Robert Kaufmann publishes on oil rig activity in Nature Energy

Professor Robert Kaufmann has just published “The effect of oil and gas price and price volatility on rig activity in tight formations and OPEC strategy” in Nature Energy. In the article, Professor Kaufmann and his colleague Esmail Ansari show that “the [break-even price] for rigs used to drill oil wells is $20 (~$50 nominal), the effect of price volatility on rig activity declines as the price for crude oil or natural gas moves above or below this BEP, firms use futures prices (not spot prices) to plan exploration and development, and new rig productivity affects both drilling activity and oil prices.” Dr. Kaufmann has also penned a behind-the-scenes account of the research.