In 1975, the Department of Energy began funding research into fracking and horizontal drilling, where wells go down and then sideways for thousands of feet. But it took more than 20 years to perfect the process.Yes, Mitt, WE built that. Business folks come up with some great ideas, but government research pushes along a lot of advancements which would not be undertaken by folks who intend to make big profits. Governmental support, whether in research dollars or in supply contracts when products aren't yet commercially viable have funded development for many of the things we take for granted. Things like the internet. And Tang.
Alex Crawley, a former Department of Energy employee, recalled that some early tests were spectacular — in a bad way.
A test of fracking explosives in Morgantown, W.Va., "blew the pipe out of the well about 600 feet high" in the 1970s, Crawley said. Luckily, no one was killed. He added that a 1975 test well in Wyoming "produced a lot of water."
Steward recalled that Mitchell Energy didn't even cover the cost of fracking on shale tests until the 36th well was drilled.
"There's not a lot of companies that would stay with something this long. Most companies would have given up," he said, crediting founder George Mitchell as a visionary who also got support from the government at key points.
"The government has to be involved, to some degree, with new technologies," Steward said.
The first federal energy subsidies began in 1916, and until the 1970s they "focused almost exclusively on increasing the production of domestic oil and natural gas," according to the Congressional Budget Office.
More recently, the natural gas and petroleum industries altogether accounted for about $2.8 billion in federal energy subsidies in the 2010 fiscal year and about $14.7 billion went to renewable energies, the Department of Energy found. The figures include both direct expenditures and tax credits.
Congress passed a huge tax break in 1980 specifically to encourage unconventional natural gas drilling, noted Alex Trembath, a researcher at the Breakthrough Institute, a California nonprofit that supports new ways of thinking about energy and the environment. Trembath said that the Department of Energy invested about $137 million in gas research over three decades, and that the federal tax credit for drillers amounted to $10 billion between 1980 and 2002.
Tuesday, September 25, 2012
Government Funded Research Helped Develop Fracking
AP, via nc links:
Subscribe to:
Post Comments (Atom)
Speaking of great government research you should check out this blog.
ReplyDeletehttp://theeconomiccollapseblog.com/archives/chimps-throwing-poop-and-29-other-mind-blowing-ways-that-the-government-is-wasting-your-money
Trying to decide which investment of my tax dollars is the next Tang. I'm putting quail condoms on my short list.
I think my take is that 99% of government research is pure BS and useless. As for the successes even a blind squirrel finds a nut once and awhile.
I think your guess of 99% of government research is wasted money is slightly less accurate than my estimate that 99% of Romney voters are mentally defective
ReplyDeleteI have to agree with you on the Romney voters. They are mentally defective. What person in there right mind would continue to work their tail off at a job and pay taxes when you can be an Obama supporter, stop working and get on government assistance.
DeleteSeriously though isn't it a slippery slope? As you create a culture of dependence when does the majority of people just give up and get on the governement teet. What is the incentive to be productive?
Plus, a study of monkeys throwing poop is a much better investment than a war in Iraq or Afghanistan.
ReplyDeleteIf it is so great, why don't you go on public assistance? I am guessing that most people work because they are too proud to ask other people for help. One reason why people don't suck from the government teat is that because it actually isn't that good of a deal.
ReplyDelete