E.C. 3 - Esaias Tong Extra Credit #3 2305-058 A New York...

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Esaias Tong Extra Credit #3 2305-058 A New York Times article published on June 28, Lawmakers Seek Inquiry of Natural Gas Industry, reported that federal legislature had called on the investigation to see whether the natural gas industry has provided inaccurate information to mislead investors about the profitability and sustainability of their wells in the long-term. If there are any misleading information in extrapolating the production of natural gas, it could affect our nation’s energy policy. (Urbina, Iam) Another New York Times investigation of documents from sources of internal documents and industrial emails suggests profits from alternative methods for shale gas extraction have been lower than expected, probably a result from energy companies exaggerating the productivity and plant size of the natural gas reserves. ("S.E.C. Shift Leads to Worries of Overestimation of Reserves.") The lawmakers have called on the federal Government Accountability Office, the Energy Information Administration and the Securities and Exchange Commission to investigate. They have also initiated investigation into charges of overbooking of reserves. Oversight problems and rule changes (Urbina, Iam), such as the one by the Securities and Exchange Commission, which had the intent to update how energy firms report their natural gas reserves may have caused an overestimate of the industry’s reserves. ("S.E.C. Shift Leads to Worries of Overestimation of Reserves.") Several lawmakers sent letters to Securities and Exchange Commission reconsider some of these rule changes which permit natural gas companies to evade details disclosure about the technology, namely hydraulic fracturing, used to forecast natural gas production or third- party audits. (Urbina, Iam)
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This note was uploaded on 08/17/2011 for the course GOVT 2305 taught by Professor Nwachie during the Spring '09 term at Austin Community College.

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E.C. 3 - Esaias Tong Extra Credit #3 2305-058 A New York...

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