May 28, 2013 in Business

GE throws its weight behind fracking

U.S. corporate giant invests billions during boom
Kevin Begos Associated Press
 

PITTSBURGH – One of America’s corporate giants is investing billions of dollars in the new boom of oil and gas drilling, or fracking. General Electric Co. is opening a new laboratory in Oklahoma, buying up related companies, and placing a big bet that cutting-edge science will improve profits for clients and reduce the environmental and health effects of the boom.

“We like the oil and gas base because we see the need for resources for a long time to come,” said Mark Little, a senior vice president. He said GE did “almost nothing” in oil and gas just more than a decade ago but has invested more than $15 billion in the past few years.

GE doesn’t drill wells or produce oil or gas, but Little said the complexity of the fracking boom plays into the company strengths. Wells are being drilled horizontally at great depths in a variety of formations all around the country, and that means each location may require different techniques.

There are also big differences in how surrounding communities view the boom. There’s been little controversy in traditional oil and gas states such as Oklahoma, but nearby landowners in Pennsylvania, Colorado and other states have complained of environmental and health effects.

“My own view is there things can be managed,” Little said of concerns about drilling, adding they need to be managed carefully. He drew a parallel to GE’s work with the aircraft industry: Many decades ago, flying was considered a risky business, but the industry evolved so that even as the speed, distance and number of flights increased, overall safety improved greatly.

Little also pointed out that GE has significant experience in wind, solar and nuclear power. “I think the world needs all of these kinds of systems,” Little said.

One environmentalist welcomed the news.

“It’s exciting to see. I think it is a positive response to legitimate public concerns about the environmental impacts” of the fracking boom, said Michael Shellenberger, one of the founders of Oakland’s Breakthrough Institute. He added that other companies are working to reduce and clean up wastewater, use more benign fracking methods and reduce air pollution related to drilling.

© Copyright 2013 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.


There is one comment on this story. Click here to view comment >>

Get stories like this in a free daily email