Steven Ward

Chesapeake Energy Called the Market's Bluff

The real problem for CHK and others like her is the use of water in the fracturing process. The amounts are huge and already a water shortage is developing in Denison County Texas, heart of the Barnett Shale,for 2010 and that comes from the local water commiisioners who have been, obviously, pro drilling and pro development.

This problem will come to the forefront regardless of who is President. The drillers will have to go back to gel packs which will raise the cost substantially. This should reduce supply which will drive up prices.
The water issue is worsening and it can no longer be overlooked as well as waste water disposal which is just as serious.
I own tar sands and Bakken shale stocks who also have their pollution problems but this specific issue will come down harder on the investor.
I predict fratracide warfare amongst the Dems. will be fun to watch.