Associate Professor Jeremy Weber, Director of GSPIA’s Shale Gas Governance Center (SGGC), recently discussed the rising price of crude oil with NPR reporter Erika Beras. According to the report, the cost of a barrel oil increased by 30% over the past 6 months, prompting Beras to ask “Is the oil industry back?” Dr. Weber joined Samantha Rose, an Energy Policy Analysis at the Brookings Institution and Mukul M. Sharma, Engineering Professor at the University of Texas Austin to discuss the increase in price and the implications for oil producers.
While oil companies have managed to produce more efficiently and increase productivity in the past, Dr. Weber argues that the uncertainty of the oil market makes it challenging to predict how oil companies will respond. With uncertainty about future demand for oil and break-even-prices for U.S. shale production, Dr. Weber suggests that oil companies “may do very different things,” like doubling down on drilling or move towards renewables.”
To listen to the segment, click here.
As the Director of SGGC GSPIA’s Shale Gas Governance Center (SGGC), Dr. Weber is a leader in the field of research, teaching, and outreach on governance issues associated with extracting natural gas from shale formations in Pennsylvania, the United States, and abroad. For more information on the work at SGGC, click here.