Strategic Responses to Advances in Seismic Technology in the Petroleum Industry

H. Bloch, Jo Voola

    Research output: Contribution to journalArticle

    2 Citations (Scopus)

    Abstract

    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.
    Original languageEnglish
    Pages (from-to)27-36
    JournalInternational Journal of the Economics of Business
    Volume11
    Issue number1
    DOIs
    Publication statusPublished - 2004

    Fingerprint

    Petroleum
    Strategic response
    Petroleum industry
    Technology change
    Industry
    Prisoners' dilemma
    Expenditure
    Oil
    Profit
    Costs
    Mergers

    Cite this

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    abstract = "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.",
    author = "H. Bloch and Jo Voola",
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    Strategic Responses to Advances in Seismic Technology in the Petroleum Industry. / Bloch, H.; Voola, Jo.

    In: International Journal of the Economics of Business, Vol. 11, No. 1, 2004, p. 27-36.

    Research output: Contribution to journalArticle

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    AU - Bloch, H.

    AU - Voola, Jo

    PY - 2004

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    JO - International Journal of the Economics of Business

    JF - International Journal of the Economics of Business

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