THE ECONOMIC CONTEXT OF HYDRAULIC FRACTURING FOR GAS AND OIL

The economic context within which hydraulic fracturing has developed plays an important role in evaluating the risks and rewards of its use. The supply and demand realities of the last decade have now thrust these unconventional supplies into the forefront not only domestically but internationally as well. The implications not only will impact the petroleum industry but have the potential to shape international politics.

The social and economic impacts of hydraulic fracturing will play as large a role in the future as the technical and geologic foundations it is based on. This presentation will review the historical economic scenario that has brought US and global fossil fuel supplies to this point and try to distinguish the differences going forward. The goal is to give some added dimension to the academic understanding of this rapidly spreading industrial process for fossil fuel extraction.