How fracking could cushion oil price shocks
Published Date: 3/4/2022
Source: phys.org
Fracking, or the extraction of oil and gas from shale rock formations, is suddenly more attractive with the surge in oil prices fueled by Russia's invasion of Ukraine. The conflict threatens disruption of natural gas flows from Ukraine to Europe, while oil companies with interests in Russia could be caught in the crossfire of sanctions by the U.S. and European countries. A recent research paper by experts at Wharton and elsewhere titled "A World Equilibrium Model of the Oil Market" makes the business case for fracking as a viable mitigating factor to soften the impact of oil and gas price shocks.