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Where \(Q_{O,b,t}\) is the net present oil produced in a basin state pair b, at time t, \(P_{WTI}\) is the West Texas Intermediate futures price, \(P_{HH}\) is the futures price of the Henry Hub spot market, \(\theta_{t}\) is a month dummy, and \(\gamma_{b,t}\) is a variable that represents the amount of monetary damage from natural disasters.\newline
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\textbf{Two-stage Least Square is used, with instruments of:}
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\textbf{Three-stage Least Square is used, with instruments of:}
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\begin{enumerate}
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\item{VAR model residuals of oil refinery volumes, and gas storage}
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\item{Regional population weighted cooling and heating degree days}
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