Oil and Gas Exploration in USA

This empirical study analyzes the exploration activities of oil and gas companies in the USA, focusing on three key aspects: the sensitivity of exploration investments to price variations, the structure of oil and gas reserves, and the relationship between new discoveries and exploration investments. The research is based on financial reports from 1998 to 2019, using econometric techniques such as panel data analysis, fixed effects estimation, and instrumental variable regression.Findings indicate that exploration expenditures respond significantly to oil and gas price changes, with oil price variations having a stronger impact. The study also suggests that companies' investments in exploration are more effective for oil field discoveries after one year, whereas gas field discoveries occur within the same year. The results provide valuable insights for industry experts and policymakers on the dynamics of resource exploration and investment efficiency.