Abstract

http://ssrn.com/abstract=2085027
 


 



The Arithmetic of Shale Gas


Robert M. Ames


Solazyme, Inc.; Yale Graduates Energy Study Group

Anthony Corridore


Lafarge Corp.; Yale Graduates Energy Study Group

Joel Nathan Ephross


Duane Morris LLP

Edward Hirs


University of Houston - Department of Economics; Yale Graduates Energy Study Group; Hillhouse Resources, LLC

Paul W. MacAvoy


Yale School of Management; Yale Graduates Energy Study Group

Richard Tavelli


Yale Graduates Energy Study Group

June 15, 2012


Abstract:     
Academic and professional assessments of shale gas (also known as frac gas) from vast shale formations in the US have focused on the social costs of shale gas development. Using the economic tools of traditional cost benefit analysis, we demonstrate that for one given year, 2010, the consumer surplus from shale gas is in excess of $100 billion to the US economy. The benefit to the US economy of replacing 1.0 million bbls per day of oil consumption with the BTU equivalent of natural gas is in excess of $25 billion.

Number of Pages in PDF File: 19

Keywords: shale gas, energy independence, fracgas, fracking, cost benefit analysis, natural gas, crude oil, energy security, consumer surplus

JEL Classification: Q4, Q3, L95, D00, D6

working papers series


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Date posted: June 16, 2012 ; Last revised: June 26, 2012

Suggested Citation

Ames, Robert M. and Corridore, Anthony and Ephross, Joel Nathan and Hirs, Edward and MacAvoy, Paul W. and Tavelli, Richard, The Arithmetic of Shale Gas (June 15, 2012). Available at SSRN: http://ssrn.com/abstract=2085027 or http://dx.doi.org/10.2139/ssrn.2085027

Contact Information

Robert M. Ames
Solazyme, Inc. ( email )
225 Gateway Blvd.
South San Francisco, CA 94080
United States
Yale Graduates Energy Study Group
New Haven, CT 06520
United States
Anthony Corridore
Lafarge Corp. ( email )
United States
Yale Graduates Energy Study Group
New Haven, CT 06520
United States
Joel Nathan Ephross
Duane Morris LLP ( email )
United States
713-402-3920 (Phone)
Edward Hirs (Contact Author)
University of Houston - Department of Economics ( email )
Houston, TX 77204-5882
United States
713-961-9661 (Phone)
Yale Graduates Energy Study Group
New Haven, CT 06520
United States
Hillhouse Resources, LLC
6255 Burgoyne Road
Houston, TX 77057
United States
Paul W. MacAvoy
Yale School of Management ( email )
920 Indian Beach Dr.
Sarasota, FL 34234
United States
941-952-1692 (Phone)
HOME PAGE: http://yalepress.yale.edu/yupbooks/book.asp?isbn=9780300121285

Yale Graduates Energy Study Group
New Haven, CT 06520
United States
Richard Tavelli
Yale Graduates Energy Study Group ( email )
New Haven, CT 06520
United States
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