Monday, June 27, 2011

Report: Natural Gas Insiders Question Feasibility, Profitability of Industry


"Newly disclosed figures and internal documents are raising fresh doubts about natural gas drilling in the United States. According to the New York Times, well-placed financial analysts and experts have circulated warnings about the feasibility and profitability of drilling in shale gas wells across the nation. An August 2009 memo from the firm IHS Drilling Data says, “The word in the world of independents is that the shale plays are just giant Ponzi schemes and the economics just do not work.” Earlier this year, an analyst at PNC Wealth Management compared natural gas projects to the dot-com boom, saying, “money is pouring in” even though drilling is “inherently unprofitable.” In another memo, a retired geologist for a major oil giant writes, “These corporate giants are having an Enron moment… They want to bend light to hide the truth.” A review of more than 9,000 wells shows many wells are failing to meet industry projections, with just 10 percent recouping their estimated costs after seven years. Just 20 percent of wells in three highly regarded shale formations in Texas, Louisiana and Arkansas are believed to actually be profitable. The previously undisclosed data could raise questions about whether companies are illegally inflating claims about the size and productivity of their wells. A former Enron executive who went on to work for an energy company compared the behavior of shale gas firms to his former employer, writing, “I wonder when they will start telling people these wells are just not what they thought they were going to be?”' Link>>>>

The New York Times
By Link
Published: June 26, 2011

..."In scores of internal e-mails and documents, officials within the Energy Information Administration, or E.I.A., voice skepticism about the shale gas industry.

One official says the shale industry may be “ set up for failure.” “It is quite likely that many of these companies will go bankrupt,” a senior adviser to the Energy Information Administration administrator predicts. Several officials echo concerns raised during previous bubbles, in housing and in technology stocks, for example, that ended in a bust."... More>>>>

Monday, June 13, 2011

Firm says deal with land grant opens area to drilling

Tom Sharpe | The New Mexican
Posted: Sunday, June 12, 2011

"A Canadian firm says it has a deal with a land-grant association that could open up parts of Rio Arriba County to petroleum drilling that previously were restricted by questionable land titles.

Wind River Energy Corp. says it has agreements with the board of trustees of the Tierra Amarilla Land Grant that could mean billions of barrels of oil, mostly from shale deposits that require "fracking."

"Wind River believes that the waiver will resolve a 150-year-old historical title cloud that has constrained oil and gas development on the Tierra Amarilla Land Grant," a recent news release says.

The Vancouver, British Columbia-based company has issued three news releases since late last year, announcing it has acquired from a Texas firm a waiver and an indemnification agreement with the Tierra Amarilla Lane Grant board, which was paid $233,979.

Wind River's Denver-based president and chief executive officer, Jack Steinhauser, said the news releases are public disclosures required by the regulations of the Toronto Venture Exchange, where Wind River's stock is traded." More

Wednesday, June 1, 2011

"Gasland" Screening in Santa Fe

"On Tuesday, June 21st at 7:00 p.m...." "...a screening of Gasland at the Center for Contemporary Arts in Santa Fe with the event's cosponsors: Conservation Voters New Mexico, Drilling Mora County and representatives from several organizations who are opposing fracking in New Mexico. And after the event, we will have a panel discussion that will feature representatives from these organizations and our Executive Director, Wenonah Hauter who will discuss our national efforts to ban fracking. Come early to chat with us and learn what you can do to make a difference.

RSVP and spread the word today!

Hope to see you there

Sam Schabacker
Senior Organizer

Food & Water Watch


Tuesday, 6/21, 7-9 pm

Center for Contemporary Arts
Moving Image Lab
1050 Old Pecos Trail, Santa Fe, 87505
Google map

Food & Water Watch is a nonprofit consumer organization that works to ensure clean water and safe food. We challenge the corporate control and abuse of our food and water resources by empowering people to take action and by transforming the public consciousness about what we eat and drink."