The U.S. fracking boom: Impact on oil prices

Manuel Frondel and Marco Horvath

No 794, Ruhr Economic Papers from RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen

Abstract: As of late 2008, the steady decline of U.S. crude oil production over the last decades was reversed by the increased adoption of the hydraulic fracturing ("fracking") technology. Adapting the supply-side model proposed by Kaufmann et al. (2004) to assess OPEC's ability to influence real oil prices, this paper investigates the effect of the increase in U.S. oil production due to fracking on world oil prices. Among our key results obtained from (dynamic) OLS estimations, there is a statistically significant negative long-run relationship between increased U.S. oil production and oil prices.

Keywords: dynamic OLS; error correction model; shale oil (search for similar items in EconPapers)
JEL-codes: L71 Q32 Q41 (search for similar items in EconPapers)
Date: 2019
New Economics Papers: this item is included in nep-ene
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Citations: View citations in EconPapers (6)

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Journal Article: The U.S. Fracking Boom: Impact on Oil Prices (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:rwirep:794

DOI: 10.4419/86788922

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