Economic and Financial Determinants of Oil and （经济和金融的石油和决定因素）.pdfVIP

This PDF is a selection from an out-of-print volume from the National Bureau of Economic Research Volume Author/Editor: R. Glenn Hubbard, editor Volume Publisher: University of Chicago Press, 1990 Volume ISBN: 0-226-35585-3 Volume URL: /books/glen90-1 Conference Date: May 5, 1989 Publication Date: January 1990 Chapter Title: Economic and Financial Determinants of Oil and Gas Exploration Activity Chapter Author: Peter C. Reiss Chapter URL: /chapters/c11472 Chapter pages in book: (p. 181 - 206) 7 Economic and Financial Determinants of Oil and Gas Exploration Activity Peter C. Reiss 7.1 Introduction In 1981, domestic oil companies spent a record $55.7 billion exploring for and developing oil and gas reserves in the United States. In 1986, they spent less than one-half that amount, a six-year low of $26.6 billion. This $29. 1 billion drop in capital spending is impressive by any standard. It was more than one-half of domestic corporate RD spending in 1986 and more than 10% of net corporate additions to new plant and equipment. Many factors contributed to this precipitous decline in exploration and development ex- penditures. From 1978 to 1981, world events such as the Iran-Iraq war and increased cooperation within OPEC caused the average domestic price of oil to jump from $8 to over $35 per barrel. As world oil prices rose, so did do- mestic exploration : large onshore and offshore projects were planned and undertaken; previously uneconomic leases became the object of renewed drill- ing efforts; and many firms began to experiment with expensive new drilling and completion techniques. During the latter half of 198 1 and early 1982, oil prices softened. While some oil companie