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The Market Structure of Shale Gas Drilling in the United States

Author

Listed:
  • Zhongmin Wang

    (Resources for the Future)

  • Qing Xue

    (China University of Petroleum (Beijing))

Abstract

This paper documents the evolution of the market structure of the modern shale gas drilling industry in the United States from birth to maturity. Modern shale gas drilling represents a major revolution in the energy industry. The industry was highly concentrated during its experimental stage and became less concentrated during its expansion stage, attracting a long tail of infrequent drillers. The evolution of this industry is different from the standard industry life cycle documented in the literature because this industry is driven only by process innovations. Our findings have policy implications for countries new to shale gas development.

Suggested Citation

  • Zhongmin Wang & Qing Xue, 2016. "The Market Structure of Shale Gas Drilling in the United States," Economics Bulletin, AccessEcon, vol. 36(2), pages 793-801.
    • Handle: RePEc:ebl:ecbull:eb-16-00155
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2016/Volume36/EB-16-V36-I2-P78.pdf
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    References listed on IDEAS

    as
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    7. Hu, Desheng & Xu, Shengqing, 2013. "Opportunity, challenges and policy choices for China on the development of shale gas," Energy Policy, Elsevier, vol. 60(C), pages 21-26.
    8. Lucas W. Davis, 2015. "Policy Monitor—Bonding Requirements for U.S. Natural Gas Producers," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 9(1), pages 128-144.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    shale gas; market structure; concentration;
    All these keywords.

    JEL classification:

    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • L7 - Industrial Organization - - Industry Studies: Primary Products and Construction

    Statistics

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