The Effect of US Shale Oil Production on Local and International Oil Markets

AL-dirawi Rodhan, Maitham (2023) The Effect of US Shale Oil Production on Local and International Oil Markets. International Journal of Energy Economics and Policy, 13 (4). pp. 433-443. DOI

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US shale oil has created dramatic changes in international oil markets. The United States became the world's biggest producer of crude oil after it overtook Saudi Arabia and Russia and then returned to exporting crude oil after a stop that lasted more than four decades. Its imports of crude oil decreased significantly. US shale oil had a remarkable impact on the structure of international crude oil trade; Other producers, including OPEC, were affected by the decline in their shares in the global oil market and the decline in their financial revenues. Technological development has played an essential role in the success of US shale oil by reducing costs and increasing economic feasibility. Therefore, US shale oil is no longer highly sensitive to lower oil prices, as it was before. Furthermore, the continuous increase in crude oil prices from 97 and $111.6 in 2008 and 2012, respectively, was enough to make shale oil production economically profitable. Now, the United States plays an essential role in the global oil market, as the largest consumer and producer and, behind China, the second largest importer. Shale oil is expected to play a growing role in the US oil sector and the global oil industry in the future.

Item Type:Article
Uncontrolled Keywords:US Shale Oil, Crude Oil Price, International Oil Markets, OPEC, Fiscal and External Break-even Price
JEL classification:L12 - Monopoly, Monopolization Strategies
Q41 - Energy: Demand and Supply; Prices
Q43 - Energy and the Macroeconomy
Divisions:Corvinus Doctoral Schools
Subjects:Energy economy
Commerce and tourism
ID Code:8448
Deposited By: MTMT SWORD
Deposited On:27 Jul 2023 13:21
Last Modified:27 Jul 2023 13:21

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