The The good kind:
A new technique being used to drill through a type of rock known as shale has led to a surge in domestic natural gas production over the last three years and enabled the United States to overtake Russia recently as the world’s No. 1 producer of natural gas.
. . .
Thanks to a breakthrough in drilling technology, involving the use of three-dimensional seismic imaging and hydraulic fracturing of shale rock, huge amounts of natural gas are being produced in New York, Pennsylvania, Texas, Louisiana and other states. Instead of declining, domestic natural gas production is booming to record-high levels (see chart).
If estimates hold up, energy experts say the shale gas that underlies large parts of the United States will be able meet our country’s needs for the next 100 years. The Department of Energy expects shale gas to account for 50% of natural gas production by 2020 if not sooner.
What’s more, the same drilling techniques for shale gas are now being used in several European countries, including France and Poland, to extract their own supplies. Both China and India have huge shale-gas resources. Geologists say shale gas is so plentiful in some parts of the world that it could meet global needs for several centuries.
And, the bad kind (of which Joe Biden appears to be the No. 1 producer):
But these exciting energy developments may not last if natural gas companies are burdened by excessive regulation and heavy taxes. Environmental groups are lobbying Congress to shift regulation of hydraulic fracturing from state governments to the Environmental Protection Agency, claiming that the process poses a risk to groundwater supplies.
But the fact is, hydraulic fracturing is done about 1,000 feet below underground aquifers and separated from the water supply by thick rock.
The White House also wants to add $37 billion in taxes on U.S. oil and natural gas companies, rehashing a proposal to Congress that failed the first time around. History shows that once drilling costs jump due to higher taxes, investment starts to dry up.
(Via Carpe Diem)