Date of Award

6-2013

Document Type

Open Access

Degree Name

Bachelor of Arts

Department

Economics

Second Department

Environmental Science and Policy

First Advisor

J. Douglass Klein

Language

English

Keywords

gas, drilling, shale, fracturing

Abstract

This paper attempts to quantify how the rapid increase in shale gas production in the past fifteen years has impacted regional natural gas spot prices. This method of natural gas extraction-pumping water mixed with sand and clay first vertically and then horizontally, with clay and sand particulates holding fractures open to allow the flow of natural gas-has a shorter well lifespan and faster decline rate than conventional wells. Through analyzing the degree of market integration between shale gas production and spot prices, we can quantify what impact different shale plays have had on the regional pricing of natural gas. With this information, we can then discuss how the exploitation of the Marcellus Shale, a relatively untapped shale play in the Northeast, could impact different natural gas price regions.

Share

COinS