Developmental trends in crude oil production: case study of Norway and Russia

Irina Kochanzhi

Bachelor's thesis

Abstract:

In the 20th century crude oil has become one of the most influential and strategic commodities for the world economy. As a result the dramatic increase of crude oil market has been attracting a growing economists’ attention, especially, the impact of crude oil production on a country’s economy. The main aim of this bachelor thesis is to define major developmental trends in crude oil production on the example of Norway and Russia trough identification the existing links between selected macroeconomic indicators and volumes of domestic crude oil production. The theoretical part of the bachelor thesis focuses on general factors influencing crude oil production for the last 30 years. Having identified the most important ones, the practical part concentrates on the case study of selected countries using regression analysis. Two econometric models were constructed to investigate the relationships between volume of crude oil production and chosen macroeconomic indicators (GDP per Capita, Exchange rate, Inflation rate and Crude oil WTI Futures). Both models are confirmed to be statistically significant, however the significance of individual macroeconomic factors in explanation of crude oil production has appeared to be different in Russia and Norway. The analysis confirmed that Russian crude oil production is mainly affected by Exchange rate of Russian rouble to USD and price of WTI crude oil futures, whilst Norwegian one – by GDP per Capita and Inflation rate, meaning that developmental patterns in Norway and Russia are different.

Keywords

Crude oil production, Developmental Trends, GDP, Macroeconomic factors, Regression analysis, Russia, Norway

Jazyk práce: English

Datum vytvoření / odevzdání či podání práce: 15. 3. 2019

Obhajoba závěrečné práce

• Vedúci: Mgr. Elena Kuzmenko, Ph.D.

Czech University of Life Sciences Prague

Faculty of Economics and Management

Bachelor programme / odbor:
Economics Policy and Administration / Business Administration