TY - JOUR
T1 - Strategic Responses to Advances in Seismic Technology in the Petroleum Industry
AU - Bloch, H.
AU - Voola, Jo
PY - 2004
Y1 - 2004
N2 - The world petroleum industry has been revolutionized by a change inexploration technology from two-dimensional (2D) to three-dimensional (3D) seismicmapping. One of the main effects of the newer technology has been to decrease the cost offinding oil, particularly in offshore fields. We examine the impact of the new technologyon the exploration activities of the major international petroleum companies and find thatthey have aggressively increased petroleum exploration expenditures. As a result, wesuggest that the companies have achieved a prisoner’s dilemma outcome, where they arecollectively worse off in terms of profits, providing a possible explanation for the recentwave of large-scale mergers in the industry.
AB - The world petroleum industry has been revolutionized by a change inexploration technology from two-dimensional (2D) to three-dimensional (3D) seismicmapping. One of the main effects of the newer technology has been to decrease the cost offinding oil, particularly in offshore fields. We examine the impact of the new technologyon the exploration activities of the major international petroleum companies and find thatthey have aggressively increased petroleum exploration expenditures. As a result, wesuggest that the companies have achieved a prisoner’s dilemma outcome, where they arecollectively worse off in terms of profits, providing a possible explanation for the recentwave of large-scale mergers in the industry.
U2 - 10.1080/1357151032000172219
DO - 10.1080/1357151032000172219
M3 - Article
SN - 1357-1516
VL - 11
SP - 27
EP - 36
JO - International Journal of the Economics of Business
JF - International Journal of the Economics of Business
IS - 1
ER -