Template-Type: ReDIF-Article 1.0
Author-Name:  W.D. Walls and Xiaoli Zheng
Title:  Fracking and Structural Shifts in Oil Supply
Classification-JEL: Q41, L71, Q35, L13
Volume:  Volume 43
Issue:  Number 3
Year:  2022
Abstract:  The adoption of hydraulic fracturing (fracking) and horizontal drilling technology substantively altered the structure of oil supply. Using disaggregate state-level data from the U.S, this paper provides empirical evidence that oil supplies are now asymmetric with respect to price changes as a result of the adoption of new production methods. The changed structure of U.S. oil supplyparticularly the low supply elasticities for price declines and large supply elasticities for price increasesis consistent with the ineffectiveness of OPEC policies intended to drown fracking American producers in oil.
Handle: RePEc:aen:journl:ej43-3-Zheng
File-URL: http://www.iaee.org/en/publications/ejarticle.aspx?id=3825
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