NYSE:CHK

Thu, 2012-09-20 07:00Brendan DeMelle
Brendan DeMelle's picture

Deepening Doubts About Fracked Shale Gas Wells' Long Term Prospects

This month, the Pennsylvania Department of Environmental Protection released its bi-annual report on how much natural gas has been produced in the Marcellus Shale, a rock formation which stretches underneath much of Appalachia. Investors were shocked because the production numbers seemed far lower than expected.  Watched closely by market and energy analysts, the report sparked a heated debate about the oil and gas industry's excited rhetoric about fracked shale gas as the cure-all to many of America's energy and jobs needs.

But the story quickly got complicated. The report was released despite lacking data from the state’s second largest driller, Chesapeake Energy, and state regulators never flagged the omission. The amount of gas flowing out of Pennsylvania had actually climbed dramatically.

It was a major flaw, and suddenly the searing spotlight of the media honed in on questions about whether regulators were keeping accurate track of how much gas the wells in their state really produce. How could they overlook such a massive error? Can the public be sure that the updated tally gives an accurate picture of how these wells are performing?

If regulators make mistakes in tracking energy production in their state, how reliable is the companion to that report, which tracks the toxic waste produced by these same companies?

Those are all valid questions that need honest answers. But the most important questions raised in the controversy were largely overlooked.

Wed, 2012-07-11 03:00Brendan DeMelle
Brendan DeMelle's picture

Science Trumped by Politics In Cuomo's NY Fracking Plans?

New York Governor Andrew Cuomo has said repeatedly that, in making the decision on whether to allow horizontal hydrofracking in New York State, he wants to rely on “science, and not emotion.” He is relying on the NY Department of Environmental Conservation (DEC) to give him that science - but an array of documents suggest the Governor is being badly served.

Documents recently uncovered by Environmental Working Group shine a unique spotlight on privileged access granted to gas industry lobbyists by DEC officials with regards to fracking.

Some of the most important conversations revealed in those pages have little to do with debate over the science of fracking’s environmental footprint – and everything to do with the politics of ending New York’s temporary moratorium and allowing shale gas fracking to move forward in the state.

Governor Andrew Cuomo has gone to great lengths to present the course his state will take with regards to fracking as the opposite of Pennsylvania’s drill-baby-drill approach, which has left regulators scrambling to keep up and allowed a growing list of problems to emerge. By contrast, New York will make an incremental, guarded entry into fracking, Cuomo alleges. And his regulators will take an approach that rises above the fray of conflicts between industry and environmentalists.

We have a process. Let’s get the facts,” Governor Cuomo said last year, with regards to ending the state’s temporary moratorium on fracking. “Let the science and the facts make the determination, not emotion and not politics.”

But it’s increasingly clear that the process has actually been based on anything but science. Politics, legal considerations and economic concerns have instead predominated. Most tellingly, documents recently uncovered by Environmental Working Group show that industry representatives allowed access to drafts of the state’s permit plans, and used that information to lobby hard against testing for radioactivity in wastewater, for example.

But the documents also show a regular pattern of behind-the-scenes communication between the industry and regulators, at the same time as environmental advocates and others were struggling to be heard through public comments and similar official channels.

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