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On the vulnerability of the oil and gas industry to oil price changes

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  • Williams Olatubi
  • Sung No

Abstract

Previous studies of oil-price economic activity relationships are dominated by macro-level examination of price effects. This study examines the effect of shocks in oil price and its volatility on the oil and gas extraction industry using a Vector Auto-Regressive (VAR) approach. The results show that, in the short-run, positive price and volatility shocks lead to significant increases in oil and gas activities. However, in the long-run, the industry behaves much like the rest of the U.S. economy—price and volatility shocks produce small or insignificant effects. Copyright International Atlantic Economic Society 2003

Suggested Citation

  • Williams Olatubi & Sung No, 2003. "On the vulnerability of the oil and gas industry to oil price changes," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 31(4), pages 363-375, December.
    • Handle: RePEc:kap:atlecj:v:31:y:2003:i:4:p:363-375
    DOI: 10.1007/BF02298494
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    References listed on IDEAS

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