Show simple item record

dc.contributor.authorAsif Ehsan, Syed Mortuzaen_US
dc.date.accessioned2016-08-10T14:28:50Z
dc.date.available2016-08-10T14:28:50Z
dc.date.issued2016-08-10en_US
dc.identifier.othervt_gsexam:8770en_US
dc.identifier.urihttp://hdl.handle.net/10919/72130
dc.description.abstractHydraulic fracturing has been increasingly used in the USA to economically extract natural gas and oil from newly discovered shale plays. Despite new, more severe, and long term impacts of hydraulic fracturing compared to conventional drilling, regulatory practices are mostly implemented by states that regulate with older regulations that were were written before the widespread use of hydraulic fracturing. This dissertation presents three essays on the economics of hydraulic fracturing. A standard renewable lease in hydraulic fracturing runs for a five-year primary term. The first essay examines the effect of initial contract length on extraction behavior and social costs. It finds that the rate of extraction decreases over time for both, the social planner and the private extractor. In addition, the social planner has a more stable extraction path compared to the private extractor. Holding other things equal, if the social planner seeks to induce a private extractor to leave a higher in situ stock un-extracted, then the optimal contract duration is longer. Simulations illustrate the magnitude of social costs inherent in hydraulic fracturing and non-optimal fixed contract lengths. The second essay investigates the impact of the significantly increased bonding requirements for horizontal wells introduced in West Virginia in December, 2011, on the probability of violation committed by those wells. Results suggest that the increased bonding requirement has reduced the probability of violation by 2.6 to 3.2 percentage points. Moreover, it slightly reduces the number of violations done by horizontal wells. Finally, the third essay explores several aspects of Act-13, introduced on February 14, 2012, by Pennsylvania. This act imposes new fees that are assessed annually for fifteen years, on all unconventional gas wells in Pennsylvania. This chapter explores the impacts of Act-13 on the likelihood of an unconventional well's shut-down, rate of extraction, and probability of violation. Results suggest that wells incurring this increased fee schedule have a significantly higher likelihood (more than three times) of shut-down. Also, Act-13 have reduced the extraction rate, and the probability of violation committed by unconventional wells in Pennsylvania.en_US
dc.format.mediumETDen_US
dc.publisherVirginia Techen_US
dc.rightsThis Item is protected by copyright and/or related rights. Some uses of this Item may be deemed fair and permitted by law even without permission from the rights holder(s), or the rights holder(s) may have licensed the work for use under certain conditions. For other uses you need to obtain permission from the rights holder(s).en_US
dc.subjectHydraulic fracturingen_US
dc.subjectenvironmental externalitiesen_US
dc.subjectdynamic optimizationen_US
dc.subjectsurvival analysisen_US
dc.subjectunconventional wellsen_US
dc.titleThree Essays on the Economics of Hydraulic Fracturingen_US
dc.typeDissertationen_US
dc.contributor.departmentEconomics, Scienceen_US
dc.description.degreePh. D.en_US
thesis.degree.namePh. D.en_US
thesis.degree.leveldoctoralen_US
thesis.degree.grantorVirginia Polytechnic Institute and State Universityen_US
thesis.degree.disciplineEconomicsen_US
dc.contributor.committeechairTideman, Thorwald Nicolausen_US
dc.contributor.committeechairMoeltner, Klausen_US
dc.contributor.committeememberTsang, Kwok Pingen_US
dc.contributor.committeememberAmacher, Gregory S.en_US


Files in this item

Thumbnail

This item appears in the following Collection(s)

Show simple item record