The impact of the shale oil revolution on U.S. oil and gasoline prices
- This article examines how the shale oil revolution has shaped the evolution of U.S. crude oil and gasoline prices. It puts the evolution of shale oil production into historical perspective, highlights uncertainties about future shale oil production, and cautions against the view that the U.S. may become the next Saudi Arabia. It then reviews the role of the ban on U.S. crude oil exports, of capacity constraints in refining and transporting crude oil, of differences in the quality of conventional and unconventional crude oil, and of the recent regional fragmentation of the global market for crude oil for the determination of U.S. oil and gasoline prices. It discusses the reasons for the persistent wedge between U.S. crude oil prices and global crude oil prices in recent years and for the fact that domestic oil prices below global levels need not translate to lower U.S. gasoline prices. It explains why the shale oil revolution unlike the shale gas revolution is unlikely to stimulate a boom in oil-intensive manufacturing industries. It also explores the implications of shale oil production for the transmission of oil price shocks to the U.S. economy.
Author: | Lutz KilianGND |
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URN: | urn:nbn:de:hebis:30:3-360970 |
URL: | http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2538422 |
Parent Title (English): | Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 499 |
Series (Serial Number): | CFS working paper series (499) |
Publisher: | Center for Financial Studies |
Place of publication: | Frankfurt, M. |
Document Type: | Working Paper |
Language: | English |
Year of Completion: | 2014 |
Year of first Publication: | 2014 |
Publishing Institution: | Universitätsbibliothek Johann Christian Senckenberg |
Release Date: | 2014/12/15 |
Tag: | U.S. oil independence; capacity constraints; export ban; infrastructure; oil sands; oil trade; refining; shale oil; tight oil; unconventional oil |
Issue: | December 5, 2014 |
Page Number: | 43 |
HeBIS-PPN: | 352198796 |
Institutes: | Wirtschaftswissenschaften / Wirtschaftswissenschaften |
Wissenschaftliche Zentren und koordinierte Programme / Center for Financial Studies (CFS) | |
Dewey Decimal Classification: | 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft |
Sammlungen: | Universitätspublikationen |
Licence (German): | Deutsches Urheberrecht |