ABSTRACT
The oil industry is experiencing a critical situation as the Covid-19 pandemic outbreak. There are several challenges that facing the industry specially the investors as the global decline in demand for Energy merchandises, the future exploration and development drilling in new assets that require massive investments is still uncertain based on the current market price and conditions. The much-reported fall in oil prices and the acute pressure on IOCs to survive in this environment led the companies to stop many ongoing projects and shrink work profile that affected the oil production all over the world. The situation in Egypt is quite challenging for the investors as Egypt is a big consumer, along with the political stability that kept the economy running directed the big IOCs to embrace innovative approaches to lower the operating costs that has the direct impact on the cost per barrel to support maintaining the country growth and secure current energy demand. Dragon Oil company as newly introduced to Egypt's market after acquiring the market shares of one of the major joint ventures in Egypt (Gulf of Suez Petroleum Company- GUPCO) in October 2019 has faced the same dilemma of exerted pressure on the expenditures (Capex and Opex) in order to cope with the global market circumstances. However that didn't deter the company to embrace an innovative way of thinking and handling for the situation. Dragon Oil/GUPCO multi-disciplinary teams achieved successfully a production incremental increase of 10,000 barrels per day through the past six month by adapting a strategic management innovative plans, alternative lower cost technical solutions, production optimization and introducing new proved technologies to the 50 years old assets. This paper will highlight the complete workflow adopted by GUPCO/Dragon Oil teams covering the whole process aspects;appraise, select, define and execution phases to achieve the company goals. The work done was including restoring production from Shut-in offshore platforms or wells via fixing the surface network using neoteric solutions, widely applying rigless interventions using several new techniques in the current producers to maximize their production and optimizing the production cycle across the four production chokes In Summary, Dragon Oil/GUPCO teams managed to increase GUPCO's production despite of the restricted budget and the negative impact of COVID-19 pandemic on the oil price and reach an outstanding performance in operation excellence and safety aspects that results in arresting the natural decline and increase the growth production by about 15% from the 2019 Average production. Copyright © 2023, Society of Petroleum Engineers.
ABSTRACT
In this paper, the short-, medium-, and long-term effects of the COVID-19 pandemic on the Italian power system, particularly electricity consumption behavior and electricity market prices, are investigated by defining various metrics. The investigation reveals that COVID-19 lockdown caused a drop in load consumption and, consequently, a decrement in day-ahead market prices and an increase in ancillary service prices. © 2015 CSEE.
ABSTRACT
While luxury is traditionally known as "extravagant” and "wasteful,” increasingly more researchers and practitioners have begun to refocus on the sustainable side of luxury and promote the idea of "positive luxury” (Batat et al., 2021). One effort is to adopt more positive business models, such as recycling/reusing/sharing luxury goods. Previously existing in the shadow of the primary market, the secondhand luxury market has grown rapidly in the past few years, and this trend accelerated after the COVID-19 outbreak. The emerging secondhand luxury market calls for more research as it has some distinguishing features. One of them is that information asymmetry regarding product quality is a big hurdle preventing many consumers from purchasing. This research uses a secondary dataset from a leading secondhand luxury goods resale platform to investigate factors influencing consumers' decision-making and how sellers can use information disclosure and pricing strategies to reduce frictions. Using negative binomial regression analyses, we detect a positive information disclosure effect. In particular, providing more product information through visual cues helps secondhand luxury sellers promote their products, as it reduces information asymmetry between sellers and buyers (Turunen & Poyry, 2019). However, this effect is moderated by the condition of secondhand luxury products. The information disclosure effect is weaker for products with better conditions, possibly because these products have relatively smaller product quality variation and less information asymmetry. Additionally, we find that different from the traditional luxury market, the overall price effect is negative in the secondhand luxury market. This could be because the negative substitution effect of price is stronger than the price-prestige effect in the secondhand market since the quality of secondhand luxury goods is typically lower and prevents high prices from providing prestige to consumers (Yao et al., 2022). Interestingly, this effect is also moderated by product conditions, possibly because consumers are willing to pay a higher price premium for high-quality products with better conditions to signal their tastes or status (Dubois et al., 2021, Vilkari, 2021). As the first empirical paper to analyze secondary transaction data to explore the pre-owned luxury market, this study's results have important managerial implications. Results suggest that sellers should be more transparent and provide more information about their products. The negative price effect among products in better condition is weaker than that for products in worse condition, suggesting that sellers of better or newer products could charge a higher price premium if they advertise more of a product's price-prestige value. © 2023, The Author(s), under exclusive license to Springer Nature Switzerland AG.
ABSTRACT
In pricing extreme mortality risk, it is commonly assumed that interest rate and mortality rate are independent. However, the COVID-19 pandemic calls this assumption into question. In this paper, we employ a bivariate affine jump-diffusion model to describe the joint dynamics of interest rate and excess mortality, allowing for both correlated diffusions and joint jumps. Utilizing the latest U.S. mortality and interest rate data, we find a significant negative correlation between interest rate and excess mortality, and a much higher jump intensity when the pandemic experience is considered. Moreover, we construct a risk-neutral pricing measure that accounts for both diffusion and jump risk premia, and we solve for the market prices of risk based on mortality bond prices. Our results show that the pandemic experience can drastically change investors' perception of the mortality risk market in the post-pandemic era. © 2022 Elsevier B.V.
ABSTRACT
In pricing extreme mortality risk, it is commonly assumed that interest rate and mortality rate are independent. However, the COVID-19 pandemic calls this assumption into question. In this paper, we employ a bivariate affine jump-diffusion model to describe the joint dynamics of interest rate and excess mortality, allowing for both correlated diffusions and joint jumps. Utilizing the latest U.S. mortality and interest rate data, we find a significant negative correlation between interest rate and excess mortality, and a much higher jump intensity when the pandemic experience is considered. Moreover, we construct a risk-neutral pricing measure that accounts for both diffusion and jump risk premia, and we solve for the market prices of risk based on mortality bond prices. Our results show that the pandemic experience can drastically change investors' perception of the mortality risk market in the post-pandemic era.
ABSTRACT
This study investigated the effects of COVID-19 on the market prices, spending on fish purchases, and consumer satisfaction level based on a random survey of 247 fish consumers in Bangladesh. The Propensity Score Matching (PSM) was employed to make comparisons between two consumer groups (who consumed Pre-COVID-19 and during COVID-19). Besides, consumer satisfaction with income, purchase frequency, quantity consumed, market price, fish quality, and availability during the pandemic was analyzed using the relative index, while the Tobit regression model was used to estimate the determinants of satisfaction level. Prices of cultured and captured fish species such as pangas, catla, mrigel, common carp, mola, tengra, bayeem, boal, shoil, have experienced sharp price fluctuation during COVID-19 due to supply chain disruptions and changing fish supplies in the market. The reduction in expenses on culture fish species varied from $4.190 to $4.212 while the reduction in expenses on capture fish species ranged from $7.985 to $8.178. In addition, low-income individuals are relatively less satisfied with their income, amount, frequency, and price of fish purchases than the lower middle, upper middle- and high-income groups. Consumer satisfaction declined during COVID-19 while income, frequency, and quantity of purchases plummeted and fish market prices increased. Therefore, the government might place a greater emphasis on eradicating supply chain disruption during pandemic like COVID-19 by avoiding nationwide lockdown to maintain stability in the market prices of fish, spending on fish purchases, consumer income, and make all income groups satisfied.
ABSTRACT
Our goal is to examine the efficiency of different intraday electricity markets and if any of their price prediction models is more accurate than others. The focus is on the German intraday market for electricity. We want to find out whether the COVID-19 crisis has an influence on the price development. This paper includes a comprehensive review between Germany, France and Norway (NOR1) day-ahead and intraday electricity market prices. These markets represent different energy mixes which would allow us to analyse the impact of the energy mix on the efficiencies of these markets. To draw conclusions about extreme market conditions (i) we reviewed the market data linked to COVID-19. We expected a higher volatility in the lockdowns than before and therefore decrease in efficiency of the prediction models. With our analysis, (ii) we want to draw conclusions as to whether a mix based mainly on renewable energies such as that in Norway implies lower volatilities even in times of crisis. This would answer the question (iii) whether a market with an energy mix like Norway is more efficient in highly volatile phases. For the analysis we use data visualization and statistical models as well as sample and out-of-sample data. © 2022, The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd.
ABSTRACT
Historically, the petroleum industry has been a significant contributor to global economic growth. The drop in oil and gas demand, coupled with travel restrictions due to the COVID-19 pandemic caused a drop in global oil market prices. This has resulted in a drop in the output in the global economy. These drop-in output means that there were losses associated with the COVID-19 pandemic. The aim of this study is to evaluate and investigate the economic effect of the coronavirus pandemic on the oil and gas industry in Ghana. The evaluation was done using economic performance indicators such as GDP and Crude oil prices. In addition to this, a loss function-based algorithm was used to model the projected economic loss during this period. To demonstrate the model, data was collected from a study site and used in the model. The study is useful for decision making on the preparedness for future pandemics, especially in oil dependent countries. © 2022, Society of Petroleum Engineers.
ABSTRACT
Our goal is to examine the efficiency of different intraday electricity markets and if any of their price prediction models are more accurate than others. This paper includes a comprehensive review of Germany, France, and Norway’s (NOR1) day-ahead and intraday electricity market prices. These markets represent different energy mixes which would allow us to analyze the impact of the energy mix on the efficiencies of these markets. To draw conclusions about extreme market conditions, (i) we reviewed the market data linked to COVID-19. We expected higher volatility in the lockdowns than before and therefore decrease in the efficiency of the prediction models. With our analysis, (ii) we want to draw conclusions as to whether a mix based mainly on renewable energies such as that in Norway implies lower volatilities even in times of crisis. This would answer (iii) whether a market with an energy mix like Norway is more efficient in highly volatile phases. For the analysis, we use data visualization and statistical models as well as sample and out-of-sample data. Our finding was that while the different price and volatility levels occurred, the direction of the market was similar. We could find evidence that our expectations (i–iii) were met. © 2022 by the authors. Licensee MDPI, Basel, Switzerland.
ABSTRACT
The present research study examines the impact of Stock marketson Gold prices using daily data for pre and during COVID-19 period (January-October 2020). This study uses Unit root test, Granger causality test, GARCH method and Johansen's co-integration test to evaluate difference in the Volatility as well as the relationship between them. The findings show that no causal relationship exists between Gold Prices and Stock market prices in the short run. The result of the Johansen Co-integration test for the long-run relationship between theGold price and Nifty Indices showno co-integration at all, but low co-integration inshort-run cannot be ruled out. With this study, an attempt has been made to reveal the relationship that exists between Gold and stock markets with empirical findings using the time series analysis which reveals the original side of work during the pandemic. The ARCH and GARCH coefficient explain significantly the persistence of information on stock return volatility. The present study recommends that the integration between Gold and Stock market price entails the need for investors globally to follow a portfolio stock selection strategy to add value from the investments in India.These findings have important implication for the investors seeking portfolio diversification. © 2021. Transnational Press London. All Rights Reserved.
ABSTRACT
This study proposes a method for calculating the appropriate medical treatment price level for foreign visitors (FVs) in Japan. Hospital management costs and foreign prices were analyzed from a market principles perspective to determine the medical treatment price. The study involved two stages: a preliminary survey and an extended survey, supplemented by an international survey. Relatively frequent diseases were selected, and the costs incurred by hospitals for the treatment of FVs were analyzed though data from three hospitals, covering 24 outpatients and 4 inpatients. Payments made by three insurance companies for overseas medical institution services for Japanese tourists with pharyngitis were analyzed. This study shows that the appropriate medical treatment prices for FVs, considering profits, were 1.22-4.26 times higher compared with prices under Japan's public health insurance plans. Furthermore, these prices were 1.31-4.26 times higher for outpatients with pharyngitis and external injury and 1.22-3.66 times higher for inpatients with appendicitis and femoral fractures. The price of pharyngitis treatment in 12 countries was USD 20.32-158.75 per patient for Japanese tourists, whereas FVs paid 60.24 dollars (1.13 times higher than Japan's public healthcare price) in Japan. This study shows it was appropriate to set the ideal price level for FVs higher than that for Japanese patients.