TY - JOUR
T1 - Technological change and depletion in offshore oil and gas
AU - Managi, Shimsuke
AU - Opaluch, James J.
AU - Jin, Di
AU - Grigalunas, Thomas A.
N1 - Funding Information:
The authors thank two anonymous referees, a co-editor, Rolf Färe, Kristiaan Kerstens, Akira Hibiki, and Samuel Bwalya for helpful comments. This research was funded by the United States Environmental Protection Agency STAR Grant Program (Grant R826610-01) and the Rhode Island Agricultural Experiment Station (AES Number 3926), and is Woods Hole Contribution Number 10583. The results and conclusions of this paper do not necessary represent the views of the funding agencies.
PY - 2004/3
Y1 - 2004/3
N2 - 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.
AB - 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.
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U2 - 10.1016/S0095-0696(03)00093-7
DO - 10.1016/S0095-0696(03)00093-7
M3 - Article
AN - SCOPUS:1542320735
SN - 0095-0696
VL - 47
SP - 388
EP - 409
JO - Journal of Environmental Economics and Management
JF - Journal of Environmental Economics and Management
IS - 2
ER -
