Geological constraints are considered in the context of a Hotelling type extraction-exploration model for an exhaustible resource. It is shown that such constraints, in combination with initially small reserves and strictly convex exploration costs, can coherently explain bellshaped peaks in...

We propose a model to reconcile the theory of inter-temporal non-renewable resource depletion with well-known stylized facts concerning the exploitation of exhaustible resources such as oil. Our approach introduces geological constraints into a Hotelling type extraction-exploration model. We...

This article compares the advantages and limits of the two main methods used in the literature to model oil production: the technical Hubbert approach and the economic Hotelling approach. We argue that the technical approach can be nested in the economic approach by showing that a technical or...

A model of global oil production is applied to study cartelization by OPEC countries. Writing out the shadow price on quota allocations so as to draw correspondence to coefficients of cooperation (Cyert et al. 1973), we examine the incentives that different OPEC members to collude. We find that...

By making use of coefficients of cooperation [8] in a global oil model where OPEC producers are the dominant players and non-OPEC is the competitive fringe, we ask whether OPEC producers have strong incentives for imperfect collusion. First, assuming that OPEC members withhold supply only when...

Following the peak in US crude oil production 30 years ago, more and more non-OPEC producers have seen their production decline as a result of resource depletion. OPEC on the other hand has extracted a comparatively smaller proportion of its reserve base. Given that new non-OPEC discoveries are...

A model of global oil production is applied to study cartelization by OPEC countries. We define a measure for the degree of cooperation, analogous to the market conduct parameter of Cyert et al., 1973, Geroski et al., 1987, Lofaro, 1999, and Symeonidis, 2000. This parameter is used to assess the...