Comments on: The Natural Gas Fracking Bubble & Scam (Fracking Ponzi Scheme?)

By: Fred

Fred — Fri, 15 Mar 2013 01:25:00 +0000

Another negative not mentioned in the article is that the depletion rates for fracked wells are much quicker than for traditionally drilled wells. I’ve seen some studies that indicate a majority have production declines as much as 80-90% after the first 12-18 months. Another indication this could be a gigantic Ponzi scheme – pay off the early investors with big returns in the first 12-18 months and then keep the returns coming from new investors until the bubble bursts. I also saw a recent study that indicated the number of operating drilling rigs has dropped by around 50% in the last 12 months. TIme to put your money in coal as the utilities that switched to Nat. Gas under $3.00 will now be putting in their coal orders and loading up on coal again.

By: US Leading the World in CO2 Emissions Cuts? Will It Continue? - CleanTechnica

US Leading the World in CO2 Emissions Cuts? Will It Continue? - CleanTechnica — Fri, 20 Jul 2012 16:08:17 +0000

[…] a price on carbon and putting more into renewables. But the fact of the matter is that natural gas (artificially or not) is basically as cheap as any other major energy source these days (see the LCOE tab). So, […]

By: Pickens Dumps Chesapeake Energy, Vermont to Outlaw Fracking, 55 Investors With $1 Trillion Want Shale Gas Fracking Cleaned Up - CleanTechnica

Tue, 22 May 2012 13:05:13 +0000

[…] covered Rolling Stone‘s excellent piece on a potential fracking bubble and scam back in March, and while I know that many are sold on fracking’s benefits (even Obama, it […]

By: Bob_Wallace

Bob_Wallace — Wed, 07 Mar 2012 18:59:00 +0000

We’ve essentially quit building coal plants in the US. I think there has been only one permit approved in the last three years. And we’re currently closing over 100 of the worst coal plants.

It would be nice if we could introduce a big carbon tax in order to speed the transition to renewables, but I can’t see that being politically possible. People will not stand for having their electricity and gas prices raised by new taxes.

There’s a slight chance of that changing. If people get even more worried about climate change, then perhaps.

I think our only hope is to price fossil fuels out of business. I don’t think (and the futures market agrees) that natural gas price will double over the next few years.

Wind is cheap and getting cheaper. Solar is cheaper than new coal and cheaper than gas peaker plants. Fueling an EV with average priced electricity is like driving your 30MPG gasmobile with $1/gallon gas. (Actually, cheaper.)

All we need to speed the move to renewables is cheaper storage for both grid and vehicles. It looks like we’ll have that soon.

—

In the meantime, there are things that we as individuals can do.

If available, sign up for green electricity. If necessary pay a bit more for your power and look for ways to cut your usage so that your budget doesn’t suffer.

Lower your electricity consumption. The less we use, the less new clean generation we have to build. Insulate, weatherize, switch to CFLs and LEDs, dress for the season rather than trying to create a different season, turn of stuff you aren’t using, if possible run your washer/dryer/dishwasher late at night rather than during peak hours, ….

Think hard about switching to an EV. Many folks could do just fine with a “100 mile” EV, then using public transportation or rental cars for the infrequent longer trips. I know people who are doing just fine with a “30 mile” EV conversion car/pickup.

Vote for people who will create the change and against those who work for the fossil fuel industry.

By: curly4

curly4 — Wed, 07 Mar 2012 18:02:00 +0000

If natural gas is as bad as coal then the both of them should be phased out and the sooner the better. More restrictions should be placed upon drilling for and production of methane until it is no longer economical to use as a fuel. Coal fired power plants should have there emissions standards strengthened and now new permits should be issued to build more or to renovate older ones. As these coal fired plants reach the end of their lives they should be retired. With the knowledge that these sources of electric power will be going (no reprieve) will spur forward the replacement with other sources.

By: Green News Roundup: Wednesday, March 7th, 2012

Green News Roundup: Wednesday, March 7th, 2012 — Wed, 07 Mar 2012 14:01:15 +0000

[…] Natural Gas Fracking Bubble & Scam [CleanTechnica] […]

By: Wes McCann

Wes McCann — Tue, 06 Mar 2012 15:43:00 +0000

We’re already paying out the nose for gasoline, and natural gas. The idiot here is you. Thinking we need petrochems for ANYTHING. We don’t. The human race survived for more than 120,000 years without HALLIBURTON, and Chesapeake, and it sure as hell survived without petrochemicals. We can do it again.

If I have to choose between having it easy and breathing and drinking toxic waste, and working a bit harder to survive, I think I choose to work harder. Thanks for playing.

By: Wes McCann

Wes McCann — Tue, 06 Mar 2012 15:39:00 +0000

Yeah we’re not really interested in what Chesapeake OR HALLIBURTON have to say about what they do. We know what they do. They lie, they destroy, and they steal property value. They kill, they ruin, they rape. They don’t do anything properly until they are FORCED to by legal action.

Tellya what EX, go to Butler,PA, drink deep from the well water. Then tell us how safe fracking is, ok? How nutritious and healthy the water is. Hang around the condensate tanks for a few hours, breath deeply, let us know how that works out for you. Because humans can breath chemicals like benzene, methyl ethers, xylene, toluene, and a whole grocery list of VoC. When your staggering around, and shaking like a palsy victim. Let us know how awesome carbon energy is.

By: Wes McCann

Wes McCann — Tue, 06 Mar 2012 15:33:00 +0000

Uh yeah. Regardless of ponzi or not, fracking has a very limited lifetime. Resistence is growing. Everyone who is against fracking for whatever reason, be it toxic air pollution, or aquifer contamination, we all know that the proponents are either Oil Workers, land owners with leases for drilling, or OIL INVESTORS. No one is interested in natural gas as a hobby.

We’ve been taking in by the fact that fracking is bad on multiple faces. PONZI scheme not withstanding, Which wouldn’t surprise me in the least. Considering this whole ‘gas boom’ has shown RECORD amounts of gas reserves in the last year (causing the price to drop dramatically).

Where are the savings? Where is the cheap gas? It’s a lie. And when the lie is exposed by the collapse of the carbon based economy, we’ll see what’s what. It’s only a matter of time.

By: Zachary Shahan

Zachary Shahan — Tue, 06 Mar 2012 14:48:00 +0000

I’m not in denial about the existence of natural gas, but it’s price is unnaturally low.

By: exdent11

exdent11 — Tue, 06 Mar 2012 14:27:00 +0000

Zack,
You have been taken in by the Rolling Stone piece. There is no doubt that Chesapeake’s business model is aggressive but you are wrong to believe the rest of the industry would play along with such an alleged ponzi scheme.After all,some serious companies, with on the ground experience, have to cough up big bucks to buy those leases from Chesapeake. I lived in Susquehanna County Pa. and I can assure you that the gas is no figment of one companies imagination. When they have fully developed the Marcellus[ which will take decades] there is a larger field, the Utica , which is deeper and covers a larger area than the Marcellus to develop. Because of my interest in the field , I follow the discoveries in North America and hardly a week goes by that new techniques are not opening new formations to yields of oil and gas that were thought impossible a few years ago. If you haven’t read Chesapeake’s rebuttal I suggest you do so.
There is a problem of too much methane escaping into the atmosphere, most of which is happening at well completion. This is being addressed at the state level as in New York and will soon be by the EPA at the national level. Also new techniques for fracking such as LPG fracking will address the methane problem as well as increase the recoverable oil and gas by 25% to 300% depending on how water sensitive the formation.
I strongly support renewables but natural gas is not going away .

By: Edward Kerr

Edward Kerr — Tue, 06 Mar 2012 12:58:00 +0000

Ponzi scheme or not, it’s activities like Chesapeake’s that distract us from working toward a clean energy future. Sadly, it also gives false hope to “fossil fuel Luddites” and their shills like Mr Smith. Denial of a problem leads to, obviously, not taking action. Until we can generate the power that we need to operate our civilization without burning (and wasting) coal and oil we have a problem. Those who pay attention to this problem realize that it is a big problem, indeed. The solutions are staring us in the face and self-serving (and possibly criminal activities) like those exposed here, only serve to muddy the water.

Good post Zach,
Ed Kerr

By: Bob_Wallace

Bob_Wallace — Mon, 05 Mar 2012 23:27:00 +0000

I suspect you might be well served by going back and reading the article carefully, Lsmith.

Or even reading it for the first time….

By: Lsmith

Lsmith — Mon, 05 Mar 2012 23:04:00 +0000

You guys are all idiots. If there wasn’t fracking, there wouldn’t be any oil or gas produced. So if you are geared to pay massive amounts of money for fuel and for products produced by this industry (which is most), keep it up.

By: Zachary Shahan

Zachary Shahan — Mon, 05 Mar 2012 18:23:00 +0000

Thanks. Useful info.

By: Green_Mom

Green_Mom — Mon, 05 Mar 2012 18:13:00 +0000

Zachary, I love your site and I’m not a fan of fracking, but you should know that Arthur Berman says he was misrepresented in Rolling Stone and never claimed that Chesapeake’s business model was a Ponzi scheme.

Here’s a link to his statement: http://petroleumtruthreport.blogspot.com/2012/03/i-was-mis-represented-in-rolling-stone.html

By: Zachary Shahan

Zachary Shahan — Mon, 05 Mar 2012 16:46:00 +0000

understand that. i didn’t repost that section of the article, but the Rolling Stone piece really goes into the horrors of having natural gas frackers in your backyard pretty well, especially on page 4.

By: Mattpeffly

Mattpeffly — Mon, 05 Mar 2012 16:37:00 +0000

Live in Ohio, been praying this fracking bubble pops soon; the sooner the better. So they destroy less of the water resourses in the state.