Sometimes, you are just wrong. Not inaccurate. Not mischaracterized. Just wrong.
Unfortunately for me, that is what I was in describing the fracking industry’s universal unwillingness to participate in prospective testing (before drilling/fracking and after) case studies in the Environmental Protection Agency’s research into the impacts of hydraulic fracturing on drinking water sources.
We have been watching the demise of Chesapeake Energy (CHK) unfold. In addition to the news of $1.1 billion in unreported loans, Reuters has now exposed a $200 million hedge fund which Aubrey McClendon ran from the headquarters of Chesapeake Energy. This hedge fund invested in the same commodities that Chesapeake produces. Further, Senator Nelson has now called for an investigation by the Department of Justice to look into possible fraud and price manipulation.
The issues of corporate governance, potential fraud, the use of off balance sheet financing and the complexity of financial engineering has been nothing short of breathtaking. But I think we need to step back and examine the full import and implications of shale gas economics because Chesapeake may simply be a microcosm of a more systemic anomaly which is much broader and more problematic.
A Chesapeake Energy drilling rig working in Oklahoma hit a shallow pocket of gas on Thursday causing a blowout which burned the rig to the ground. Jim Gipson, Director - Media Relations for Chesapeake, told the media one story but told a concerned Denton citizen a completely different story. Both stories can't be true.
This past Sunday, Aubrey McClendon, CEO of Chesapeake Energy, was interviewed on CBS 60 Minutes.
Although he defended natural gas extraction, he also acknowledged that hydraulic fracturing (aka fracking) a process that facilities the extraction of natural gas from over 90% of wells drilled in the United States injects the equivalent of Drano through the water table groundwater that provides drinking water for much of America.
Finally, a major energy industry CEO is admitting the truth that fracking chemicals are toxic, like Drano.
Durango, CO -- "Last week, Chesapeake Energy Corporation stated that it will not drill for natural gas within the New York City watershed, a small area within the Marcellus Shale natural gas reserve which underlies some of the Appalachian regions of New York, Pennsylvania, Ohio, Maryland and West Virginia. The watershed, which supplies untreated, clean water to nine million people, is under increasing pressure to drill.