Heterogeneous Oil Supply Elasticities: Indebtedness and Production Responses to the COVID-19 Shock

• 成果类型: Article
• 署名作者: Seleznev, Sergei; Selezneva, Veronika
• 署名单位: University of Cyprus; Universite PSL; Universite Paris-Dauphine
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454; 1465-7368
• DOI: 10.1093/rfs/hhaf099
• 发表日期: 2026-09
• 页码: 2963-3034
• 关键词: G32; D22; Q41; financial constraints; RISK-MANAGEMENT; debt; real

摘要

Debt matters for oil supply elasticities. We document the resiliency of oil production to the COVID-19-related collapse in demand due to indebtedness. We use exogenous variation in the timing of debt-related payments to identify financially constrained operators. We show that more financially constrained firms cut production by less than less-constrained firms and were less likely to complete new wells. To explore the mechanisms, we use borrowing-limit cuts and credit-line drawdowns to measure access to credit, and we exploit failed hedging practices. The propagation of oil demand shocks crucially depends on the indebtedness of the oil sector.