Quantitative effects of the shale oil revolution

Cristiana Manescu and Galo Nuño Barrau

Energy Policy, 2015, vol. 86, issue C, 855-866

Abstract: The aim of this paper is to analyze the impact of the so-called “shale oil revolution” on oil prices and economic growth. We employ a general equilibrium model of the world oil market in which Saudi Arabia is the dominant firm, with the rest of the producers as a competitive fringe. Our results suggest that most of the expected increase in US oil supply due to the shale oil revolution has already been incorporated into prices and that it will produce an additional increase of 0.2% in the GDP of oil importers in the period 2010–2018. We also employ the model to analyze the collapse in oil prices in the second half of 2014 and conclude that it was mainly due to positive unanticipated supply shocks.

Keywords: Saudi Arabia; General equilibrium; Shale oil (search for similar items in EconPapers)
JEL-codes: E17 Q41 Q47 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (20)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0301421515002086
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Quantitative effects of the shale oil revolution (2015)
Working Paper: Quantitative effects of the shale oil revolution (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:86:y:2015:i:c:p:855-866

DOI: 10.1016/j.enpol.2015.05.015

Access Statistics for this article

Energy Policy is currently edited by N. France

More articles in Energy Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().