Price Responsiveness of Shale Oil: A Bakken Case Study

We estimated oil supply from hydraulically fractured horizontal wells completed in North Dakota March 2015 through May 2019. modeled impacts on production of price, capital costs, technological progress, well-to-well interference, and location. Two models were developed: One considered to be a continuous stream (omitting gaps) the other allowed that may discontinuous, with starts, shut-ins, re-starts. Both gave estimates price elasticity higher than non-OPEC general. confirmed rapid decline rates early peaks characterize shale demonstrated that, although various factors can shift up or down, rate remains consistent. Given this, much shorter development time, ramped down more quickly conventional America today. Consequently, response tends dampen long-term cycle moderate shocks have plagued market, macroeconomy.