The microstructure of the North American oil market

Vincent Kaminski

Energy Economics, 2014, vol. 46, issue S1, S1-S10

Abstract: Recent developments in production of oil and natural gas from the tight sand and shale rock formations (primarily hydraulic fracturing and horizontal drilling) have a profound impact on the North American energy markets. The paper reviews recent crude oil production trends and their impact on the price relationships across different geographical locations in the US and Canada. Price disparity between different market hubs is attributed to the collision between growing volumetric flows of crude oil (as well as changing quality mix of produced crudes) and rigidity of the existing midstream and refining infrastructure. We continue with a discussion of how the North American oil industry adjusts to new disruptive technologies in exploration and production of hydrocarbons.

Keywords: Shale revolution; Hydraulic fracturing; Horizontal drilling; Rail transportation of oil; WTI; Brent (search for similar items in EconPapers)
JEL-codes: Q02 Q4 Q40 Q41 Q47 Q48 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:46:y:2014:i:s1:p:s1-s10

DOI: 10.1016/j.eneco.2014.10.017

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