

Author: BLOCH HARRY VOOLA JO
Publisher: Routledge Ltd
ISSN: 1466-1829
Source: International Journal of the Economics of Business, Vol.11, Iss.1, 2004-02, pp. : 27-36
Disclaimer: Any content in publications that violate the sovereignty, the constitution or regulations of the PRC is not accepted or approved by CNPIEC.
Abstract
The world petroleum industry has been revolutionized by a change in exploration technology from two-dimensional (2D) to three-dimensional (3D) seismic mapping. One of the main effects of the newer technology has been to decrease the cost of finding oil, particularly in offshore fields. We examine the impact of the new technology on the exploration activities of the major international petroleum companies and find that they have aggressively increased petroleum exploration expenditures. As a result, we suggest that the companies have achieved a prisoner's dilemma outcome, where they are collectively worse off in terms of profits, providing a possible explanation for the recent wave of large-scale mergers in the industry.
Related content




Strategic change in the European defence industry
By Bishop Paul
European Business Review, Vol. 97, Iss. 4, 1997-04 ,pp. :


Strategic Alliances in the European Food Industry
European Business Review, Vol. 94, Iss. 4, 1994-04 ,pp. :


Strategic alliances in the European defence industry
By Butler Colin Kenny Brian Anchor John
European Business Review, Vol. 12, Iss. 6, 2000-06 ,pp. :


Technology value as a dynamic strategic framework
European Business Review, Vol. 22, Iss. 5, 2010-08 ,pp. :