Oklahoma earthquakes and the price of oil

Movers and Shakers: Stock Market Response to Induced Seismicity in Oil and Gas Business

“…For Exxon Mobil, the AAR on the event day is positive and significant (0.101%), also from an economic perspective. This is in line with the findings in Table 1, with the combined response to induced seismicity in the Netherlands and the US and may be explained following the line of reasoning by [17]. However, the results from the sign test suggest that AARs on day 3 are negative (0.06%) albeit marginally significant.…”

“…This result also is significant from an economic point of view. The positive response can be motivated based on [17], who argues that investors in oil-and gas majors benefit from more production, which is accompanied by more induced seismicity. For day 2, there is a significant positive abnormal return (0.0008%).…”

“…Persistent damage to cultural heritage and real estate from the induced seismicity has led to fierce protests by the local community in Groningen and production may be halted prematurely [16]. Studies after unconventional drilling [6,17] find that project risks have increased in Oklahoma in relation to unconventional mining operations. Other studies [18,19] point at the perception of mining activity in relation to induced seismicity and find that perceived risks have increased.…”

“…It is not necessarily the case that induced seismicity closely connects with these two firms; it is about how induced seismicity associates with investor appreciation of these companies. The companies' cash flows may be affected because there might be reparation costs and because exploitation renders additional revenues [17]. Changes in risk perception can also affect the time period during which fossil fuel can be extracted.…”

The Role of Membrane-Based Technologies in Environmental Treatment and Reuse of Produced Water

“…The state of Oklahoma is a particular example of observed seismic activity associated with subsurface injection sites (Rajesh and Gupta, 2021). Seismicity in Oklahoma has been linked statistically to PW volumes and PW injection rates (Van der Baan and Calixto, 2017; Roach, 2018;Scanlon et al, 2019). PW injection into disposal wells contributes to seismicity mostly by reducing normal stress which causes movement along a pre-existing fault inducing earthquakes (Murray and Holland, 2014;Rubinstein and Mahani, 2015).…”