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American Economic Review: Vol. 103 No. 3 (May 2013)

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Natural Gas: From Shortages to Abundance in the United States

Article Citation

Joskow, Paul L. 2013. "Natural Gas: From Shortages to Abundance in the United States." American Economic Review, 103(3): 338-43.

DOI: 10.1257/aer.103.3.338

Abstract

The history of natural gas wellhead and pipeline regulation, deregulation and regulatory reforms are discussed. These reforms brought natural gas shortages and pipeline inefficiencies to an end. They also created an economic platform that could support unanticipated developments in the supply and costs of domestic natural gas. Such unanticipated developments emerged in the last few years as several technological innovations came together to make it commercially attractive to development US shale gas deposits located deep in the earth. How and why shale gas supplies will lead to dramatic changes in the United States' energy future with appropriate environmental regulatory reforms are discussed.

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Authors

Joskow, Paul L. (MIT)

JEL Classifications

L71: Mining, Extraction, and Refining: Hydrocarbon Fuels
L78: Industry Studies: Primary Products and Construction: Government Policy
Q41: Energy: Demand and Supply
Q48: Energy: Government Policy


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