My research to date has been in energy economics and applied econometrics, with a particular focus on dynamic problems.
In my job market paper, I investigate how oil and gas companies learn about where to drill shale wells. Geological characteristics are key determinants of oil and gas production outcomes, but these are not fully known by firms until actual drilling occurs. To study the precision of firms’ prior beliefs about geological quality in Louisiana’s Haynesville shale, I estimate a strucural model that combines initial mineral lease terms, firms’ dynamic, discrete choices to drill wells, and the production outcomes of these wells. These three components are linked by learning. I find that firms’ initial signals about geology are only somewhat informative. The informational value of exploratory drilling is likely to have accelerated the U.S. shale boom. Ignoring learning and depletion of these sweet spots could lead to over-estimates of the long-run supply of shale oil and gas.
I will be interviewing at the 2018 ASSA meetings in Philadelphia.