The Impact of U.S. Shale Oil on the Global Oil Market: Case Study, Bakken Shale

Vatter, Marc H.; Van Vactor, Samuel A.; Coburn, Timothy C

doi:10.2139/ssrn.3617185

Download This Paper

Open PDF in Browser

Add Paper to My Library

The Impact of U.S. Shale Oil on the Global Oil Market: Case Study, Bakken Shale

USAEE Working Paper No. 20-452

25 Pages Posted: 2 Jun 2020

See all articles by Marc H. Vatter

Marc H. Vatter

New Hampshire Office of the Consumer Advocate; Rivier University Department of Business and Security Studies; The Economic Utility Group; Brown University Dept. of Economics

Timothy C Coburn

University of Tulsa - School of Energy, Economics, Policy, and Commerce

Date Written: June 2, 2020

Abstract

We examine production from horizontal wells in the Bakken Shale since April of 2015. We find evidence of rapid technological progress, geographic heterogeneity within the play, interference across wells that diminishes production, and that this source of supply is more price-elastic than non-OPEC supply as a whole. We also find the familiar rapid early decline rates characteristic of shale oil, but that production continues at some level long after these early declines. On balance, these results support the view that shale oil has a stabilizing effect on world oil prices.

Keywords: Bakken; horizontal; technology; elasticity

JEL Classification: Q410

Suggested Citation: Suggested Citation

Vatter, Marc H. and Van Vactor, Samuel A. and Coburn, Timothy C, The Impact of U.S. Shale Oil on the Global Oil Market: Case Study, Bakken Shale (June 2, 2020). USAEE Working Paper No. 20-452, Available at SSRN: https://ssrn.com/abstract=3617185 or http://dx.doi.org/10.2139/ssrn.3617185