If you’re interested in the fracking issue, especially the big currents that drive it, there’s been no better source for insights than Reuters, which has exposed the land speculation, shady finances and inner dealings of some of the industry’s biggest players.
This latest analysis, based on the series, says the big energy-driven land rush is over.
With little evidence that its competitors are taking on the role of leading industry lease-buyer, Chesapeake’s new found frugality is expected to usher in a more sedate period of U.S. land buying, and a sizeable cultural shift for an industry that has been acquiring new acreage at almost any cost.
A surge in drilling into rich shale-gas seams from Pennsylvania to Texas has pushed natural gas prices to 10-year lows, forcing producers, including Chesapeake, to cut output and put the brakes on new wells.
In a practical sense, what that means for North Carolina is less frenzy, which is a good thing. It does not mean land speculation isn’t going to happen, but there’s less cash sloshing about and, because of prices, less economic incentive to open up new areas.
Reuters also is keeping up its investigative work on possible collusion on purchases between Chesapeake and Encana in Michigan.
As Chesapeake Energy Corp and Encana Corp face antitrust investigations, emails reviewed by Reuters indicate that top executives of the two rivals shared sensitive information that gave Chesapeake the upper hand in deals with Michigan land owners.