Chesapeake Energy CEO's responds to "misleading" NY Times article

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#1 Mon, Jun 27, 2011 - 12:34am
RuNuts
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Chesapeake Energy CEO's responds to "misleading" NY Times article

Aubrey McClendon's response to "misleading" New York Times article

by Chesapeake Energy Corporation on Sunday, June 26, 2011 at 8:27pm

Administrator's Note: This email was sent to all Chesapeake employees from CEO Aubrey McClendon, in response to a Sunday New York Times piece by Ian Urbina entitled "Insiders Sound an Alarm Amid a Natural Gas Rush."

FW: CHK's response to 6.26.11 NYT article on shale gas

From: Aubrey McClendon

Sent: Sunday, June 26, 2011 8:37 PM

To: All Employees

Dear CHK Employees:  By now many of you may have read or heard about a story in today’s New York Times (NYT) that questioned the productive capacity and economic quality of U.S. natural gas shale reserves, as well as energy reserve accounting practices used by E&P companies, including Chesapeake. The story is misleading, at best, and is the latest in a series of articles produced by this publication that obviously have an anti-industry bias. We know for a fact that today’s NYT story is the handiwork of the same group of environmental activists who have been the driving force behind the NYT’s ongoing series of negative articles about the use of fracking and its importance to the US natural gas supply growth revolution – which is changing the future of our nation for the better in multiple areas. It is not clear to me exactly what these environmental activists are seeking to offer as their alternative energy plan, but most that I have talked to continue to naively presume that our great country need only rely on wind and solar energy to meet our current and future energy needs. They always seem to forget that wind and solar produce less than 2% of America electricity today and are completely non-economic without ongoing government and ratepayer subsidies.

During the past seven years, Chesapeake has helped create an extremely disruptive and valuable technology in the form of shale gas, and now shale oil is on the way, and hopefully it too will be as disruptive, and will lead to lower oil prices, a stronger economy and fewer foreign military entanglements. Since the shale gas revolution and resulting confirmation of enormous domestic gas reserves, there has been a relatively small group of analysts and geologists who have doubted the future of shale gas. Their doubts have become very convenient to the environmental activists I mentioned earlier. This particular NYT reporter has apparently sought out a few of the doubters to fashion together a negative view of the U.S. natural gas industry. We also believe certain media outlets, especially the once venerable NYT, are being manipulated by those whose environmental or economic interests are being threatened by abundant natural gas supplies. We have seen for example today an email from a leader of a group called the Environmental Working Group who claimed today’s articles as this NYT reporter’s "second great story" (the first one declaring that produced water disposal from shale gas wells was unsafe) and that “we've been working with him for over 8 months. Much more to come. . .”

But I wanted you to know that this reporter’s claim of impending scarcity of natural gas supply contradicts the facts and the scientific extrapolation of those facts by the most sophisticated reservoir engineers and geoscientists in the world. Not just at Chesapeake, but by experts at many of the world’s leading energy companies that have made multi-billion-dollar, long-term investments in U.S. shale gas plays, with us and many other companies. Notable examples of these companies, besides the leading independents such as Chesapeake, Devon, Anadarko, EOG, EnCana, Talisman and others, include these leading global energy giants: Exxon, Shell, BP, Chevron, Conoco, Statoil, BHP, Total, CNOOC, Marathon, BG, KNOC, Reliance, PetroChina, Mitsui, Mitsubishi and ENI, among others. Is it really possible that all of these companies, with a combined market cap of almost $2 trillion, know less about shale gas than a NYT reporter, a few environmental activists and a handful of shale gas doubters? I seriously doubt it and I expect you do as well. (more...)

https://www.facebook.com/note.php?note_id=10150305143547565

Edited by: RuNuts on Nov 8, 2014 - 5:18am
Mon, Jun 27, 2011 - 10:07pm
Biscuit
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Mr. McClendon is exactly right.

An insider's perspective: Over the last thirty years or so I've observed the oil field service industry continuously improve its environmental stewardship to the point that it is difficult to envision a more 'green' operation. Hydraulic fracturing has become THE way (combined with horizontal drilling) to make it economically feasible to extract significant quantities of gas and oil in the USA. The agenda of the so-called environmental groups that have targeted fracking has to be something other than true concern about environmental issues.

It is sad to see reporters who have no working knowledge of an industry about which they report able to rally equally clueless supporters to stymie an industry that is working to solve a portion of our energy dependence problem.

Tue, Jun 28, 2011 - 10:01am
SushiSioux
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Chesapeake Energy Suffers Gas Well Blowout On Anniversary Of BP

corporations would never rever stretch reality when its in their interests? NY Times article that got their knickers in a twist

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no wonder Chesapeake is feeling defensive.

Chesapeake Energy Suffers Gas Well Blowout On Anniversary Of BP Spill

Chesapeake Energy has lost control of a natural gas well in the Marcellus shale that was in the process of being fracture stimulated. Thousands of gallons of salt water, likely mixed with minute quantities of chemicals used in the controversial but long-established fracking process have reportedly spilled out of the well and into a stream near Canton, Pa. The suspected cause of the incident, which occurred just before midnight Tuesday, is a cracked well casing.

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Whoops.

Thu, Jun 30, 2011 - 10:41pm
Rico
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Aubrey McClendon is a

Aubrey McClendon is a card-carrying sociopath--he's one of the biggest crooks working today.

Thu, Jun 30, 2011 - 10:59pm (Reply to #4)
Eric Original
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Rico

Rico wrote:

Aubrey McClendon is a card-carrying sociopath--he's one of the biggest crooks working today.

agreed!

This isn't a metals blog anymore. It's a right wing circle jerk, masquerading as a metals blog.

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