IDEAS home Printed from https://ideas.repec.org/p/clg/wpaper/2016-44.html
   My bibliography  Save this paper

Fracking and the Elasticity of U.S. Oil Production

Author

Listed:
  • W. D. Walls

    (University of Calgary)

  • Xiaoli Zheng

    (University of Calgary)

Abstract

The revolution in U.S. oil production attributable to the application of hydraulic fracturing to oil shale formations has resulted in a substantive change in the supply elasticities of U.S. oil producers. We estimate the short-run and long-run price elasticities of U.S. oil production before and after the widespread adoption of hydraulic fracturing production techniques in shale oil formations. The estimates suggest that the boom in shale oil production is associated with a smaller magnitude short-run supply adjustment in response to price reductions; we also find a larger magnitude long-run supply adjustment in response to price recoveries. This suggests that the adoption of hydraulic fracturing technology has substantially dampened price adjustments in crude oil markets in a way that has expanded the supply of crude oil, making renewable fuels less competitive with petroleum-based fuels.

Suggested Citation

  • W. D. Walls & Xiaoli Zheng, "undated". "Fracking and the Elasticity of U.S. Oil Production," Working Papers 2016-44, Department of Economics, University of Calgary, revised 18 Nov 2016.
    • Handle: RePEc:clg:wpaper:2016-44
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item

    Statistics

    Access and download statistics

    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:clg:wpaper:2016-44. 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: Department of Economics (email available below). General contact details of provider: https://edirc.repec.org/data/declgca.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.