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Experiential Gains with a New Technology: An Empirical Investigation of Hydraulic Fracturing

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  • Fitzgerald, Timothy

Abstract

In conjunction with technologies such as horizontal drilling, hydraulic fracturing has transformed U.S. and world energy outlooks by adding reserves from unconventional resources. Fracturing was developed by experimentation and experience. This study empirically analyzes fracturing data for wells in the Williston Basin in North Dakota and Montana, focusing on firms' ability to improve well production over time through collaboration. Results suggest that producers gain from experience with fracturing and that proprietary additives are not generally correlated with greater production but have value for some firms. Experiential gains are stronger for operators than for contractors, but some operator-contractor pairings have productive value.

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  • Fitzgerald, Timothy, 2015. "Experiential Gains with a New Technology: An Empirical Investigation of Hydraulic Fracturing," Agricultural and Resource Economics Review, Cambridge University Press, vol. 44(2), pages 83-105, August.
    • Handle: RePEc:cup:agrerw:v:44:y:2015:i:02:p:83-105_01
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    Cited by:

    1. Smith, James L. & Lee, Thomas K., 2017. "The price elasticity of U.S. shale oil reserves," Energy Economics, Elsevier, vol. 67(C), pages 121-135.
    2. Burnett, J. Wesley, 2015. "FOREWORD: Unconventional Oil and Gas Development: Economic, Environmental, and Policy Analysis," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 44(2), pages 1-15, August.
    3. Charles F. Mason and Gavin Roberts, 2018. "Price Elasticity of Supply and Productivity: An Analysis of Natural Gas Wells in Wyoming," The Energy Journal, International Association for Energy Economics, vol. 0(Special I).
    4. Smith, James L., 2018. "Estimating the future supply of shale oil: A Bakken case study," Energy Economics, Elsevier, vol. 69(C), pages 395-403.
    5. Max Harleman & Pramod Manohar & Elaine L. Hill, 2022. "Negotiations of Oil and Gas Auxiliary Lease Clauses: Evidence from Pennsylvania’s Marcellus Shale," NBER Working Papers 30806, National Bureau of Economic Research, Inc.
    6. Michael Redlinger & Ian Lange & Peter Maniloff, 2016. "Interfirm Learning Economies in Drilling and Environmental Safety," Working Papers 2016-10, Colorado School of Mines, Division of Economics and Business.
    7. Montgomery, J.B. & O’Sullivan, F.M., 2017. "Spatial variability of tight oil well productivity and the impact of technology," Applied Energy, Elsevier, vol. 195(C), pages 344-355.

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