This dissertation deals with economic efficiency in the energy industry and consists of three parts. The first examines how joint experience between pairs of firms working together in oil and gas drilling improves productivity. Part two asks whether oil producers time their drilling optimally by taking real options effects into consideration. Finally, I investigate the efficiency with which energy is consumed, asking whether extending Daylight Saving Time DST) reduces electricity use. The chapter “Learning by Drilling: Inter-Firm Learning and Relationship Persistence in the Texas Oilpatch” examines how oil production companies and the drilling rigs they hire improve drilling productivity by learning through joint experience. I find that the joint productivity of a lead firm and its drilling contractor is enhanced significantly as they accumulate experience working together. Moreover, this result is robust to other relationship specificities and standard firm-specific learning-by-doing effects. The second chapter, “Drill Now or Drill Later: The Effect of Expected Volatility on Investment,” investigates the extent to which firms drilling behavior accords with a key prescription of real options theory: irreversible investments such as drilling should be deferred when the expected volatility of the investments payoffs increases. I combine detailed data on oil drilling with expectations of future oil price volatility that I derive from the NYMEX futures options market. Conditioning on expected price levels, I find that oil production companies significantly reduce the number of wells they drill when expected price volatility is high. I conclude with “Daylight Time and Energy: Evidence from an Australian Experiment,” co-authored with Hendrik Wolff. This chapter assesses DSTs impact on electricity demand using a quasi-experiment in which parts of Australia extended DST in 2000 to facilitate the Sydney Olympics. We show that the extension did not reduce overall electricity consumption, but did cause a substantial intra-day shift in demand consistent with activity patterns that are tied to the clock rather than sunrise and sunset.