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Insiders Sound an Alarm Amid a Natural Gas Rush $NG_F

Jennifer Pitts/The Journal Record, via Associated Press, left; Mark Peristein for The New York Times

“It’s time to get bullish on natural gas,” said Aubrey K. McClendon, left, chief executive of Chesapeake Energy. “This could have profound consequences for our local economy,” said Deborah Rogers, a committee member at the Federal Reserve Bank of Dallas.


Natural gas companies have been placing enormous bets on the wells they are drilling, saying they will deliver big profits and provide a vast new source of energy for the United States.

But the gas may not be as easy and cheap to extract from shale formations deep underground as the companies are saying, according to hundreds of industry e-mails and internal documents and an analysis of data from thousands of wells.

In the e-mails, energy executives, industry lawyers, state geologists and market analysts voice skepticism about lofty forecasts and question whether companies are intentionally, and even illegally, overstating the productivity of their wells and the size of their reserves. Many of these e-mails also suggest a view that is in stark contrast to more bullish public comments made by the industry, in much the same way that insiders have raised doubts about previous financial bubbles.


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One comment

  1. Philanthropist

    Where was the SEC 2007–BUSH ADMINISTRATION, no need to ask that but today many that remain in the SEC are from the Bush Administration, one of the many downfalls of the Obama Administration when they did not clean house of those responsible for many of the dire situations from housing collapse, wall street corruption and energy manipulation. Even now states must to return to coal and more gas which has shown to cause extreme environmental damage and rising of sea levels due to global warming. Just ask Norfolk, Virginia and soon to be Miami with the new dredging of the existing port to bring in more coal. Energy companies are knee deep in protecting their turfs,and the coal and gas industry has found their stronghold in financing many congressional and state legislature members and hype and lies have always produced PROFIT. Hopefully the truth will find its way out.

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