The U.S. shale oil, market forces and export ban

Abstract

Shale oil revolution after 2011 changed both the U.S. and world oil markets. In this thesis the market determinants of a shale oil production – Frac Count for the U.S is studied. The empirical evidence suggests that a positive shock to NYMEX, S&P500, rig count, WTI and the U.S. stocks increase the Frac Count but higher interest rate and the U.S. total oil production decrease Frac Count. After the U.S. became one of the major oil producers, it removed its crude export ban in December 2015. The empirical evidence also suggests that the shale oil industry gets more integrated with the financial system and be more efficient in its production process in the post 2016 era after the export ban has been removed.