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Modeling North Sea oil production

Persson, Kristoffer LU (2011) NEKM01 20101
Department of Economics
Abstract
In this thesis an empirical model for optimal production of North Sea oil is implemented for the purpose of evaluation in a contemporary context. The model was presented by Pesaran in 1990 and is one of dynamic optimization where a price-taking producer faces a maximization problem subject to constraints describing production conditions. The model along with some background research is initially presented in a quite extensive form. Later the generalized method of moments estimator is used to estimate the equations describing optimal production and exploration of oil. The model proofs to be relatively unsuccessful for the period 1989Q1-2008Q4 and the reason for the failure of it is argued to be implicit assumptions about the stationarity of... (More)
In this thesis an empirical model for optimal production of North Sea oil is implemented for the purpose of evaluation in a contemporary context. The model was presented by Pesaran in 1990 and is one of dynamic optimization where a price-taking producer faces a maximization problem subject to constraints describing production conditions. The model along with some background research is initially presented in a quite extensive form. Later the generalized method of moments estimator is used to estimate the equations describing optimal production and exploration of oil. The model proofs to be relatively unsuccessful for the period 1989Q1-2008Q4 and the reason for the failure of it is argued to be implicit assumptions about the stationarity of real oil prices and the lack of cointegration between variables included. (Less)
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author
Persson, Kristoffer LU
supervisor
organization
course
NEKM01 20101
year
type
H1 - Master's Degree (One Year)
subject
keywords
Oil production, Resource Scarcity, Norway, Dynamic Optimization, GMM
language
English
id
1764566
date added to LUP
2011-03-11 08:35:17
date last changed
2011-03-11 08:35:17
@misc{1764566,
  abstract     = {In this thesis an empirical model for optimal production of North Sea oil is implemented for the purpose of evaluation in a contemporary context. The model was presented by Pesaran in 1990 and is one of dynamic optimization where a price-taking producer faces a maximization problem subject to constraints describing production conditions. The model along with some background research is initially presented in a quite extensive form. Later the generalized method of moments estimator is used to estimate the equations describing optimal production and exploration of oil. The model proofs to be relatively unsuccessful for the period 1989Q1-2008Q4 and the reason for the failure of it is argued to be implicit assumptions about the stationarity of real oil prices and the lack of cointegration between variables included.},
  author       = {Persson, Kristoffer},
  keyword      = {Oil production,Resource Scarcity,Norway,Dynamic Optimization,GMM},
  language     = {eng},
  note         = {Student Paper},
  title        = {Modeling North Sea oil production},
  year         = {2011},
}