(Montana State University - Bozeman, College of Agriculture, 2016) Bishop, Zachary Andrew; Chairperson, Graduate Committee: Randal R. Rucker
Substantial research has been conducted on the impacts of taxation on oil production. However, a void in the literature exists as the distinction has not yet been made between significant and marginal oil production. Using well-level production data from the state of Wyoming, this thesis estimates the impact of royalty rate reductions on marginally-producing, federal oil wells--commonly referred to as stripper wells. The empirical analysis is conducted using fixed effects double- and triple-difference models and a more traditional multiple regression model. The results suggest that production from federal stripper wells increased substantially during the royalty rate reduction program--on both the intensive and extensive production margins.
