Offshore Oil and Environmental Risk: Federal Offerings vs. Industry Bids
This paper examines the role of environmental risk in the Interior Department's Outer Continental Shelf (OCS) acreage offering decision process and the oil industry's bidding decision. Following a brief discussion of the OCS leasing process, a conceptual model for understanding the decisio...
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Online Access: | http://dx.doi.org/10.1177/014459878800600411 http://journals.sagepub.com/doi/pdf/10.1177/014459878800600411 |
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crsagepubl:10.1177/014459878800600411 2023-05-15T17:33:34+02:00 Offshore Oil and Environmental Risk: Federal Offerings vs. Industry Bids Englin, J. E. Klan, M. S. 1988 http://dx.doi.org/10.1177/014459878800600411 http://journals.sagepub.com/doi/pdf/10.1177/014459878800600411 en eng SAGE Publications http://journals.sagepub.com/page/policies/text-and-data-mining-license Energy Exploration & Exploitation volume 6, issue 4-5, page 378-391 ISSN 0144-5987 2048-4054 Energy Engineering and Power Technology Fuel Technology Nuclear Energy and Engineering Renewable Energy, Sustainability and the Environment journal-article 1988 crsagepubl https://doi.org/10.1177/014459878800600411 2022-04-14T04:49:30Z This paper examines the role of environmental risk in the Interior Department's Outer Continental Shelf (OCS) acreage offering decision process and the oil industry's bidding decision. Following a brief discussion of the OCS leasing process, a conceptual model for understanding the decisions proposed. The associated equations are econometrically estimated for both Interior und the oil industry using data from the 1979 North Atlantic Georges Bank Sale. By estimating decision equations as a function of environmental risk, cost of extraction, and expected hydrocarbon potential, the trade off between these parameters is revealed. Two important results are obtained. First is that in the Norht Atlantic study case, the acreage of interest to industry was largely a subset of the acreage Interior was willing to offer. This implies that industry was generally more conservative with respect to environmental risk than Interior. Second, the industry trade off between expected hydrocarbons and risk of a potential oil spill reaching shore was considerable. Over $1 million worth of additional expected hydrocarbons was needed to induce a bid if the risk of a spill hitting shore increased about 7% Article in Journal/Newspaper North Atlantic SAGE Publications (via Crossref) Energy Exploration & Exploitation 6 4-5 378 391 |
institution |
Open Polar |
collection |
SAGE Publications (via Crossref) |
op_collection_id |
crsagepubl |
language |
English |
topic |
Energy Engineering and Power Technology Fuel Technology Nuclear Energy and Engineering Renewable Energy, Sustainability and the Environment |
spellingShingle |
Energy Engineering and Power Technology Fuel Technology Nuclear Energy and Engineering Renewable Energy, Sustainability and the Environment Englin, J. E. Klan, M. S. Offshore Oil and Environmental Risk: Federal Offerings vs. Industry Bids |
topic_facet |
Energy Engineering and Power Technology Fuel Technology Nuclear Energy and Engineering Renewable Energy, Sustainability and the Environment |
description |
This paper examines the role of environmental risk in the Interior Department's Outer Continental Shelf (OCS) acreage offering decision process and the oil industry's bidding decision. Following a brief discussion of the OCS leasing process, a conceptual model for understanding the decisions proposed. The associated equations are econometrically estimated for both Interior und the oil industry using data from the 1979 North Atlantic Georges Bank Sale. By estimating decision equations as a function of environmental risk, cost of extraction, and expected hydrocarbon potential, the trade off between these parameters is revealed. Two important results are obtained. First is that in the Norht Atlantic study case, the acreage of interest to industry was largely a subset of the acreage Interior was willing to offer. This implies that industry was generally more conservative with respect to environmental risk than Interior. Second, the industry trade off between expected hydrocarbons and risk of a potential oil spill reaching shore was considerable. Over $1 million worth of additional expected hydrocarbons was needed to induce a bid if the risk of a spill hitting shore increased about 7% |
format |
Article in Journal/Newspaper |
author |
Englin, J. E. Klan, M. S. |
author_facet |
Englin, J. E. Klan, M. S. |
author_sort |
Englin, J. E. |
title |
Offshore Oil and Environmental Risk: Federal Offerings vs. Industry Bids |
title_short |
Offshore Oil and Environmental Risk: Federal Offerings vs. Industry Bids |
title_full |
Offshore Oil and Environmental Risk: Federal Offerings vs. Industry Bids |
title_fullStr |
Offshore Oil and Environmental Risk: Federal Offerings vs. Industry Bids |
title_full_unstemmed |
Offshore Oil and Environmental Risk: Federal Offerings vs. Industry Bids |
title_sort |
offshore oil and environmental risk: federal offerings vs. industry bids |
publisher |
SAGE Publications |
publishDate |
1988 |
url |
http://dx.doi.org/10.1177/014459878800600411 http://journals.sagepub.com/doi/pdf/10.1177/014459878800600411 |
genre |
North Atlantic |
genre_facet |
North Atlantic |
op_source |
Energy Exploration & Exploitation volume 6, issue 4-5, page 378-391 ISSN 0144-5987 2048-4054 |
op_rights |
http://journals.sagepub.com/page/policies/text-and-data-mining-license |
op_doi |
https://doi.org/10.1177/014459878800600411 |
container_title |
Energy Exploration & Exploitation |
container_volume |
6 |
container_issue |
4-5 |
container_start_page |
378 |
op_container_end_page |
391 |
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1766132114708758528 |