Oil and gas
Analyses, articles and publications
This paper examines the supply of U.S. LTO from both a theoretical and empirical point of view. The theory model combines endogenous rig activity and stylized reservoir pressure mechanics with the classic Hotelling model for exhaustible resource extraction.
The decline is mainly caused by lower oil and gas prices, while production volume remains stable. Meanwhile, production value in the support industries rise for the third year in a row.
The global energy transition from fossil to low-carbon energy challenges the future of the Norwegian petroleum sector, a major factor in the country’s economy, now facing financial climate risk and long-term declining demand, particularly for gas to the EU.