DEVELOPMENT OF TIGHT OIL RESOURCES IN USA: PROFITABILITY OF EXPLOITATION AND EFFECT OF MACROECONOMIC INDICATORS IN VOLATILE OIL PRICE ENVIRONMENT
Large scale development of tight oil resources in US started after 2010. with following five-year period of favorable steady increase in crude oil price. During this relatively short expansion cycle, operating and capital expenses changed drastically for main tight oil plays due to technological imp...
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| Format: | Article |
| Language: | English |
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University of Zagreb
2017-01-01
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| Series: | Rudarsko-geološko-naftni Zbornik |
| Subjects: | |
| Online Access: | https://hrcak.srce.hr/file/271091 |
| _version_ | 1827159743401033728 |
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| author | Kristina Strpić Monika Miličević Tomislav Kurevija |
| author_facet | Kristina Strpić Monika Miličević Tomislav Kurevija |
| author_sort | Kristina Strpić |
| collection | DOAJ |
| description | Large scale development of tight oil resources in US started after 2010. with following five-year period of favorable steady increase in crude oil price. During this relatively short expansion cycle, operating and capital expenses changed drastically for main tight oil plays due to technological improvements in both well drilling and completion, expansion of service sector as well as loose government monetary policy which allowed favorable financing. This paper analyzed trends in costs during expansion period, as well as correlation of oil price to number of operating rigs and production quotas. After 2008/2009. world financial crisis economy recovery in US was somewhat sluggish and it caused extreme volatile environment in both equity and commodity markets. In such volatile environment intra-day crude oil prices, as well as other commodities and equities, show significant reaction to monthly published macroeconomic indicator reports, which give better overviews of trends in economic recovery. Prior to announcement, these reports always have forecasted value determined by consensus among market analysts. Therefore, any positive or negative surprise in real value tends to influence price of oil. This paper investigated influence of such macroeconomic reports to closing intraday oil price, as well as effect of other important daily market indices. Analysis showed that only Producer Price Index (PPI), among other indicators, has statistical significance of affecting intraday closing oil price. |
| first_indexed | 2024-04-24T09:29:02Z |
| format | Article |
| id | doaj.art-90ad1162ba7a412897f4ae8ecdb7f0af |
| institution | Directory Open Access Journal |
| issn | 0353-4529 1849-0409 |
| language | English |
| last_indexed | 2025-03-21T00:01:59Z |
| publishDate | 2017-01-01 |
| publisher | University of Zagreb |
| record_format | Article |
| series | Rudarsko-geološko-naftni Zbornik |
| spelling | doaj.art-90ad1162ba7a412897f4ae8ecdb7f0af2024-08-03T11:32:37ZengUniversity of ZagrebRudarsko-geološko-naftni Zbornik0353-45291849-04092017-01-01323233310.17794/rgn.2017.3.3DEVELOPMENT OF TIGHT OIL RESOURCES IN USA: PROFITABILITY OF EXPLOITATION AND EFFECT OF MACROECONOMIC INDICATORS IN VOLATILE OIL PRICE ENVIRONMENTKristina Strpić0Monika Miličević1Tomislav Kurevija2Faculty of Mining, Geology and Petroleum Engineering, Pierottijeva 6, Zagreb, Republic of CroatiaFaculty of Mining, Geology and Petroleum Engineering, Pierottijeva 6, Zagreb, Republic of CroatiaFaculty of Mining, Geology and Petroleum Engineering, Pierottijeva 6, Zagreb, Republic of CroatiaLarge scale development of tight oil resources in US started after 2010. with following five-year period of favorable steady increase in crude oil price. During this relatively short expansion cycle, operating and capital expenses changed drastically for main tight oil plays due to technological improvements in both well drilling and completion, expansion of service sector as well as loose government monetary policy which allowed favorable financing. This paper analyzed trends in costs during expansion period, as well as correlation of oil price to number of operating rigs and production quotas. After 2008/2009. world financial crisis economy recovery in US was somewhat sluggish and it caused extreme volatile environment in both equity and commodity markets. In such volatile environment intra-day crude oil prices, as well as other commodities and equities, show significant reaction to monthly published macroeconomic indicator reports, which give better overviews of trends in economic recovery. Prior to announcement, these reports always have forecasted value determined by consensus among market analysts. Therefore, any positive or negative surprise in real value tends to influence price of oil. This paper investigated influence of such macroeconomic reports to closing intraday oil price, as well as effect of other important daily market indices. Analysis showed that only Producer Price Index (PPI), among other indicators, has statistical significance of affecting intraday closing oil price.https://hrcak.srce.hr/file/271091tight oilbreakeven pricemacroeconomic indicatorscommodity and equity market |
| spellingShingle | Kristina Strpić Monika Miličević Tomislav Kurevija DEVELOPMENT OF TIGHT OIL RESOURCES IN USA: PROFITABILITY OF EXPLOITATION AND EFFECT OF MACROECONOMIC INDICATORS IN VOLATILE OIL PRICE ENVIRONMENT Rudarsko-geološko-naftni Zbornik tight oil breakeven price macroeconomic indicators commodity and equity market |
| title | DEVELOPMENT OF TIGHT OIL RESOURCES IN USA: PROFITABILITY OF EXPLOITATION AND EFFECT OF MACROECONOMIC INDICATORS IN VOLATILE OIL PRICE ENVIRONMENT |
| title_full | DEVELOPMENT OF TIGHT OIL RESOURCES IN USA: PROFITABILITY OF EXPLOITATION AND EFFECT OF MACROECONOMIC INDICATORS IN VOLATILE OIL PRICE ENVIRONMENT |
| title_fullStr | DEVELOPMENT OF TIGHT OIL RESOURCES IN USA: PROFITABILITY OF EXPLOITATION AND EFFECT OF MACROECONOMIC INDICATORS IN VOLATILE OIL PRICE ENVIRONMENT |
| title_full_unstemmed | DEVELOPMENT OF TIGHT OIL RESOURCES IN USA: PROFITABILITY OF EXPLOITATION AND EFFECT OF MACROECONOMIC INDICATORS IN VOLATILE OIL PRICE ENVIRONMENT |
| title_short | DEVELOPMENT OF TIGHT OIL RESOURCES IN USA: PROFITABILITY OF EXPLOITATION AND EFFECT OF MACROECONOMIC INDICATORS IN VOLATILE OIL PRICE ENVIRONMENT |
| title_sort | development of tight oil resources in usa profitability of exploitation and effect of macroeconomic indicators in volatile oil price environment |
| topic | tight oil breakeven price macroeconomic indicators commodity and equity market |
| url | https://hrcak.srce.hr/file/271091 |
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