\begin{frame}{Oil and Gas Production: Econometric Model }
	\begin{block}{Estimated model}
		\begin{equation}
			Q_{O,b,t}=\beta_{1} Q_{O,b,t-1}+\beta_{2} P_{WTI,t-1}+\beta_{3} P_{HH,t-1}+\beta_{4}\theta_{t}+\gamma_{t,b}+\epsilon_{b,t}  
	\end{equation}
\end{block}
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.\footnote{(Gilbert and Gavin, 2020)}\newline 


\textbf{Three-stage least squares is used with instruments of:}
	\begin{enumerate}
		\item{Oil refinery shocks}
		\item{Natural gas storage shocks}
		\item{Regional population weighted cooling and heating degree days}
		\item{Sum of the standard deviation of each instrument over the preceding 12 months}
	\end{enumerate}

\end{frame}