Modeling North Sea oil production
(2011) NEKM01 20101Department 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)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/1764566
- author
- Persson, Kristoffer LU
- supervisor
- organization
- course
- NEKM01 20101
- year
- 2011
- 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}}, language = {{eng}}, note = {{Student Paper}}, title = {{Modeling North Sea oil production}}, year = {{2011}}, }