New York Times article refers to shale gas drilling as a "giant ponzi scheme".

http://www.msnbc.msn.com/id/43539470

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landownerPermalink Reply by adubu on June 26, 2011 at 14:42
Ezra-- The Dallas paper is becoming liberal along the lines of the NY Times IMO

Oil & Gas ProPermalink Reply by Katie McCullin on June 27, 2011 at 2:03

Thought you might find this interesting and informative. In response to this article, Chespaeake's CEO sent a letter to each of the company's employees. Here you go!

 

Aubrey McClendon's Letter to Employees


landownerPermalink Reply by adubu on June 27, 2011 at 3:40
KM---- Great Letter by Aubrey

Oil & Gas ProPermalink Reply by Katie McCullin on June 27, 2011 at 3:45
Thanks! Glad you enjoyed it.

Oil & Gas ProPermalink Reply by The_Baron on June 27, 2011 at 8:43

Seems to me that the Times struck a nerve...

 

I think there is a good deal of truth to what they say in the current price structure. IF n.gas were to rise even by a few bucks I think it would be a  didderent game al togther.


landownerPermalink Reply by Bill R on June 27, 2011 at 8:54
Yeah, I think NG @ around $7 would kindle a whole different game. 

Oil & Gas ProPermalink Reply by Mark Pomeroy on June 28, 2011 at 7:54

The average ultimate recovery from Hayneville wells will be 3 to 4 BCF of economically significant production.  At $5.00 gas, this will not provide a reasonable rate of return on $11 million wells (includes well, land, infrastructure).  The link to Mr. McClendon's letter is broken, but in the excerpts I read, he never says the play will pay out.  If he didn't say that it will, it's an interesting omission since that is the crux of the NYT article.  It's a great time to be a royalty owner.

 

Permalink Reply by Parkdota on June 27, 2011 at 8:52

Today on msn money...video about "natgas bubble".

 

http://money.msn.com/how-to-invest/video.aspx?vid=0f85d0ec-3973-4ba...


landownerPermalink Reply by adubu on June 27, 2011 at 9:18
Parkdota--- CNBC is also biased to left--this guy Ina Urbina is a fear mongering demagoguery of 1st class every article is about liberal biased as you can write. He has written on toxic chemical in water from hydraulic fracing and negative stuff about the Horizon Oil Rig blow out. (He is full of Junk Science)   I wonder if he is related to the baseball player from Venezuela that was arrested for attempted murder few years ago?? Is he from Venezuela? Is in US legally?
Permalink Reply by Parkdota on June 27, 2011 at 9:26
Adubu....ha yeah he probably is.  I just posted for others to see as I don't believe a word of the hype.  More so, I believe the usage of words such as "ponzi scheme" and "bubble" are silly at best and can even be considered irresponsible.  Just like many other businesses in America if we survive the down times and contraction then massive rewards are in the near future.  Natgas got a double hit with oversupply but the big operators are HBPing and after that prices will rebound.  Everyone will be happy again. 

landownerPermalink Reply by Joe Aldridge on June 27, 2011 at 9:28
No, not the Green People or Obama.

landownerPermalink Reply by adubu on June 27, 2011 at 9:30
Parkdota--- yep would hate to think $4 NG is a "Bubble" price

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