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Continues next page >> By Jared Anderson
AOL Energy
Are the energy industry and the business of politics incompatible?
It could be the simplest explanation for why the U.S. does not have a comprehensive, efficient or constructive energy policy set. On the most basic level, two-year and four-year election cycles are problematic for an industry that needs to make decisions and investments over 20- to-30 year time horizons. While this may be the case looking forward, the disconnect between election cycles and energy investment time horizons is even more difficult to reconcile when looking backward, as some industry observers have recently pointed out. The current domestic oil and gas production renaissance that is garnering so much attention today has roots extending back decades. Substantial increases in oil and natural gas output from tight geologic formations began around the mid-2000s when companies started ramping up horizontal drilling and hydraulic fracturing operations in a big way, though the groundwork for these production increases was literally being laid for many years prior. Look at this Energy Information Administration animation depicting Barnett Shale drilling growth from 1997 to 2010 as one example. Continues on next page >>
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