Fracking provides a shorter timeline for production payoff that may lower the risk for gas and oil investors who are weighing their options in light of the recently passed Inflation Reduction Act.
“That speaks to why, along with geopolitical reasons, why we’re seeing drilling increasing in the short term,” said Catie Hausman, an associate professor of environmental and energy economics at the University of Michigan. “But I think it’s also clear that investors are worried about the long term.”
“It’s just not realistic to think of oil and gas going away within the next five years,” she said. “And so, for now, it looks like fracked wells are here to stay for the short term.”