The impact of shale oil and gas production on the Texas housing market -

Abstract

Recent technology advancements in horizontal drilling and hydraulic fracking has caused a gas and oil boom in parts of Texas and elsewhere in the United States. While such a boom has led some to believe in possible energy independence in North America by 2020, the overall result of drilling has many factors. Previous research suggests there can be positive and negative effects on the economy and environment due to shale production. Housing prices are also affected in positive and negative ways near areas where drilling takes place. This paper proposes to present the results of studying the effects of shale oil and gas production on the Texas housing market through the observation of price increases or decreases in areas proximate to shale production. I propose to discuss my hypothesis that homes within 1mi of drilling experience slight decreases in price, especially those relying on private water supply. However, homes 1mi+ experience price appreciation due to boom town effects and increases in jobs and income.