TY  - JOUR
AU  - Hendricks,Kenneth
AU  - Porter,Robert H.
TI  - Determinants of the Timing and Incidence of Exploratory Drilling on     Offshort Wildcat Tracts
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 4605
PY  - 1993
Y2  - December 1993
UR  - http://www.nber.org/papers/w4605
L1  - http://www.nber.org/papers/w4605.pdf
N1  - Author contact info:
Robert H. Porter
Department of Economics
Northwestern University
2001 Sheridan Road
Evanston, IL 60208
Tel: 847/491-3491
Fax: 847/491-7001
E-Mail: r-porter@northwestern.edu
AB  - This paper documents exploratory drilling activity on offshore wildcat oil and gas leases in the Gulf of Mexico that were sold between 1954 and 1990, with emphasis on the period before 1980.  For each year of the lease, we study the determinants of the decision whether or not to begin exploratory drilling, and the outcome of any drilling activity.  Our results indicate that equilibrium predictions of plausible noncooperative models are reasonably accurate, and more descriptive than those of cooperative models of drilling timing.  We discuss why noncooperative behavior may occur, and the potential gains from coordination.
ER  -