Obama Champions Fracking?

Interesting piece on Technorati with a different take on the impact of shale drilling and the impact on wind energy.

 

President Obama dedicated a substantial portion of his State of the Union address to the topic of energy, particularly renewable energy.  Interestingly, he went to great lengths to point out the role of government investment in the technologies that lead to the present day natural gas fracking boom. He leveraged this point to push for continued government subsidies for renewable energy.

Ironically, the very success of these new drilling techniques has lead to the dramatic decline in natural gas prices and has made the economics of renewable energy more challenging. Many states generate a substantial portion of their electricity from the burning of natural gas.  Electricity rates in Texas have been cut in half since 2008 much to the delight of Texas consumers. But the rock bottom price of natural gas will make it very difficult for wind to compete on cost for many years to come.

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