<p>I am trying to do an analysis of the oil industry, and while doing research I came across the following chart that has one of the factors I want to include: Investment Phase vs Exploitation Phase</p>

<p><a href="https://i.sstatic.net/S1imp.png" rel="nofollow noreferrer"><img src="https://i.sstatic.net/S1imp.png" alt="enter image description here"></a></p>

<p>The creators cite the US Energy Information Agency, so at least I know where to find the data. However, what I'm not sure is how do the creators of the graph 'know' where the investment phase begins and ends. </p>

<p><strong>My question is:</strong> How do we know when the industry is in an investment phase? Are we to simply eyeball the graph? Or is there some kind of criterion or statistical heuristic? Perhaps another variable's data is needed?</p>

CC BY-SA 3.0
2017-02-23T18:53:31.683Z
What is the exact source of the graph?
snoram
CC BY-SA 3.0
2017-02-24T12:26:09.267Z
As snoram suggested, give us the resource of the chart if it's available. I don't have experience on the particular topic, so pardon me if the question is not relevant. Investment reflects up to a point the expectations. There is an ongoing discussion whether oil's price is spot to future or future to spot. Does this affect your analysis?
Commissar Vasili Karlovic
CC BY-SA 3.0
2017-02-24T16:10:36.830Z
The full slideshow can be found [here](http://www.goldmansachs.com/our-thinking/pages/the-new-oil-order/#infographics). It is just an overview, not too much content, but maybe more context will help. I'm not sure how much the future/spot component will come into play, but anything affecting the industry as a whole will probably be in the scope of my research. I'm taking a macro perspective.
Arash Howaida
CC BY-SA 3.0
2017-10-25T08:41:09.247Z
I'm not sure if the graph is very trustworthy when it comes to that phase division. I would look at China's, or world's consumption of oil. It could explain a lot of that decrease.
An old man in the sea.
<macroeconomics><mathematical-economics>
How do We Determine the Start or End of Investment Phase for the Oil Industry
Arash Howaida
# How do We Determine the Start or End of Investment Phase for the Oil Industry

(Asked by: username_0 on 2017-02-23)

I am trying to do an analysis of the oil industry, and while doing research I came across the following chart that has one of the factors I want to include: Investment Phase vs Exploitation Phase

[![enter image description here](https://i.sstatic.net/S1imp.png)](https://i.sstatic.net/S1imp.png)

The creators cite the US Energy Information Agency, so at least I know where to find the data. However, what I'm not sure is how do the creators of the graph 'know' where the investment phase begins and ends.

**My question is:** How do we know when the industry is in an investment phase? Are we to simply eyeball the graph? Or is there some kind of criterion or statistical heuristic? Perhaps another variable's data is needed?

**Tags:** macroeconomics, mathematical-economics
> **Comments:**
> **username_1**: What is the exact source of the graph?  
> **username_2**: As snoram suggested, give us the resource of the chart if it's available. I don't have experience on the particular topic, so pardon me if the question is not relevant. Investment reflects up to a point the expectations. There is an ongoing discussion whether oil's price is spot to future or future to spot. Does this affect your analysis?  
> **username_0**: The full slideshow can be found [here](http://www.goldmansachs.com/our-thinking/pages/the-new-oil-order/#infographics). It is just an overview, not too much content, but maybe more context will help. I'm not sure how much the future/spot component will come into play, but anything affecting the industry as a whole will probably be in the scope of my research. I'm taking a macro perspective.  
> **username_3**: I'm not sure if the graph is very trustworthy when it comes to that phase division. I would look at China's, or world's consumption of oil. It could explain a lot of that decrease.  

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## 0 answers

