Effects of US foreign and domestic shocks on US shale oil production across different basins. (December 2022)

• Record Type: Journal Article
• Authors: Ugur, Hatice Kubra; Dogan, Nukhet; Berument, M. Hakan
• Is Part Of: Resources policy. Volume 79(2022)
• Publication Date: 2022-12
• Subjects: Shale oil -- Shale basins -- Factor augmented vector autoregressive model; Q40 -- Q42 -- Q43 -- C51; Mines and mineral resources -- Periodicals; Ressources minérales -- Périodiques; Ressources naturelles -- Gestion -- Périodiques; Environnement -- Politique gouvernementale -- Périodiques; 333.8
• DOI: 10.1016/j.resourpol.2022.102991
• Languages: English
• ISSNs: 0301-4207

Abstract

Abstract: Developments in shale oil production technologies made the US, already the most important oil consumer, an important oil producer and exporter. This paper examines the response of shale oil production across eight production basins in the US to both US domestic and foreign oil demand shocks. The empirical evidence reveals that shale oil production in the Permian basin responds to PADD 3 Exports shocks faster, and Western/Eagle Ford responds more rapidly to Refinery Utilization Rate shocks. On the other hand, the Appalachian basin responses to PADD 3 Exports and Refinery Utilization Rate shocks are slower/weaker than other basins. Moreover, basins closer to the PADD 3 region have stronger responses, whereas basins farther from the PADD3 have weak ones. Highlights: Shale oil in the Permian basin respondses to PADD 3 Exports shocks are faster. Shale oil in Western/Eagle Ford responds more rapidly to Refinery Utilization Rate. The Appalachian respondses to PADD 3 Exports and Refinery Utilization are small. Basins closer to the PADD 3 region have strong responses. Basins farther from the PADD3 have a weaker responses.