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The relationship between oil prices and rig counts: The importance of lags
Journal article   Open access   Peer reviewed

The relationship between oil prices and rig counts: The importance of lags

Ahmed Khalifa, Massimiliano Caporin and Shawkat Hammoudeh
Energy economics, v 63
01 Mar 2017
DOI: https://doi.org/10.1016/j.eneco.2017.01.015
Featured in Collection :   UN Sustainable Development Goals @ Drexel
url
http://hdl.handle.net/11577/3225826View
SubmittedOpen Access (License Unspecified),  Open

Abstract

Business & Economics Economics Social Sciences
This study deals with a timely and relevant issue in the oil market in the wake of the recent drastic drop in oil prices, which is the relationship between changes in oil prices and changes in rig counts, while accounting for other determinants of this relationship. This relationship is of strong interest to analysts, investors and policymakers in the United States and other countries. We empirically verify the impact of changes in oil prices on rig counts, which has lags up to one quarter. This evidence is stable across time and over different linear and non-linear models. The analysis also suggests that the relationship is non-linear, which is verified by both the quantile regression and quantile-on-quantile models. We find evidence of non-linearity that has softened in the most recent years where the relationship between the variables has stabilized. (C) 2017 Elsevier B.V. All rights reserved.

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16 Record Views
23 citations in Web of Science
24 citations in Scopus

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UN Sustainable Development Goals (SDGs)

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#8 Decent Work and Economic Growth

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Collaboration types
Domestic collaboration
International collaboration
Web of Science research areas
Economics
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