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Boone Pickens on Chesapeake and the Future of Energy in America

May 16, 2012 | About:


T. Boone Pickens, BP Capital founder, discusses his views on the nation's energy policies, oil & natural gas prices, and concerns at Chesapeake Energy, with Kenneth Langone, Geeknet CEO.

Pickens did not short Chesapeake Energy (CHK). He won't best against Aubrey (Chesapeake CEO).

Rating: 2.5/5 (10 votes)


Gusto.duel - 2 years ago
Mr Pickens first said the "Founder's well participation program" at CHK was "OK" (meaning "don't worry...")

then sold his shares of CHK.

So maybe the grain of salt from Arthur Berman must be paid due attention. A throughout analysis on the shale gas is available on Mr Arthur Berman's site: Theoildrum. A quote:

"... Discounted cash flow models were developed for each of the shale gas plays in this study to determine the break-even gas price. The EUR/well in each shale play is the most important assumption determining the breakeven gas price. Exhibits 19 and 20 show the breakeven gas prices for the average EUR/well values discussed in previous sections of this report. Assuming fully burdened costs including land acquisition, the breakeven gas price ranges from $8.31/MMBtu in the Fayetteville Shale to $8.75/MMBtu in the Barnett. With point-forward costs, which include only well drilling and completion costs and variable operating costs, the breakeven gas price is lower, ranging from $5.06/MMBtu in the Fayetteville to $6.80/MMBtu in the Haynesville. "

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