Unlocking the shale potential: examining the effects on oil prices and the potential for global adoption
| Autor: | Md. Raghib Nadeem, Shujaat Naeem Azmi |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2024 |
| Předmět: | |
| Zdroj: | Cogent Economics & Finance, Vol 12, Iss 1 (2024) |
| Druh dokumentu: | article |
| ISSN: | 23322039 2332-2039 |
| DOI: | 10.1080/23322039.2024.2402029 |
| Popis: | 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. |
| Databáze: | Directory of Open Access Journals |
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