How Shale Boom-Era Municipal Debt Could Undermine Community Resilience During the Energy Transition

Local governments in oil and gas-producing regions took on significant municipal debt during the U.S. shale boom to build schools, water systems, and other infrastructure to accommodate rapid population growth. This brief uses Mergent municipal bond issuance data and interviews with local government officials to describe debt accumulation in shale boom communities (N=2,519 counties; 2004–2015) and its implications for the energy transition. The author finds that shale boom communities accumulated approximately $782 more in municipal debt per capita than comparable communities, a 26% increase totaling $1.9 billion across 58 shale boom counties. If production declines and newer residents leave, the long-term residents who remain could face the full burden of that debt.