(
2005-11)
Managi, Shunsuke; Opaluch, James J.; Jin, Di; Grigalunas, Thomas A.
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.
