Ian Urbina has a long piece throwing some cold water on the natural gas hype at the NYT:
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.
“Money is pouring in” from investors even though shale gas is “inherently unprofitable,” an analyst from PNC Wealth Management, an investment company, wrote to a contractor in a February e-mail. “Reminds you of dot-coms.”
"…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."
What we have here is a failure to regulate. Sounds more like pre-2008 financial industry than dot coms.
Is Shale Gas a Bubble?
What does GINGER LEE think?
What would ANTHONY WEINER do?
Yep, anon 12pm is right, we need more regulation. After all, all investments should have a 100% chance of success. And if something goes wrong, then it's obviously a legal claim for fraud.
Like the 44,000 jobs related to Marcellus Shale that were created in PA in 2009 alone. And the $489 million in tax revenue that was generated in 2009 alone. All fraud.
Except for the guys who rigged the global warming stats, they were innocent.
Anon 10:34,
I see you can respect my wishes.
You kept it clean, laid off my personal fortune and kept quiet about my own substantial Carbon footprint.
I thank you, Sir.
A. GORE
Actually, they only created 9,300 jobs between the last quarter of 2009 and the 1st quarter of 2011.
You show'em, Jonny.
Dazzle 'em with some 'friendly' links.
Go get 'em Tiger!
A. WEINER