The Oil & Gas industry are absolutely shamelss.
NY Post Pushes Fracking Study Without Noting Industry Funding
A New York Post editorialadvocated for New Yorkers to "frack, baby, frack!" citing a "new study out of Penn State" claiming ample economic rewards of natural gas drilling in Pennsylvania. However, the editorial failed to note that the study was sponsored by a lobbying group representinggas companies.
The study itself acknowledgesthat "the Marcellus Shale Coalition provided the funding for this study" and it was "prepared as an account of work sponsored by the Marcellus Shale Coalition." The study was reportedlycommissioned by MSC for $100,000.
Two of the study's authors, Timothy J. Considine and Robert Watson, previously wrote two reports also sponsored by the Marcellus Shale Coalition. The dean of Penn State's College of Earth and Mineral Sciences, William E. Easterling, criticized the initial version of their 2009 report for making the "clear error" of failing to identify the sponsor, which is against Penn State policy. Easterling further stated that it would be "simply incorrect usage" to refer to the earlier report as a "Penn State report" rather than a "Marcellus Shale Committee report." Easterling also criticized the study's authors because they "may well have crossed the line between policy analysis and policy advocacy."
The current report has found results more favorable to the Marcellus Shale Coalition than state statistics suggest. As reported by Pennsylvania newspaper The Citizens Voice, Pennsylvania Department of Labor and Industry statistics showthat there are about 19,000 people employed in the "Marcellus Shale core industries," while the report found that Marcellus shale "directly create[d]" more than 67,000 jobs and "supported" nearly 140,000. Furthermore, a Pennsylvania Department of Revenue reportfound that companies engaged in natural gas drilling activities and related businesses in Pennsylvania have paid more than $1.1 billion in state taxes since 2006, while the study found that the Marcellus gas activity generated that much state and local tax revenue in 2010 alone.
The New York Post is not the first News Corp. outlet to spin a fracking study.
Sunday, July 31, 2011
SEC Regulators Seek Records on Claims for Gas Wells
The SEC subpoenas the oil and gas industry production reports
WASHINGTON — The Securities and Exchange Commission sent subpoenas this week to energy companies asking them for documents about how they calculate and publicly disclose the performance of their shale gas wells, according to oil and gas industry lawyers.
WASHINGTON — The Securities and Exchange Commission sent subpoenas this week to energy companies asking them for documents about how they calculate and publicly disclose the performance of their shale gas wells, according to oil and gas industry lawyers.
The subpoenas reflect the regulators’ interest in determining whether companies are overstating how their gas wells perform and how much gas these companies can profitably extract over the long term.
It is not clear how many subpoenas were sent. John Nester, a spokesman for the commission, declined to comment.
“The use of subpoenas makes clear that the S.E.C. is taking a formal, not a casual, look at the matter,” said a market research report on Thursday by Robert W. Baird & Co., an international financial services firm. The report also noted that subpoenas do not mean that the commission intends to take action against any particular company, and that estimating reserves is not an exact science.
In a separate note, Gerard G. Pecht, a lawyer with Fulbright & Jaworski, told clients that the subpoenas were focused on the actual performance of shale gas wells compared with how companies were projecting their performance, according to an article on FuelFix.com, an energy news Web site. Mr. Pecht did not respond to messages seeking comment.
The subpoenas also request documents related to discrepancies between what companies are telling investors about the costs of shale gas versus what they are reporting in federal filings.
Large natural gas companies, including Chesapeake Energy, EOG Resources and the Petrohawk Energy Corporation, did not return calls seeking comment. Alan T. Jeffers, a spokesman for Exxon Mobil, the largest natural gas producer in the country, said the company had not received a subpoena.
One oil and gas industry consultant said that he was called to a meeting in mid-June with investigators from the Fort Worth office of the S.E.C. The investigators, he said, wanted to discuss a range of shale gas companies, and discrepancies between data reported to federal officials and what these companies had told investors about profit and well performance. The consultant asked not to be identified, to avoid alienating the energy companies that are his clients.
According to several oil and gas industry lawyers, the subpoenas are in response to articles published in June in The New York Times, which showed that a range of industry and federal officials had questioned whether shale gas companies might be playing down costs or inflating their predictions about well performance.
Some federal agencies have also begun discussing concerns about the long-term productivity of shale gas wells.
For example, the 2011 summer newsletter of the National Energy Technology Laboratory, a research arm of the Department of Energy, says that technology needs to improve in the Barnett shale in Texas, and in other shale gas areas, for these shale gas wells to be more economically viable.
Shale gas wells often decline sharply after their first year, but many in the industry had remained optimistic about the wells’ ability to produce at a slow but steady rate for decades. Others have doubted these assumptions, which may not be holding up.
“A crucial challenge for the industry today,” the newsletter said, is that only a “fraction” — a third or less — of wells show “sustained long-term production,” which makes it difficult for companies to make money on this drilling.
The newsletter added that many of the wells produce poorly and others drop in production sharply after an early period of heavy production.
It is not clear how many subpoenas were sent. John Nester, a spokesman for the commission, declined to comment.
“The use of subpoenas makes clear that the S.E.C. is taking a formal, not a casual, look at the matter,” said a market research report on Thursday by Robert W. Baird & Co., an international financial services firm. The report also noted that subpoenas do not mean that the commission intends to take action against any particular company, and that estimating reserves is not an exact science.
In a separate note, Gerard G. Pecht, a lawyer with Fulbright & Jaworski, told clients that the subpoenas were focused on the actual performance of shale gas wells compared with how companies were projecting their performance, according to an article on FuelFix.com, an energy news Web site. Mr. Pecht did not respond to messages seeking comment.
The subpoenas also request documents related to discrepancies between what companies are telling investors about the costs of shale gas versus what they are reporting in federal filings.
Large natural gas companies, including Chesapeake Energy, EOG Resources and the Petrohawk Energy Corporation, did not return calls seeking comment. Alan T. Jeffers, a spokesman for Exxon Mobil, the largest natural gas producer in the country, said the company had not received a subpoena.
One oil and gas industry consultant said that he was called to a meeting in mid-June with investigators from the Fort Worth office of the S.E.C. The investigators, he said, wanted to discuss a range of shale gas companies, and discrepancies between data reported to federal officials and what these companies had told investors about profit and well performance. The consultant asked not to be identified, to avoid alienating the energy companies that are his clients.
According to several oil and gas industry lawyers, the subpoenas are in response to articles published in June in The New York Times, which showed that a range of industry and federal officials had questioned whether shale gas companies might be playing down costs or inflating their predictions about well performance.
Some federal agencies have also begun discussing concerns about the long-term productivity of shale gas wells.
For example, the 2011 summer newsletter of the National Energy Technology Laboratory, a research arm of the Department of Energy, says that technology needs to improve in the Barnett shale in Texas, and in other shale gas areas, for these shale gas wells to be more economically viable.
Shale gas wells often decline sharply after their first year, but many in the industry had remained optimistic about the wells’ ability to produce at a slow but steady rate for decades. Others have doubted these assumptions, which may not be holding up.
“A crucial challenge for the industry today,” the newsletter said, is that only a “fraction” — a third or less — of wells show “sustained long-term production,” which makes it difficult for companies to make money on this drilling.
The newsletter added that many of the wells produce poorly and others drop in production sharply after an early period of heavy production.
Wednesday, July 20, 2011
Energy In Depth on the 'unholy alliance' of concerned and radical groups like the EPA
The attacks, the name calling, and demonizing of anyone who disagress with wholesale gas drilling in PA by Energy In Depth sounds more like sour grapes. Check out the link below, and please feel free to leave a comment on the EID page. Tom and Nicole really do like hearing from you.
http://eidmarcellus.org/2011/07/17/unholy-alliance-puts-the-mark-on-marc-1-pipeline/#comment-1027
http://eidmarcellus.org/2011/07/17/unholy-alliance-puts-the-mark-on-marc-1-pipeline/#comment-1027
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