(4), p 387-399.
A. Greiner, W. Semmler, and T. Mette, “An Economic Model of Oil Exploration and Extraction”, Computational Economics, vol. 40, 2012, pp. 387-399.
Greiner, A., Semmler, W., Mette, T.: An Economic Model of Oil Exploration and Extraction. Computational Economics. 40, 387-399 (2012).
Greiner, Alfred, Semmler, Willi, and Mette, Tobias. “An Economic Model of Oil Exploration and Extraction”. Computational Economics 40.4 (2012): 387-399.