Fracking has the potential to massively alter the USA's energy sources, almost certainly making us far less dependent on unreliable and potentially hostile suppliers like Venezuela and the Middle East. So when I see reports--like this one from Broc Romanek--I get a little cranky:
Last week, the WSJ ran this article about how Corp Fin is peppering oil & gas companies with comments about fracking. Members were quick to ask: "Is Corp Fin pulling the '34 act reports for all oil & gas companies as part of a special targeted review project?"
Personally, I don't think that these is a "special" review project and that these comments are being delivered in the normal-course review process. Clearly, this has been a big topic for the oil and gas industry for some time. For example, the Interfaith Center on Corporate Responsibility ran this press release on Friday noting the WSJ article and that an investor coalition has been pressing 2 dozen companies on this issue through shareholder proposals since '09. So it's become a high profile issue and perhaps Corp Fin's actions will help head off any Congressional action in this area.
The IRRC press release informs us that:
According to ICCR member Sr. Nora Nash of the Sisters of St. Francis of Philadelphia, “Resource extraction is changing our lives and our landscapes and nobody knows for certain what the long-term cumulative effects might be. Companies that are voluntarily disclosing are showing leadership. The SEC’s intervention to establish improved reporting parameters for the industry as a whole is necessary to protect investors.”
As I read that, I can't help but wonder whether Sr Nash is really worried about the value of her investments or whether she's really using it as cover for opposition to fracking. In other words, are her efforts at financial disclosure intended to lead, for example, to some sort of naming and shaming attack on companies trying to use fracking to free us from our dependence on foreign oil and gas sources? I must confess to having my doubts about these folks' motives....and the SEC's.
