Shale Oil: A Deep Dive Into Implications for the Global Economy and Commodity Investors

Viewpoints
March 2013

Shale Oil: A Deep Dive Into Implications for the Global Economy and Commodity Investors
Greg E. Sharenow, Mihir P. Worah

• The shale oil revolution in the U.S. is a classic example of high prices and improving technology spurring methods of commodity production that may have been historically unimaginable.

• Although growth in U.S. shale production has not yet been sufficient to meaningfully weaken oil prices, it has had a notable impact on long-term price expectations, on both the upside and downside.

• After acting as a significant brake on economic activity during the run-up in prices during the last decade, greater energy availability will at the very least be a positive for global growth.

http://www.pimco.com/EN/Insights/Pages/Shale-Oil-A-Deep-Dive-Into-Implications-for-the-Global-Economy-and-Commodity-Investors.aspx