Many studies have been focusing on the impact of the shale gas boom on our society, but the reverse relationship is not well documented. The objective of this paper is to examine the impact of oil and gas prices on shale gas drilling activities. We analyze the well-level production data from all major producing shale gas plays in the United States (US) and identify a major productivity shock in 2009. We then estimate the price elasticity of shale gas drilling using the econometric methods.

This is a chapter in a book entitled “Bioenergies in East Africa between challenges and opportunities” Edited by Marco Setti, Daria Zizzola, 2016.