What Can We Learn about Shale Gas Development from Land Values? Opportunities, Challenges, and Evidence from Texas and Pennsylvania

We study farm real estate values in the Barnett shale (Texas) and the northeastern part of the Marcellus shale (Pennsylvania and New York). We find that shale gas development caused appreciation in real estate values in both areas but the effect was much larger for the Marcellus, suggesting broader ownership of oil and gas rights by surface owners. In both regions, the greatest appreciation occurred when land was leased for drilling, not when drilling and production boomed. We find evidence that effects vary by farm type, which may reflect correlation between farm type and ownership of oil and gas rights.


Issue Date:
2015-08
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/207742
Published in:
Agricultural and Resource Economics Review, Volume 44, Number 2
Page range:
40-58
Total Pages:
19




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

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