IMK Working Paper No. 217
What Drives Drilling Up and Prices Down?
Between June 2008 and April 2012 natural gas prices in the U.S. dropped by 85%. The reason for this was not only the expansion of fracking, but above all the weak demand following the financial crisis of 2008. Therefore, even with a comparatively rapid expansion of shale gas production, no one should expect a price decline similar to that seen in the United States after 2008.