How is the oil refining industry’s efficiency derived?
The oil refining industry’s efficiency is derived from the prices of petroleum products (Naphtha, Gasoline, Kerosene, Diesel, and Fuel Oil) using the portfolio theory. The panel data was constructed using the following dependent variables, the crude oil production efficiency, energy consumption, renewable energy consumption, and R&D investment.
What is a petroleum refinery?
A petroleum refinery is a set of installations intended to transform crude oil, generally unusable as such, into petroleum products: motor gasoline, jet fuel, diesel fuel, fuel oil, lubricants, liquefied petroleum gases, naphtha, and so on. The products consumed in largest volumes are motor gasoline, motor diesel, and heavy fuel oil.
What is the efficiency index of oil refining industry?
The efficiency index of the oil refining industry is a dependent variable, and the explanatory variables are crude oil production, energy use, renewable energy consumption, and R&D expenditure. Crude oil production can explain industrial efficiency in terms of the ¡°curse of resources¡± ( Hausmann and Rigobon, 2003 ).
Which explanatory variables describe the efficiency of the oil refining industry?
And the explanatory variables describing the efficiency of the oil refining industry (crude oil production, energy use, renewable energy consumption, R&D expenditure, etc.) were selected to form panel data for OECD countries from 2005 to 2016. These panel data generally have heterogeneity and endogenous problems of explanatory variables.