The economic impact of shale gas extraction: A review of existing studies

Unconventional Gas and Oil Development in the United States: Economic Experience and Policy Issues

“…Such use of Input-Output models has drawn strong criticism (e.g., Kay, 2011;Kinnaman, 2011;White, 2012) because the changes potentially violate critical assumptions of IO analysis and the lack of forming a valid counterfactual. In addition, many of these studies were funded by industry, so their results have been viewed with suspicion, particularly because of some of their assumptions, and the pro-drilling perspective some have taken.…”

“…For example, the Considine et al (2010) study of Marcellus Shale in Pennsylvania generated significant positive and negative publicity, in part because it was released at the height of debate in the Pennsylvania General Assembly regarding Governor Rendell's proposal to levy a severance tax, and took a strong prodrilling stance. Academics (Kay, 2011;Kinnaman, 2011) and citizens (such as Bogle, 2011) responded with critiques of the analysis, pointing out major issues with the analysis and tone, and raising questions about Penn State University's involvement with the report. In a subsequent letter to a citizen's group, the Dean of Penn State's College of Earth and Mineral Sciences, said that the researchers "may well have crossed the line between policy analysis and policy advocacy," and that they should have been "more scholarly and less advocacy-minded" (PressConnects, 2010).…”

Improving the Global Energy Industry by Integrating Macro-Technologies: Challenges and Opportunities for Corporations

“…It has also been successful from an economic point of view, because it has stabilized international gas prices and has disconnected the gas price from the oil price, which is a fact that can have extraordinary consequences for the future of the Energy Industry [19].…”

“…The case was different with shale gas, started in 2005 in Texas as a private activity mainly [17][18][19][20], which has commercially exploded under Obama's Administration, with very little political and environmental opposition [21]. Moreover, there are public approaches from the USA to China and Poland to stimulate shale gas extraction in those countries.…”

Current perspectives on unconventional shale gas extraction in the Appalachian Basin

“…[16] Several studies funded by industry sources (e.g., Considine et al, 2009, 2010) [14,15] have come under scrutiny for inflating the economic impacts as a result of overstated assumptions (e.g., 95% of industry spending would occur within the state; royalties to landowners would be spent immediately and within the state) and using a more suitable economic model that was more sensitive to changes in drilling activity such as natural gas price and other variables. [17] The economic gains that may be garnered from drilling must be weighed against existing industries such as agriculture, tourism, outdoor ventures (e.g., fishing, hunting, and camping), and wineries, which may be substantially impacted or lost. For example, a recent study by the Penn State Extension documented a loss in number of dairy cows of around 18% in areas with Marcellus drilling activity.…”