[open-economics] [Project-discussion] Oil Industry

Thu Feb 19 01:06:37 UTC 2015

Definitely. That is one of my goals while coordinating this group: Create
an impact on society and that's the reason why I keep looking for more
important topics of research - sometimes, even controversial.

Thank's for the article. I'll have a read soon.

2015-02-19 1:02 GMT+00:00 Rodney Beard <rodney.m.beard at gmail.com>:

> No problem. This is an interesting problem and looks like useful
> information I have not seen people working with this stuff at conferences
> or in the literature which is what makes it interesting. I think it will
> make a useful classroom resource as well.
>
> This is a draft of Libecap's unitization article:
> http://papers.ssrn.com/sol3/papers.cfm?abstract_id=81574
>
> for the New Palgrave.
>
> Rodney
>
>
> On Thu, Feb 19, 2015 at 12:52 AM, Gustavo Silva <
> gustavosantaremsilva at gmail.com> wrote:
>
>> Theorizing an industry can be a tough challenge, yes, but the uniqueness
>> behind it is that you can do it with the assumptions you want.
>> I understand your point and since you and Volodymyr are more into the oil
>> industry, I will follow your suggestion to rearrange data first and then
>> proceed with further researches. My suggestions would not require data for
>> the initial phase, but if you think we will not be able to actually do
>> anything good out of it, then I guess we should follow your suggestion.
>>
>> I'll wait for a couple of days to see everybody's interest about this
>> and, hopefully, we'll get enough people to quickly start doing something!
>>
>> Thank you for your active participation Rodney. I really appreciate it.
>>
>> 2015-02-19 0:49 GMT+00:00 Rodney Beard <rodney.m.beard at gmail.com>:
>>
>>> The problem is many of the variables in Libecap's models are not going
>>> to be in the contracts. his work is the only work I am aware of that
>>> presents a detailed model of upstream oil contracts. Perhaps someone else
>>> knows of others. the contracts vary across many countries the details will
>>> be quite variable. I'm arguing for something even simpler at this stage
>>> than what you are proposing. theory isn't going to help us that much
>>> initially we need to udnerstand the insitutional seting of these contracts.
>>> Before delving into the theory. That said Libecap has a New Palgrave
>>> article on unitization we should look at to see whether any of these
>>> contracts are characterized by that. We need to take baby steps to start
>>> with before trying anything sophisticated.
>>>
>>> The first point suggested by Volodymyr and yourself about rearranging
>>> the database is closer to what I had in mind. basically systematize and
>>> classify it. I really don't think more can be done initially. At least not
>>> if we want to do a professional job of it.
>>>
>>> Rodney
>>>
>>>
>>>
>>> On Thu, Feb 19, 2015 at 12:38 AM, Gustavo Silva <
>>> gustavosantaremsilva at gmail.com> wrote:
>>>
>>>> Rodney, that is the purpose of a theoretical study. You can analyze the
>>>> impact of specific variables and if we already have a decent framework to
>>>> work with, when it highlights the most important variables, for instance,
>>>> that it gets easier for us since we already have that. It is not
>>>> contradicting normatives or anything like that. It's saying that,
>>>> theoretically, these agreements are positive or negative to the society.
>>>> Consumer surplus and producer surplus are an easy variable to analyse -
>>>> theoretically. Empirically, that is a different challenge.
>>>>
>>>> My suggestion to start with this small analysis is to help us to know
>>>> each other more and also to get something running. Perhaps more curious
>>>> people will also get involved. In the future, everything that is in regard
>>>> to data will need a lot of inputs, work, researches and so on. Since it is
>>>> a more troublesome task, I am proposing to leave it to last since we can't
>>>> just make it happen, for now...
>>>>
>>>> Besides, we can still have our purpose of investigation but we can
>>>> change it later if needed. Let's say we want to investigate the same
>>>> theoretical model but with data. However, we'll get to the conclusion we
>>>> don't have enough data. It is a conclusion, although not a good one.
>>>> However, we can change our priorities so that we can gather some resources
>>>> in order to deliver our initial research.
>>>>
>>>> Does that sound more executable?
>>>>
>>>> 2015-02-19 0:30 GMT+00:00 Rodney Beard <rodney.m.beard at gmail.com>:
>>>>
>>>>> It is going to be difficult to measure welfare consequences of the
>>>>> contracts directly without other data and an appropriate framework. I think
>>>>> the first thing is to see what is there and determine an appropriate way to
>>>>> utilize the information. To measure welfare consequences from one contract
>>>>> to another how do you do that? You need an estimate of consumer or producer
>>>>> surplus or something? Libecap gives in some of his work hints on how to
>>>>> formulate a model but it relies on things like lease data. I can get lease
>>>>> data but I think there is plenty of stuff to mine in the contracts.
>>>>>
>>>>> Just picking a few and trying to reproduce table 1 from Libecap and
>>>>> smith (1999) (not 2002 made a mistake earlier) would be something. We need
>>>>> to walk before we can run. Making statements about the normative properties
>>>>> of one contract versus another at this stage is way too ambitious.
>>>>>
>>>>> Rodney
>>>>>
>>>>>
>>>>> On Thu, Feb 19, 2015 at 12:05 AM, Gustavo Silva <
>>>>> gustavosantaremsilva at gmail.com> wrote:
>>>>>
>>>>>> @Rodney,
>>>>>>
>>>>>> Thank you. It is more clear now.
>>>>>> Your suggestions seems something good to when we have more people
>>>>>> available since it may imply a lot of work in regard to the data. Maybe we
>>>>>> could wait for a couple of days to see who's interested in this or not.
>>>>>>
>>>>>> However, Mr. Volodymyr suggested two interesting topics:
>>>>>> - Rearrange this database that is confusing for the interested parts;
>>>>>> - Compare PSA (production sharing agreements) signed in the
>>>>>> developing countries effects - Welfare, wellness, and so on.
>>>>>>
>>>>>> Personally, the latest is the best suggestion and the most exact one
>>>>>> we have so far. Besides, it seems more executable for us, since we're short
>>>>>> in human resources. I haven't thought about it through, but I think it
>>>>>> would be a great start. It is something that has an impact and is very
>>>>>> important to the surrounding societies. We could try to do a theoretical
>>>>>> research and study its predicted effects - simply by modeling the industry
>>>>>> and compute the results. Later, after gathering enough data, we could run
>>>>>> an empirical study. After that, since we would already more data and it
>>>>>> would be related to oil contracts and agreements, perhaps we could move on
>>>>>> to your research topic, Rodney.
>>>>>>
>>>>>> What do you guys think?
>>>>>>
>>>>>> I can't stress this enough: Thank you very much for your
>>>>>> collaboration.
>>>>>>
>>>>>> @Iyyanki,
>>>>>> Thank you for your support!
>>>>>>
>>>>>>
>>>>>>
>>>>>> 2015-02-18 23:57 GMT+00:00 Rodney Beard <rodney.m.beard at gmail.com>:
>>>>>>
>>>>>>> Briefly my idea would be to go through Libecap's work and attempt to
>>>>>>> apply it to a case study of one or more oil contracts. I haven't really
>>>>>>> thought about the details but a brief glance indicates that not all data
>>>>>>> will be available in the open oil contract database and we would have to
>>>>>>> draw on other data. I can point to where to to find some of it later. It's
>>>>>>> not clear to me actually what is in each contract and how it relates to the
>>>>>>> theory, so I think part of the task is identifying that.
>>>>>>>
>>>>>>> Table 1 Libecap & Smith 2002 summarizes the sort of information that
>>>>>>> I would expect to find in the open oil database. First thing is to identify
>>>>>>> what actually is in the database.
>>>>>>>
>>>>>>> Rodney
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>> On Wed, Feb 18, 2015 at 11:45 PM, Gustavo Silva <
>>>>>>> gustavosantaremsilva at gmail.com> wrote:
>>>>>>>
>>>>>>>> Hi Rodney,
>>>>>>>>
>>>>>>>> Could you elaborate on the type of framework we should look at? I
>>>>>>>> mean, situations like that happen often - I took advantage of something
>>>>>>>> similar to develop my thesis, for instance - but it was not clear the
>>>>>>>> specific topic that that framework covers (Prices, firm's behaviors, etc).
>>>>>>>>
>>>>>>>> However, I understand that work involves merges in oil industry!?
>>>>>>>>
>>>>>>>> Thank you for your collaboration.
>>>>>>>>
>>>>>>>> 2015-02-18 23:38 GMT+00:00 Rodney Beard <rodney.m.beard at gmail.com>:
>>>>>>>>
>>>>>>>>> Hi Gustavo,
>>>>>>>>>
>>>>>>>>> as previously mentioned some of Gary Libecap's work on oil filed
>>>>>>>>> unitization and contracts would provide a framework for the type of data
>>>>>>>>> contained in the open oil database on contracts. My impression is that the
>>>>>>>>> work to date didn't look at this literature.
>>>>>>>>>
>>>>>>>>> Scholar search here:
>>>>>>>>> https://scholar.google.com/scholar?hl=en&q=libecap+oil+contract&btnG=&as_sdt=1%2C5&as_sdtp=
>>>>>>>>>
>>>>>>>>> Rodney
>>>>>>>>>
>>>>>>>>> On Wed, Feb 18, 2015 at 11:26 PM, Gustavo Silva <
>>>>>>>>> gustavosantaremsilva at gmail.com> wrote:
>>>>>>>>>
>>>>>>>>>> Hi all,
>>>>>>>>>>
>>>>>>>>>> After regaining my strength after a tough breakdown at another
>>>>>>>>>> project, I thought about what we could do to re-start the group. Most of
>>>>>>>>>> the people previously involved left the group and/or moved away to other
>>>>>>>>>> things and, thus, the group is kind of stumbling upon itself.
>>>>>>>>>>
>>>>>>>>>> It is crucial to rapidly get involved with a couple of projects
>>>>>>>>>> and get some results so that people realize we're alive and kicking.
>>>>>>>>>>
>>>>>>>>>> The oil industry is a very peculiar one and so I believe it is a
>>>>>>>>>> great start - specially since the literature is vague and not very concise
>>>>>>>>>> in specific matters. That is why the group has previously done a model
>>>>>>>>>> of an oil contract
>>>>>>>>>> <http://openeconomics.net/2013/10/22/open-model-of-an-oil-contract/>,
>>>>>>>>>> partnering up with Open Oil group. However, that research was not concluded
>>>>>>>>>> and we must proceed.
>>>>>>>>>>
>>>>>>>>>> In this specific thread, there are two main things I wish to know
>>>>>>>>>> from you:
>>>>>>>>>>
>>>>>>>>>>  1. Who's interested to get involved in this topic? I know Samira
>>>>>>>>>> and Rodney want to help, even though their contribution is kind of limited
>>>>>>>>>> due to real life commitments. However, as you understand, as more people
>>>>>>>>>> get involved, better for us.
>>>>>>>>>>  2. Which particular topics would you like to develop?
>>>>>>>>>> Personally, I would vote for theoretical models to, first, explain some
>>>>>>>>>> firm's behaviors in the market and, later, proceed with empirical analysis,
>>>>>>>>>> using open data - of course.
>>>>>>>>>>
>>>>>>>>>> Please let us know your thoughts. Even if we are only a few
>>>>>>>>>> collaborating, we can deliver amazing things, I am sure!
>>>>>>>>>>
>>>>>>>>>> Thank you in advance and I apologize to spam the OK's main
>>>>>>>>>> mailing list, but thought others would like to get involved with us.
>>>>>>>>>>
>>>>>>>>>> --
>>>>>>>>>> Best Regards / Obrigado e com os melhores cumprimentos,
>>>>>>>>>> Gustavo
>>>>>>>>>>
>>>>>>>>>>
>>>>>>>>>> _______________________________________________
>>>>>>>>>> open-economics mailing list
>>>>>>>>>> open-economics at lists.okfn.org
>>>>>>>>>> https://lists.okfn.org/mailman/listinfo/open-economics
>>>>>>>>>> Unsubscribe:
>>>>>>>>>> https://lists.okfn.org/mailman/options/open-economics
>>>>>>>>>>
>>>>>>>>>>
>>>>>>>>>
>>>>>>>>
>>>>>>>>
>>>>>>>> --
>>>>>>>> Best Regards / Obrigado e com os melhores cumprimentos,
>>>>>>>> Gustavo
>>>>>>>>
>>>>>>>>
>>>>>>>
>>>>>>
>>>>>>
>>>>>> --
>>>>>> Best Regards / Obrigado e com os melhores cumprimentos,
>>>>>> Gustavo Silva
>>>>>>
>>>>>> *Open Economics <http://openeconomics.net>, Work Group Coordinator*
>>>>>> *Phonebloks <https://phonebloks.com/en>, Partnership Manager*
>>>>>>
>>>>>>
>>>>>
>>>>
>>>>
>>>> --
>>>> Best Regards / Obrigado e com os melhores cumprimentos,
>>>> Gustavo Silva
>>>>
>>>> *Open Economics <http://openeconomics.net>, Work Group Coordinator*
>>>> *Phonebloks <https://phonebloks.com/en>, Partnership Manager*
>>>>
>>>>
>>>
>>
>>
>> --
>> Best Regards / Obrigado e com os melhores cumprimentos,
>> Gustavo Silva
>>
>> *Open Economics <http://openeconomics.net>, Work Group Coordinator*
>> *Phonebloks <https://phonebloks.com/en>, Partnership Manager*
>>
>>
>

-- 
Best Regards / Obrigado e com os melhores cumprimentos,
Gustavo Silva

*Open Economics <http://openeconomics.net>, Work Group Coordinator*
*Phonebloks <https://phonebloks.com/en>, Partnership Manager*
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