Nothing that the President said was an exaggeration. In the 1970s, both the government and the oil and gas companies thought that US natural gas resources were sparse. DOE's precursor, ERDA, began a research program to characterize and develop technologies for producing natural gas from what was then considered "unconventional" reservoir rocks ... tight sandstones, coal seams, and shale. The producing companies were not particularly interested in doing such research, but were happy to adopt and use the resulting technologies and information that came out of the research done during 1979-1992 and beyond. You can argue whether or not there is ever any room for federal investments in technology that might (or might not)benefit the nation, or if that should be left entirely to the private sector, but what the President said is true.
Karlof VA11:47AM February 14, 2012
Your analysis is a bit limited and completely left out the "Eastern Gas Shales Project" from the late 70's.
frackerof PA2:44PM February 07, 2012
The following specific example might be helpful in this discussion.
Microseismic research was federally funded r&d that helped advance the hydraulic fracturing techniques now being used by US industry. Information is available at the following site…
“The National Energy Technology Laboratory (NETL) and other National Laboratories have partnered with industry to develop a breakthrough technology that is helping oil and gas producers connect their wells with the hydrocarbons stored in networks of fractures found in many of today’s most promising domestic oil and gas accumulations.”
“The first systematic research into microseismic fracture mapping, done by Los Alamos National Lab (LANL) in Los Alamos, New Mexico, in the 1970s, was related to fractures in geothermal wells. Somewhat later, NETL collaborated with Sandia National Laboratories to build and deploy receivers for testing similar mapping technology. In the 1980s, this system was used at the NETL Multiwell Site experiment in Colorado, where major fracture experiments were successfully monitored. “
“…. the recent rapid expansion of natural gas production from the Barnett Shale play in central Texas has been made possible by large, multiple-stage hydraulic fracturing treatments (i.e., more than one created fracture per well bore) performed in horizontally drilled wells. Microseismic monitoring of these stimulations has played an important role in optimizing well performance and ensuring that each well produces at its full potential. Operators are now using this technology to overcome the complexities of similar shale reservoirs across North America, including the Bakken, Caney, Fayetteville, Marcellus, Muskwa and Woodford shale plays.”
C. W. Myersof NM5:05PM February 03, 2012
Is this article suppose to shock us every time Obummer opens his mouth a lie comes out. He is a habitual liar
jerry bouchetof KY3:46PM January 31, 2012
One company has the ability to cleanup fracking sites-and they do it ON SITE w/no need to truck the water off site. Symbol: ESPH.OB, www.ecospheretech.com With support by Drew Bledsoe/Troy Aikman, Jean Michel Cousteau and advice from Dr Kent Moors this company's innovations can solve part of this whole enviro-concern about fracking. Ecosphere Technologies-go to the site and learn-you will thank me for the turn-on some day! LOXOMO
I think the role of the government in oil and gas technologies generally and hydraulic fracturing related technologies specifically is more involved and complex than your article acknowledges.
Despite your claims to the contrary, the government played an important role at many points in the last 30 years, including in the case of Mitchell Energy. For instance, according to one recent article:
Mitchell Energy's first horizontal well was subsidized by the federal government, according to former geologist and Vice President for Mitchell. "They did a hell of a lot of work," said Steward, "and I can't give them enough credit for that. DOE started it, and other people took the ball and ran with it. You cannot diminish DOE's involvement."
Rather than an isolated example, this vignette is merely indicative of the larger role played by the government. This is not to say that private organizations have not played an equally vital role. My point is not to suggest that government is more important than private industry, but rather to point out that any thoughtful consideration of the record will show that both private organizations and government agencies were significantly involved in the process over a large period of time.
Further, on top of its direct involvement in technology research (such as through the DOE), a true accounting of the government's role would also need to look at the vital role of tax incentives (without which operators such as Mitchell would have been unlikely to have drilled wells in the first place), the role of favorable regulations such as the EPAct of 2005 (without which operators would not be exempt from the liabilities of hydraulic fracturing), and the important role played by the agencies such as the EIA and USGS in quantifying available reserves in the first place.
In short, it is difficult to conceive of the oil & gas industry as we now know it without significant support and involvement by the US government.
Joel Gehman
Pennsylvania State University
Smeal College of Business
University Park, PA 16802
Joel Gehmanof PA1:21PM January 27, 2012
The Fracking debate is much too important to be turned into partisan politics.
This article tells you everything about the subject of federal help on tracking development
Reader Comments
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Karl of VA 11:47AM February 14, 2012
fracker of PA 2:44PM February 07, 2012
C. W. Myers of NM 5:05PM February 03, 2012
jerry bouchet of KY 3:46PM January 31, 2012
loxomo of NJ 1:37PM January 30, 2012
Ted Boettner of WV 4:50PM January 27, 2012
Joel Gehman of PA 1:21PM January 27, 2012
Nick Grealy 1:12PM January 27, 2012