[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/rff/dpaper/dp-16-32.html
   My bibliography  Save this paper

Trophy Hunting vs. Manufacturing Energy: The Price-Responsiveness of Shale Gas Abstract: We analyze the relative price elasticity of unconventional versus conventional natural gas extraction. We separately analyze three key stages of gas production: drilling wells, completing wells, and producing natural gas from the completed wells. We find that the important margin is drilling investment, and neither production from existing wells nor completion times respond strongly to prices. We estimate a long-run drilling elasticity of 0.7 for both conventional and unconventional sources. Nonetheless, because unconventional wells produce on average 2.7 times more gas per well than conventional ones, the longrun price responsiveness of supply is almost 3 times larger for unconventional compared to conventional gas

Author

Listed:
  • Newell, Richard G.

    (Resources for the Future)

  • Prest, Brian C.

    (Duke University)

  • Vissing, Ashley

    (University of Chicago)

Abstract
No abstract is available for this item.

Suggested Citation

  • Newell, Richard G. & Prest, Brian C. & Vissing, Ashley, 2016. "Trophy Hunting vs. Manufacturing Energy: The Price-Responsiveness of Shale Gas Abstract: We analyze the relative price elasticity of unconventional versus conventional natural gas extraction. We separ," RFF Working Paper Series dp-16-32, Resources for the Future.
    • Handle: RePEc:rff:dpaper:dp-16-32
    as

    Download full text from publisher

    File URL: http://www.rff.org/RFF/documents/RFF-DP-16-32.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    shale gas; unconventional natural gas; price elasticity;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L71 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Hydrocarbon Fuels
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

    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:rff:dpaper:dp-16-32. 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: Resources for the Future (email available below). General contact details of provider: https://edirc.repec.org/data/rffffus.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.