Deborah Rogers, founder of Energy Policy Forum, was profiled in an in-depth article on Chesapeake Energy titled “Big Fracking Bubble:
The more land they acquire, the more capital they have to spend upfront,” says Deborah Rogers, a former investment banker who learned just how precarious Chesapeake’s business model was when she looked into the firm’s financial statements after the company sunk wells near her property in Texas. “Then they have to drill it or lose it, which further adds to capital costs. And the more they drill, the more gas they produce, which lowers the price of gas and further reduces their revenues. In the end, this drilling treadmill is difficult to sustain for long – especially if the wells underperform, or the resource turns out to not be as valuable as they thought.”
Read full article here…