Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/310385 
Year of Publication: 
2024
Series/Report no.: 
Discussion Papers No. 1016
Publisher: 
Statistics Norway, Research Department, Oslo
Abstract: 
This paper provides evidence that oil price fluctuations have been an important driver of petroleum investment in Norway. To show this, I utilize a Bayesian vector autoregressive (BVAR) model combined with local projections, using various investment data from national accounts and firms' survey data. I find that a 10 percent increase in real oil prices typically results in about a 4 percent rise in petroleum investment, primarily boosting activities in exploration and existing fields, while field development investments show minimal response. These results contribute to a broader understanding of the role of oil prices in shaping Norwegian business cycles.
Subjects: 
Oil Prices
VAR model
Investment Dynamics
Macroeconomic Shocks
Bayesian Analysis
Energy Economic
JEL: 
Q43
E22
C32
L71
Document Type: 
Working Paper

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