The greenhouse gas effects of increased US oil and gas production

Increased oil and natural gas production in the United States has decreased domestic natural gas prices and global oil prices. The resulting greenhouse gas (GHG) impacts have received substantial attention, with most focus on natural gas and relatively little on oil. In this paper, I provide an estimate of how increased production affects these emissions through changes in the US energy mix, methane emissions, and—crucially—global oil prices. Under a high oil and gas production scenario, US GHG emissions in 2030 are 100–600 million metric tons of carbon dioxide equivalent (2–10%) higher than under a low production scenario. Under the high production scenario, lower global oil prices and increased consumption raise non-US carbon dioxide emissions by 450–900 million metric tons relative to a low production scenario in 2030. These estimates assume that OPEC does not strategically reduce production to offset U.S. gains.