• The asymmetric relationship of oil prices and production on drilling rig trajectory

      Apergis, Nicholas; Ewing, Bradley T.; Payne, James E.; University of Derby; Texas Tech University, Lubbock, TX, USA; The University of Texas at El Paso, El Paso, TX, USA (Elsevier BV, 2021-01-22)
      With active drilling rigs essential for replenishing oil resources depleted through production, this study examines the potential asymmetries between drilling rig trajectory (vertical, directional, and horizontal), oil prices and oil production in the U.S. within a nonlinear autoregressive distributed lag framework. Based on weekly data, the results reveal long-run symmetry with respect to oil prices irrespective of drilling rig trajectory. However, there is long-run asymmetry for oil production consistent with the capital-intensive nature of drilling and the fixed costs associated with new wells. The results also show short-run asymmetry with respect to both oil prices and oil production consistent with companies taking advantage of upturns quickly and refraining from costly shut-in, plug and abandon, or increased expenditures on improved oil recovery during downturns.
    • Per capita carbon dioxide emissions across U.S. states by sector and fossil fuel source: evidence from club convergence tests

      Apergis, Nicholas; Payne, James E.; University of Piraeus; Georgia College & State University (Elsevier, 2017-01-17)
      This study extends the literature on the convergence of per capita carbon dioxide emissions by examining the 50 U.S. states including the District of Columbia in the aggregate, by sector, and by fossil fuel source using the Phillips-Sul club convergence approach for the period 1980 to 2013. The results indicate multiple convergence clubs in the aggregate, by sector (residential, commercial, industrial, transport, and electric power), and for two of the three fossil fuel sources (natural gas and coal) with full panel club convergence in the case of petroleum. The presence of multiple equilibria suggests that environmental policies should recognize the distinctive convergence paths associated with each cluster of states.