133 research outputs found

    FORECASTING ENERGY SUPPLY AND POLLUTION FROM THE OFFSHORE OIL AND GAS INDUSTRY

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    Sound energy and environmental policies require reliable forecasts of production and pollution, as well as supply response to policy actions. In this study, we describe a model for forecasting long-term production and pollution in the offshore oil and gas industry in the Gulf of Mexico under different scenarios. A model based on disaggregated field-level data is used to forecast production and pollution through to the year 2050. The time path for resource depletion is determined as the net effect of technological progress and depletion under alternative scenarios for new discoveries. We also quantify potential efficiencies that could result from changing the design of regulations from the current command-and-control regime, to an approach that allows more flexible means of achieving the same environmental goals.Forecasting, energy supply, R&D, technological change, environmental regulations, environmental pollution, offshore oil, gas industry, Resource /Energy Economics and Policy, D24, L71, Q32, Q48,

    Measuring Damages to Marine Natural Resources from Pollution Incidents under CERCLA: Applications of an Integrated Ocean Systems/Economic Model

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    Several pieces of federal environmental regulation establish strict liability for damages from spills of oil and hazardous substances. This paper discusses the Natural Resource Damage Assessment Model for Coastal and Marine Environments (NRDAMICME), which is to be used for assessing damages from spills of oil or hazardous substances in coastal and marine environments under CERCLA and the Clean Water Act, as amended. The approach employs an integrated ocean systems/economic model to simulate the physical fates and biological effects of a spill and to measure the resulting economic damages. To illustrate application of the model, selected results are presented for hypothetical spills of a number of substances in a variety of environments. The results show that the damage function depends on the physical and chemical properties of the substance spilled, the season, and the environment in which the spill occurs.Environmental Economics and Policy, Research Methods/ Statistical Methods, Resource /Energy Economics and Policy, Risk and Uncertainty,

    Stochastic frontier analysis of total factor productivity in the offshore oil and gas industry

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    Author Posting. © The Authors, 2005. This is the author's version of the work. It is posted here by permission of Elsevier B.V. for personal use, not for redistribution. The definitive version was published in Ecological Economics 60 (2006): 204-215, doi:10.1016/j.ecolecon.2005.11.028.We examine the impact of technological change on oil and gas exploration, development and production in the Gulf of Mexico over the past five decades. We analyze the effect of technological change on the production frontier using a unique field-level data set covering 1947 through 1998. We then develop estimates of the growth in total factor productivity (TFP) in the industry at the regional level from 1976 to 1995. To address the unique features of this marine resource industry, we include in our models some key geological variables such as water depth and field size. In addition, the results reveal that environmental regulation had a significantly negative impact on offshore production, although such impact has been diminishing over time.This research was funded by the United States Environmental Protection Agency STAR grant program (Grant Number Grant Number R826610-01) and the Rhode Island Agricultural Experiment Station (AES Number 5034)

    Technological change and depletion in offshore oil and gas

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    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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