Chesapeake Energy

Will LNG Exports Save the Shale Gas Drilling Industry's Profitability? Not So Fast

Last year, a wave of bankruptcies swept the oil and gas drilling industry as oil prices collapsed, leading to layoffs, lost revenues for communities, and turning former boomtown-era mancamps into ghost towns in places like North Dakota's Bakken shale.

Even before oil prices plunged, the price of shale gas was already under siege from a domestic supply glut caused by the shale drilling frenzy. All told, prices dropped from its all-time high of over $15/mcf when the shale boom began in 2005 to $1.57/mcf — the lowest levels since 1998 — in March.

For shale exploration and production companies, however, the conventional wisdom has held for years that there is a light at the end of the tunnel — gas exports.

Unlike oil, natural gas is difficult to transport across oceans. To ship gas by tanker, it needs to be cooled to below -256 degrees Fahrenheit, an expensive and technologically challenging process, requiring the construction of multi-billion dollar Liquefied Natural Gas (LNG) import and export terminals.

Top Drillers Shut Down U.S. Fracking Operations as Oil Prices Continue to Tank

It was a tumultuous week in the world of hydraulic fracturing (“fracking”) for shale oil and gas, with a few of the biggest companies in the U.S. announcing temporary shutdowns at their drilling operations in various areas until oil prices rise again from the ashes.

Among them: Chesapeake Energy, Continental Resources and Whiting Petroleum. Chesapeake formerly sat as the second most prolific fracker in the U.S. behind ExxonMobil, while Continental has been hailed by many as the “King of the Bakken” shale basin located primarily in North Dakota.

Former Chesapeake Energy CEO Aubrey McClendon Bringing Fracking to Argentina

Aubrey McClendon, the embattled former CEO and co-founder of Chesapeake Energy, has announced his entrance into Argentina to begin hydraulic fracturing (“fracking”) in the country's Vaca Muerta Shale basin.

Though he retired as Chesapeake Energy's CEO back in 2013 in the aftermath of a shareholder revolt, McClendon wasted little time in creating a new company called American Energy Partners (AEP). AEP, like Chesapeake, has found itself mired since its onset in legal snafus over its treatment of landowners. With AEP not getting a red carpet roll-out in the U.S., McClendon has looked southward for other lucrative business adventures.

"Bait and Switch": Pennsylvania Sues Driller and Pipeline Company Over Deceptive Deals

Pennsylvania's beleaguered top prosecutor has filed a civil action against two of the nation's largest oil and gas companies, Chesapeake Energy and pipeline company Williams Partners LP, alleging that the companies defrauded over 4,000 property owners out of the royalties owed for shale oil and gas produced from their land.

“This alleged conduct amounts to a 'bait-and-switch,'” Attorney General Kathleen Kane said in a statement. “Pennsylvania landowners were deceived in thousands of transactions by a company accused of similar conduct in several other states,” she added, referring to Chesapeake Energy, which has faced class actions in Texas, Louisiana and Ohio over its royalty payments.

Meet the Lobbyists and Big Money Interests Pushing to End the Oil Exports Ban

The ongoing push to lift the ban on exports of U.S.-produced crude oil appears to be coming to a close, with Congress introducing a budget deal with a provision to end the decades-old embargo

Just as the turn from 2014 to 2015 saw the Obama Administration allow oil condensate exports, it appears that history may repeat itself this year for crude oil. Industry lobbyists, a review of lobbying disclosure records by DeSmog reveals, have worked overtime to pressure Washington to end the 40-year export ban — which will create a global warming pollution spree.

Fracker Aubrey McClendon Signs Deal in Mexico with Firm Led by Former Mexican President

Aubrey McClendon, former CEO of hydraulic fracturing (“fracking”) giant Chesapeake Energy and current CEO of American Energy Partners (AEP), has signed a joint venture with a private equity firm led* by former Mexico president Vicente Fox.* 

In a joint press release, AEP and EIM (Energy and Infrastructure Mexico) Capital announced a “long-term, landmark partnership to explore the vast exploration and development opportunities offered by Mexico's abundant oil and gas energy resources.” The deal serves as another case study of U.S.-based companies cashing in on the Mexico energy sector privatization policy the U.S. State Department helped make possible under both the Obama Administration and the Bush Administration.

Back to School: "Frackademia" Alive and Well at U.S. Universities, Says New Report

The Public Accountability Initiative (PAI) has published a timely “back to school” report concluding that “frackademia” is alive and well at U.S. universities. 

While only focusing on the people and money behind five recent studies, PAI's report sits within a much broader universe of research in its Frackademia Guide. The new report serves as an update of its February 2015 report titled, “Frackademia in Depth,” a title poking fun at hydraulic fracturing (“fracking”) front group Energy in Depth (which did not react kindly to its report).

Once Burned, Twice Shy? Utica Shale Touted to Investors As Shale Drillers Continue Posting Losses

For the past several weeks, the drilling industry — hammered by bad financial results — has begun promoting its next big thing: the Utica shale, generating the sort of headlines you might have seen five years ago, when the shale drilling rush was gaining speed. “Utica Shale Holds 20 Times More Gas Than Previous Estimates”, read one headline. “Utica Bigger Than Marcellus”, proclaimed another.

Will Re-Fracking be the Shale Drilling Industry's Next Big Move?

With oil prices continuing to languish, companies like Halliburton and Schlumberger have started talking up a way to get more shale oil and gas for less money: re-fracking wells drilled over the past 10 years, kick-starting flagging production and pumping out more shale oil and gas while spending less than the cost of a new well.

Excitement has spread among oil companies and investment analysts alike.

Internal Documents Reveal Extensive Industry Influence Over EPA's National Fracking Study

In 2010, the Environmental Protection Agency (EPA) launched an ambitious and highly consequential study of the risks that hydraulic fracturing, or fracking, poses to American drinking water supplies.

This is about using the best possible science to do what the American people expect the EPA to do – ensure that the health of their communities and families are protected,” Paul Anastas, Assistant Administrator for the agency's Office of Research and Development, said in 2011.

But the EPA's study has been largely shaped and re-shaped by the very industry it is supposed to investigate, as energy company officials were allowed to edit planning documents, insisted on vetting agency contractors, and demanded to review federal scientist's field notes, photographs and laboratory results prior to publication, according to a review by DeSmog of over 3,000 pages of previously undisclosed emails, confidential draft study plans and other internal documents obtained through open records requests.

Company officials imposed demands so infeasible that the EPA ultimately dropped a key goal of the research, their plans to measure pollution levels before and after fracking at two new well sites, the documents show.

All told, the documents raise serious questions about the study's credibility and they highlight a certain coziness between the EPA and Chesapeake Energy, one of the most aggressive oil and gas companies in the shale gas rush.

“[Y]ou guys are part of the team here,” one EPA representative wrote to Chesapeake Energy as they together edited study planning documents in October 2013, “please write things in as you see fit”.

Chesapeake took them up on the offer.

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