ABSTRACT
The experience with shale gas development—or the absence of its development—illustrates the contrast between the dynamism of markets and the slowness of politics. Canada has a long history of fracking. This technique has been used to mine shale oil in Alberta since the 1950s. One of the most important features of shale development in Alberta is that drillers can make decisions about fracking based on market prices. Canada affirms the role of institutions in explaining shale gas development. One would expect the proximity to the massive shale plays and companies in Texas would be an advantage, though unfortunately borders and politics can get in the way of doing business. The relationship between shale gas and Russian influence has also been a subject of American foreign policy. China has more shale gas than any other country in the world—about as much shale as the USA and Canada combined.
