Version 1
: Received: 1 November 2024 / Approved: 4 November 2024 / Online: 4 November 2024 (14:49:43 CET)
How to cite:
Mendonça, M. J. C.; Pereira Jr, A. O.; Pessanha, J. F. M.; Pereira, R. M.; Hunt, J. D. Measuring the Impact of Pre-Salt on the Productivity of the Oil and Natural Gas Extraction Sector. Preprints2024, 2024110205. https://doi.org/10.20944/preprints202411.0205.v1
Mendonça, M. J. C.; Pereira Jr, A. O.; Pessanha, J. F. M.; Pereira, R. M.; Hunt, J. D. Measuring the Impact of Pre-Salt on the Productivity of the Oil and Natural Gas Extraction Sector. Preprints 2024, 2024110205. https://doi.org/10.20944/preprints202411.0205.v1
Mendonça, M. J. C.; Pereira Jr, A. O.; Pessanha, J. F. M.; Pereira, R. M.; Hunt, J. D. Measuring the Impact of Pre-Salt on the Productivity of the Oil and Natural Gas Extraction Sector. Preprints2024, 2024110205. https://doi.org/10.20944/preprints202411.0205.v1
APA Style
Mendonça, M. J. C., Pereira Jr, A. O., Pessanha, J. F. M., Pereira, R. M., & Hunt, J. D. (2024). Measuring the Impact of Pre-Salt on the Productivity of the Oil and Natural Gas Extraction Sector. Preprints. https://doi.org/10.20944/preprints202411.0205.v1
Chicago/Turabian Style
Mendonça, M. J. C., Rodrigo Mendes Pereira and Julian David Hunt. 2024 "Measuring the Impact of Pre-Salt on the Productivity of the Oil and Natural Gas Extraction Sector" Preprints. https://doi.org/10.20944/preprints202411.0205.v1
Abstract
Based on productivity and efficiency indicators, we investigated the performance of the Brazilian oil and gas exploration industry, comparing the performance of this sector with other industrial sectors. We associate productivity with the concept of total factor productivity (TFP), while efficiency is measured using the stochastic frontier production model. Our sample was assembled from the Annual Industrial Survey (PIA) for 29 Brazilian industrial sectors from 2007 to 2019. The results derived from both methods allow us to affirm that the policies resulting from the Pre-Salt have significantly boosted the oil and natural gas extraction sector in terms of technological progress and efficiency. Between 2007 and 2009, the sector was among the least efficient, ranking 29th. However, in 2019 it reached first place in terms of efficiency. This structural change, which began in 2010 as a result of the technological innovations resulting from investments in R&D, has undergone a change since 2010, reflected in the upward trend towards pre-salt exploration promoted by Petrobras, as well as the new regulatory framework and government incentives for oil exploration in Brazil. Unfortunately, these productivity gains have not been exported to other branches of industry connected to the oil industry.
Keywords
Oil exploration industry; Pre-salt; Total factor productivity; Stochastic Production Frontier; Bayesian inference
Subject
Business, Economics and Management, Econometrics and Statistics
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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