Technological change and depletion in offshore oil and gas

Shimsuke Managi, James J. Opaluch, Di Jin, Thomas A. Grigalunas

Research output: Contribution to journalArticle

73 Citations (Scopus)

Abstract

This paper tests the hypothesis that technological change has offset depletion for offshore oil and gas production in the Gulf of Mexico using a unique micro-level data set from 1947-1998. The study supports the hypothesis that technological progress has mitigated depletion effects for our case study, but the pattern differs from the conventional wisdom for non-renewable resource industries. Contrary to the usual assumptions of monotonic changes in productivity or an inverted "U"-shaped pattern, we found that productivity declined for the first 30 years of our study period. But more recently, the rapid pace of technological change has outpaced depletion and productivity has increased rapidly, particularly in most recent 5 years of our study period. We also provide a more thorough understanding of different components of technological change and depletion.

Original languageEnglish
Pages (from-to)388-409
Number of pages22
JournalJournal of Environmental Economics and Management
Volume47
Issue number2
DOIs
Publication statusPublished - Mar 2004

    Fingerprint

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics
  • Management, Monitoring, Policy and Law

Cite this