| Summary: | 碩士 === 國立臺灣大學 === 經濟學研究所 === 107 === It was unworkable for oil companies to explore and extract oil shale due to immature technology in the past. However, the advanced technologies of horizontal drilling and hydraulic fracturing have been tested, while the United States becomes the leader around the global in oil share extraction owing to better drilling technology and abundant resources. The country’s oil shale production grows meaningfully with rapid rise in market share, which gives a threat to OPEC in crude oil markets. In the essay, we try to analyze the impacts of higher shale oil production in the U.S. could make for the global crude oil prices and OPEC’s oil policy. First of all, we create inversed demand function of WTI crude and then followed by that of Brent oil to find out the results on crude oil prices trend. It finally approved that the WTI crude prices will drop when U.S. raises crude oil production. Nevertheless, the impact of growing crude oil production in the U.S. on Brent crude prices is insignificant. We believe the reasons might be the U.S. enacted legislation authorizing export of the country’s crude oil late on December, 2015
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