Crimes Against Investors Getting Attention; Next, the Public?
(Picture courtesy of eggrole’s photostream in flickr.com.)
As the usual suspects among oil drilling interests encroach ever farther into crimes against the public, at least their falsification of investors’ prospects are getting needed attention. In New York, where even the destruction of the environment makes some headway, increasing indications that the fracking prospecti are full of misinformation has made an impression on the justice functionaries.
Recently freed up from his supervisory duties on fraudulent mortgages, New York AG Schneiderman has put out subpoenas requesting figures about the increasing signs that the amount of oil actually in that shale has been seriously exaggerated.
Last week, Schneiderman sent the energy companies subpoenas demanding internal documents bearing on the formulas they used to predict how much gas their wells are likely to produce, as well as documents related to the companies’ estimated drilling costs, which were factored into calculations used to predict the wells’ future profitability.
New York has millions of dollars in state pension funds invested in the four energy companies under investigation. If the companies misled investors as to how its wells were likely to perform, or failed to disclose the true costs of drilling, the state of New York could lose some of its investment.
As I posted here recently, knowledgeable financial officials have tried and failed to get real proof that the amount of oil being advertised to investors has been shown to exist. So far, oil companies have produced no geologists’ records that substantiate their claims.
As noted here; “There is increasing evidence of the lack of real wealth to be produced, that is turning up in further study of the national push to get fracking going under the current lack of a responsible regulatory environment. Recently on CNBC an interview with Dallas Federal Reserve advisory board member Deborah Rogers brought out a startling lack of geological evidence that there is present in shale enough gas reserves to justify the expenses of drilling.”
Oil companies are showing an increasing lack of dependability about the information they supply to the public. Fracking is damaging an environment that we cannot replace or repair. That investors should beware is at least one protection even the right wing will have to pursue, at least, in its chosen role of robbing the poor to give to the rich. What a choice, whether to protect the rich investors, or the ‘job giving’ oil companies!