Julien Daubanes

Thematic seminars
Economic theory seminar

Julien Daubanes

University of Geneva
Oil companies' reserve sensitivity to the oil price (RSP)
Joint with
Saraly Andrade de Sá, Diego Cardoso

IBD Salle 15

Îlot Bernard du Bois - Salle 15

5-9 boulevard Maurice Bourdet
13001 Marseille

Thursday, June 8 2023| 12:00pm to 1:00pm

Gaëtan Fournier: gaetan.fournier[at]univ-amu.fr


Climate action will decrease the profitability of oil exploitation, reducing the amount of economically viable oil reserves. We propose and examine a measure for the vulnerability of oil companies' economic reserves to the oil price. First, we present a testable decomposition of the effect of the oil price on oil companies' profits that captures the RSP. Second, we test this relation, providing new evidence that markets take into account the effect of the oil price on economic oil reserves. Third, we estimate our RSP metric directly from fundamental data on companies' reserves.