E-mails published in The New York Times reveal that industry consultants and analysts say that public statements by the gas industry do not match reality. In these e-mails, people within the industry voice grave concerns, because the analysis of data from thousands of wells shows that industry has organized a massive illegal ponzi scheme.

In the e-mails, energy executives, industry lawyers, state geologists, bank officials, and market analysts voice skepticism about lofty forecasts and question whether companies are intentionally, and even illegally, overstating the productivity of their wells and the size of their reserves. Many of these e-mails also suggest a view that is in stark contrast to more bullish public comments made by the industry, in much the same way that insiders have raised doubts about previous financial bubbles.

These 487 pages (in the first story alone, more in the following articles) of insider e-mails show a great deal of cynicism, skepticism and outright dismay with the way the gas industry is portraying the “shale gas revolution,” including questions about companies’ much hyped projections for the amount of gas in shale plays. And Deborah Rogers, advisor for the Federal Reserve Bank of Dallas says, “We have a big problem and we need to take a close look at this right away.” She started studying well data from shale companies after attending a speech by the chief executive of Chesapeake, Aubrey K. McClendon.

http://www.nytimes.com/2011/06/26/us/26gas.html?_r=1

JUNE 26, 2011 | NATURAL GAS INVESTMENTS

Insiders Sound an Alarm Amid a Natural Gas Rush

As investment floods into shale wells, concerns about their productivity are spurring talk of a bubble.

Sweet Spots, But Not Many
Overestimating Natural Gas Production
Industry Privately Skeptical of Shale Gas

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ARTICLE from Monday Times 6/27/11

Behind Veneer, Doubt on Future of Natural Gas

Drilling Down. Behind Veneer, Doubt on Future of Natural Gas. Kathy Chruscielski. A drilling operation in Texas.

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ARTICLE from Wednesday Times 6/28/11

Lawmakers Seek Inquiry of Natural Gas Industry

Including Congressman Hinchey

http://watertown.ynn.com/content/all_news/548169/hinchey-on-shale-gas-drilling/

WASHINGTON, D.C. — Congressman Maurice Hinchey responds to new information revealed in a New York Times article about the questionable economic benefits of shale gas drilling

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— see the whole series

http://www.nytimes.com/interactive/us/DRILLING_DOWN_SERIES.html?scp=1&sq=drilling%20down&st=cse