The earliest works that recorded a decrease in pressure drop during turbulent flow were undertaken in the thirties and concerned the transportation of paper pulp.  This was, however, not explicitly referred to as a drag reduction phenomenon.  Toms was the first to recognize the tremendous reduction in wall shear stress caused by the addition of small amount of linear macromolecules to a turbulent flowing fluid.  An extensive bibliography of the first 25 years of drag reduction by polymer additives literature identified over 270 references.
Drag reducers were introduced into the market in the early 1970s by Conoco Inc. (now known as LiquidPower Specialty Products Inc. (LSPI), [http://www.berkshirehathaway.com/subs/sublinks.html a Berkshire Hathaway Company]). Its use has allowed pipeline systems to greatly increase in traditional capacity and extended the life of existing systems. The higher flow rates possible on long pipelines have also increased the potential for surge on older systems not previously designed for high velocities.
Both proprietary (such as Conoco T-83) and non-proprietary (such as poly-isobutylene) drag reduction additives have been evaluated by the U.S. Army Mobility Equipment Research and Development Center for enhancement of military petroleum pipeline systems.