Stochastic frontier analysis of total factor productivity in the offshore oil and gas industry

Shunsuke Managi, James J. Opaluch, Di Jin, Thomas A. Grigalunas

Research output: Contribution to journalArticlepeer-review

34 Citations (Scopus)


We examine the impact of technological change on oil and gas exploration, development and production in the Gulf of Mexico over the past five decades. We analyze the effect of technological change on the production frontier using a unique field-level data set covering 1947 through 1998. We then develop estimates of the growth in total factor productivity (TFP) in the industry at the regional level from 1976 to 1995. To address the unique features of this marine resource industry, we include in our models some key geological variables such as water depth and field size. In addition, the results reveal that environmental regulation had a significantly negative impact on offshore production, although such impact has been diminishing over time.

Original languageEnglish
Pages (from-to)204-215
Number of pages12
JournalEcological Economics
Issue number1
Publication statusPublished - 2006 Nov 1
Externally publishedYes


  • Environmental regulation
  • Offshore oil and gas industry
  • Productivity
  • Stochastic frontier analysis
  • Technological change

ASJC Scopus subject areas

  • Environmental Science(all)
  • Economics and Econometrics


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