How the Shale Boom Has Transformed the US Oil and Gas Industry
The shale revolution has dramatically changed the position of the United States as an energy producer.
- To assess changes in the supply responsiveness of the US oil and gas sectors, we analyzed 2000–2015 drilling and production data from approximately 62,000 gas wells in Texas and 164,000 oil wells in the five major oil-producing states.
- For both oil and gas, unconventional wells take somewhat longer than conventional wells to begin production after drilling begins—but they produce much more per well, compensating for the lag time.
- The increased productivity of unconventional wells makes production from shale resources much more sensitive to price.
- Decreased price volatility for natural gas appears to reflect these fundamental market changes, reducing the risk of policy and business decisions dependent on future gas prices.
- Our results point to a significantly larger role for the US incremental supply of oil than before the shale revolution—as well as continued relevance for the US Strategic Petroleum Reserve to respond to short-term market imbalances.
Richard G. Newell
President and CEO, Resources for the Future
Dr. Richard G. Newell is the President and CEO of Resources for the Future. From 2009 to 2011, he served as the administrator of the US Energy Information Administration, the agency responsible for official US government energy statistics and analysis.
Common Resources — Feb 22, 2024
Modeling Deep Decarbonization in the Industrial Sector: Opportunities and Challenges for Modelers and Policymakers
Decarbonizing the industrial sector is a growing priority. To help produce models with high-quality data that inform policy, transparency and dialogue should be fostered among modeling colleagues, policymakers, and the modeling community.
Report — Feb 21, 2024
Policy Incentives to Scale Carbon Dioxide Removal: Analysis and Recommendations
This report surveys the challenges to scaling carbon dioxide removal efforts in the United States and details short-term solutions and long-run policy frameworks.
On the Issues — Feb 9, 2024
On the Issues: Natural Gas Pause, Clean Energy Equity, and More
A biweekly newsletter connecting global current events, pressing climate and energy policy news, and economics research from RFF scholars. This week: natural gas pause, clean energy equity, and more.
Resources Radio — Feb 6, 2024
Are Increased Exports of US Liquefied Natural Gas in the Public Interest?, with Ben Cahill
Ben Cahill discusses the Biden administration’s recent decision to pause approvals of new facilities that export liquefied natural gas and arguments for and against increasing US exports of natural gas.