We have warned of the pending "Environmental Taxes" forthcoming to the domestic oil and gas produers who utilize hydraulic fracking to produce oil, natural gas and NGL's.
We have further warned that the natural gas industry in particular has failed to manage their environmental and operational risk to the magnitude of facing a complete ban on hydraulic fracking in many Eastern U.S. States.
Given the continued abuse by the natural gas and oil producers and mounting incidents of water table contamination, fires and other drilling related problems in high and low density populated areas, and the pending law that will in essence "kill fracking" by virtue of eliminating the use of toxic chemicals in wells, we have come to the conclusion that the States and Federal Government will in unison and individually start to ban fracking operations across the U.S.
We do not see anyway for the natural gas and oil industry to lobby out of this very serious problem, which Mr. Miller considers a death nail to many natural gas producers, who are already on the margin due to extremely low natural gas prices.
Political and public opinion is overwhelmingly now against fracking and we see the momentum to ban fracking as irreversible.
As previously noted, Mr. Miller was one of the senior energy executives instrumental in effectively killing the previously proposed "Cap and Trade" plan in Washington. Mr. Miller is active in all facets of energy lobby including being a major supporter of natural gas.
However, there are reasons that the Natural Gas industry remains large in size, yet a "cottage" industry both financially and politically. This is one of the major reasons natural gas, and shale gas producers are substantially overvalued and have many years to go before they become "mainstream".
We suggest Jim Cramer follow Mr. Miller at: karlwmiller.blogspot.com/
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