Although the technique known as hydraulic fracturing was first tried in the 1950s, it did not become popular (read, “economic”) until a small company called Mitchell Energy & Development Corp. applied the technique to tight gas deposits around the Dallas-Fort Worth metropolitan area in the late 1990s. That’s when Mitchell Energy began fracking (then spelled, “fracing”) wells in the Barnett Shale and producing natural gas that was economically viable.
The founder and CEO of the company, George Mitchell, died last week at the age of 94 of natural causes. Mitchell sold his company to Devon Energy Corp. (NYSE: DVN) for $3.5 billion in 2002. The rest, as they say, is history.
More precisely, the still-controversial fracking technique, which is now applied to oil deposits as well, has changed the face of the energy industry. The United States is producing more crude oil now than it has in more than 20 years. There are even some projections that the United States may overtake Saudi Arabia or Russia as the world’s largest producer. “Saudi America” is the outcome of Mitchell’s first experiments with fracking, and one does not need to be an oilman to be impressed with his impact on world energy.
Mitchell also signed the Giving Pledge sponsored by Warren Buffett and Bill and Melinda Gates, indicating his intention to leave the bulk of his personal fortune of an estimated $2 billion to charity.
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