“Please God, give us another oil boom. We promise not to piss it away this time.” – Popular bumper sticker in oil producing regions after the 1980s oil markets crashed In the 1970s, there was much to be celebrated for those involved in the US oil and gas industry. The OPEC oil embargo coupled with events like the Iranian Revolution and the Iran-Iraq War led to a shortage of oil on the world market and precipitated a boom for US producers. This boom, however, was short lived. By 1981, world production had stabilized and oil prices had plummeted, bankrupting a significant number of producers and inspiring the use of “Please God” bumper sticker in places like Texas, Oklahoma, and Alberta. Throughout much of the 1980s and 1990s, the bumper sticker didn’t seem to help, and the oil and gas industry limped along. Against financial engineering and IT novelties that sent the stock-prices of energy firms like Enron soaring (Zellner 2001)—and, in California’s deregulated energy market, allowed Enron to keep itself afloat at the expense of “Grandma Millie” (C-SPAN interview with B. McLean; Oppel 2002; Roberts 2004)—the capital-intensive technologies of the oil and gas industry seemed dull and unable to capture the general public’s imagination. By 2010, however, this story had almost entirely changed. Where financial and IT services had once seemed to be at the forefront of innovation, two stock-market crashes coupled with the technological advances in oil and gas production that enabled the “Shale Boom” seemed to suggest the reverse. They seemed to suggest that creative accounting and financial engineering may make a company appear healthy— even forward thinking—but they cannot replace tangible contributions to technology and production. (read more...)