Author
Listed:
- Md. Raghib Nadeem
- Shujaat Naeem Azmi
Abstract
Over the last decade, a significant concern in the energy market has been the decline in the USA’s oil imports and fall in energy prices. In this context, we investigate the impact of the shale revolution in the USA on oil prices and examine its potential replicability in other shale-rich countries. Employing the Auto Regressive Distributive Lag Model (ARDL), the influence of the shale energy boom on WTI oil prices has been quantified, using monthly time series data from 2008 to 2019. The results reveal that shale oil output has no effect on oil prices in the short run. However, we found a significant negative impact on oil prices in the long run, as shale development enhances the global energy supply. Additionally, we found that the shale rich countries lack the infrastructure, financing, and have limited property rights, which hampers their chances of replicating the success of shale development in USA. We recommend that countries trying to develop shale resources invest in factors that led to the shale revolution in the USA. Additionally, as low oil prices will reduce future investment in shale oil and gas exploration, the US government should offer adequate incentives for private firms to remain competitive in the energy sector and continue enjoying the benefits of the shale revolution.The paper “Unlocking the Shale Potential: Examining the Effects on Oil Prices and the Potential for Global Adoption” offers critical insights into the transformative impact of the shale revolution on the U.S. energy landscape and global oil markets. Through the utilization of the Auto Regressive Distributive Lag (ARDL) model and an examination of more than ten years of data, this research highlights the crucial role played by U.S. crude oil output and OPEC’s oil supply tin driving down the global oil prices. The results draw attention to the possible financial implications associated with prolonged low oil prices, especially in terms of deterring future investments in shale oil exploration. Additionally, this study provides a roadmap for other countries with untapped shale reserves to contribute to global energy security and price stabilization by examining the possibilities for shale technology adoption on a worldwide scale.
Suggested Citation
Md. Raghib Nadeem & Shujaat Naeem Azmi, 2024.
"Unlocking the shale potential: examining the effects on oil prices and the potential for global adoption,"
Cogent Economics & Finance, Taylor & Francis Journals, vol. 12(1), pages 2402029-240, December.
Handle:
RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2402029
DOI: 10.1080/23322039.2024.2402029
Download full text from publisher
As the access to this document is restricted, you may want to search for a different version of it.
Corrections
All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:oaefxx:v:12:y:2024:i:1:p:2402029. See general information about how to correct material in RePEc.
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
We have no bibliographic references for this item. You can help adding them by using this form .
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/OAEF20 .
Please note that corrections may take a couple of weeks to filter through
the various RePEc services.