Experiential Gains with a New Technology: An Empirical Investigation of Hydraulic Fracturing

In conjunction with technologies such as horizontal drilling, hydraulic fracturing has transformed U.S. and world energy outlooks by adding reserves from unconventional resources. Fracturing was developed by experimentation and experience. This study empirically analyzes fracturing data for wells in the Williston Basin in North Dakota and Montana, focusing on firms’ ability to improve well production over time through collaboration. Results suggest that producers gain from experience with fracturing and that proprietary additives are not generally correlated with greater production but have value for some firms. Experiential gains are stronger for operators than for contractors, but some operator-contractor pairings have productive value.


Issue Date:
2015-08
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/207739
Published in:
Agricultural and Resource Economics Review, Volume 44, Number 2
Page range:
83-105
Total Pages:
23




 Record created 2017-04-01, last modified 2017-08-28

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