Home » attain alternatives blog » Waking the Dead on Supply & Demand

Waking the Dead on Supply & Demand

Many times, as we comment on the markets, there’s a tendency to simplify things – perhaps overly so. Sure, it’s easy to keep it at basic supply and demand, citing production and export data, but in reality, below those surface numbers, it’s much more complicated. Take natural gas, for instance. We can talk about fracking and gluts, but then there’s this gem from the New York Times about a new potential challenge facing Chesapeake – a firm that has lately been having enough problems as it is:

Chesapeake Energy, the second-largest natural gas producer in the country, has worked with more than a dozen cemeteries in the Fort Worth region and has drilled directly beneath many of them at depths of more than a mile and a half, company executives said.

The company drilled six wells about 1,700 feet from the tombstones at Greenwood Memorial Park and 10 wells about 1,800 feet from the grave sites at Mount Olivet Cemetery. Company officials said that they had not received any complaints from relatives about graves being disturbed, but that they did get several calls from family members of those buried at Greenwood asking if they could collect mineral-right royalties from their loved one’s burial plot.

“Chesapeake Energy takes great pride in our neighbor relations – whether those neighbors are families, schools, hospitals or cemeteries – and treats each with the respect and sensitivity they deserve,” said Julie H. Wilson, the company’s vice president for urban development. “Some of our own family members are buried in these cemeteries or live near them.”

But antifracking activists, lawyers and environmental scientists said that while there might be nothing legally wrong with fracking underneath cemeteries, they were uncomfortable with the practice, arguing that it raised spiritual and moral questions and illustrated a callousness in the desire to drill for natural gas anywhere at any time.

Our non-market relevant reaction? Gross.

Now, will news like this impact the markets? Our armchair analyst take is likely no, but between the recent return of “widowmaker” swings in natural gas and all the nuances (like these) that factor into those supply and demand numbers… Well, perhaps we just chalk this one up to yet another reason trading on your own is a lot harder than it looks.