Oil and Gas

The oil and gas industry is characterized by a lot of volatilities as it is highly vulnerable to various shocks including seasonal factors and geopolitical issues. The global drive for cleaner energy sources introduces a new dimension to the oil and gas industry.  This, therefore, necessitates the need for the industry to strengthen its resilience and adaptation in a fast-changing energy world. The optimal resource extraction of the non-renewable is anchored on the optimal exhaustion model. Hence, with the bounded rationality theory, prior information about market fundamentals of the oil and gas sector can be useful in decision-making that aims to optimize and leverage the short-term opportunity of the volatility.