The Impact of the Fracking Boom on Arab Oil Producers
By Lutz Kilian. Social Science Research Network, 2016
121 citations recorded by the source corpus.
ABSTRACT This article makes four contributions. First, it investigates the extent to which the U.S. fracking boom has caused Arab oil exports to decline since late 2008. Second, the article quantifies for the first time by how much the U.S. fracking boom has lowered the global price of oil. Using a novel econometric methodology, it is shown that in mid-2014, for example, the Brent price of crude oil was lower by $10 than it would have been in the absence of the fracking boom. Third, the article provides evidence that the decline in Saudi net foreign assets between mid- 2014 and August 2015 would have been reduced by 27% in the absence of the fracking boom. Finally, the article discusses the policy choices faced by Saudi Arabia and other Arab oil producers.
Subfields: Economics and Econometrics, Renewable Energy, Sustainability and the Environment
View Paper: https://www.semanticscholar.org/paper/11bada1a5ee6fbcf104f17283ae3b8ab7f3bbc3b
How researchers see this paper
The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.
In Economics and Econometrics
- Xiaoqing Zhou
- Lutz Kilian
- George Filis
- Christiane Baumeister
- Robert J. Vigfusson
- Matteo Manera
- Rangan Gupta
- G. Peersman
In Renewable Energy, Sustainability and the Environment
- Xiaoqing Zhou
- Lutz Kilian
- George Filis
- Christiane Baumeister
- Robert J. Vigfusson
- Matteo Manera
- G. Peersman
- Rangan Gupta
Citations in the corpus
- Modeling fluctuations in the global demand for commodities (2018, unknown): “…commodities (see, e.g., Alquist et al. 2013; Alquist and Coibion 2014), in designing fiscal policies in commodity-exporting economies (see, e.g., Kilian 2017), in modeling the determinants of commodity prices (see, e.g., Kilian 2009a; Kilian and Murphy 2014; Khalil 2017; Stürmer 2018; Bornstein…”
- Oil Prices, Exchange Rates and Interest Rates (2019, background): “We also follow the recent literature in imposing the restriction that the response of the real price of oil to the first three shocks is positive not only on impact, but for the first 12 months (e.g., Inoue and Kilian 2013; Kilian 2017).”