Shale gas is turning into a bonanza for West Virginia. It became viable economically because George Mitchell spent years developing ways to economically drill horizontal wells and frac them in order to release gas from tight shale formations. He is a pioneer that deserves the plaudits he is receiving.

Mike Shellenberger of the Breakthrough Institute has something to add to this history. As he notes in an article that was carried in the Washington Post, Mitchell benefited from substantial investment by the US government in the development of  horizontal drilling and fracturing shale, some of which research was done in Morgantown. The research was done during times that low prices for oil and gas would have discouraged private investment.

Giving the federal government credit where it is due takes nothing away from Mitchell, who was determined and tenacious. But the lesson of the shale gas revolution is that we should not be so quick to judge government investments in energy technology. Between 1978 and 2007, the Energy Department spent $24 billion on fossil energy research. Billions more were spent through the Gas Research Institute and non-conventional gas tax credits. Those investments were widely panned as a failure during the ’80s and early ’90s, when gas was plentiful and cheap.

Mike has a good point.  This is exactly the type of investment in research that the federal government should be making, whether for fossil fuels or alternative energy sources.  What it shouldn't do is pick winners in the marketplace, through tax credits, loan guarantees or other support for individual companies.  Solyndra is a good example of how that can turn out.