The effect of oil prices on offshore production : evidence from the Norwegian continental shelf

Abstract

I use detailed field-level data on Norwegian o↵-shore oil field production and a semi-parametric additive model to control for the production profile of fields to estimate the e↵ect of oil prices on production. I find no significant evidence of a concurrent reaction of field production to oil prices, though a slight lagged e↵ect is found of the magnitude of approximately 2 to 4% for a 10 dollar per barrel increase in the real price of oil. Most of this e↵ect appears to come in the planning phase of a field’s development.