Unconventional Gas and Oil Development in the United States: Economic Experience and Policy Issues

This paper examines the economic experience of past energy booms and of current unconventional shale gas and oil development. It focuses on key economic characteristics of gas and oil development, such as its employment potential, the geography of such development, its boom-bust nature, and the economic experience with shale oil and gas development. This background is used to discuss important economic policy issues arising with unconventional oil and gas development, such as taxation, governmental use of those revenues, preemption, and equity in the distribution of costs and benefits. The paper concludes with economic policy recommendations for states and communities affected by such development