• 2 minutes Oil Price Could Fall To $30 If Global Deal Not Extended
  • 5 minutes Iran downs US drone. No military response . . Just Destroy their economy. Can Senator Kerry be tried for aiding enemy ?
  • 8 minutes The Inconvenient Truth Of Electric Cars
  • 5 hours Here we go folks, the wish of so many: Pres. Trump threatens to lessen US security role in Strait of Hormuz, unveils sanctions
  • 58 mins Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 4 hours To be(lieve) or Not To be(lieve): U.S. Treasury Secretary Says U.S.-China Trade Deal Is 90% Done
  • 8 mins SHALE MAGIC: Let the oil flow: US to lead oil output growth through 2030: ConocoPhillips chief economist
  • 12 mins The Plastics Problem
  • 5 hours Looks like Trump is putting together a "Real" Coalition to protect Persian shipping lanes. Makes perfect sense. NO Fake "Coalition's of the Willing" UPDATE REUTERS Pompeo "Sentinel Program"
  • 18 hours Here We Go: New York Lawmakers Pass Aggressive Law To Fight Climate Change
  • 18 hours The Strait of Hormuz is the world’s most important oil transit chokepoint
  • 13 hours Hard To Believe: UAE Will Work To Defuse Middle East Tension
  • 34 mins On the hobby side of things
  • 8 hours Cap and trade: What could Oregon’s carbon policy cost you?
  • 20 hours Climate change & Wildfires: More Wildfires To The Western U.S., Will Affect Tens Of Millions Of People
  • 11 hours Oil Demand Needs to Halve: Equinor
Alt Text

The End Of Mexico’s Rigorous Energy Reform

Mexico’s President Lopez Obrador has…

Alt Text

China Launches World’s First Smart Oil Tanker

China unveiled the world’s first…

Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

More Info

Premium Content

Oklahoma Shale Gas Icon Indicted For Rigging Lease Auction

The former head of Chesapeake Energy has been indicted on antitrust charges by the U.S. Department of Justice.

Aubrey McClendon made a name for himself at Chesapeake Energy, turning it into the largest natural gas producer in the United States.

A federal grand jury indicted him on charges that he conspired with an unnamed company to manipulate the price of oil and gas leases in Oklahoma. The allegations describe McClendon and another company deciding ahead of time who would win a lease auction, rigging the bids to keep prices low. If Chesapeake won a lease, it would give the competing company a slice of the winnings. Related: Oil Finds Some Support As U.S. Output Falls

Chesapeake was one of the most aggressive in acquiring land during what was a land rush in the years during his tenure between 2007 and 2012. Chesapeake controlled over 16 million acres in multiple states across the country at one point. McClendon became one of the highest profile CEOs in the industry, an icon of the shale gas revolution.

“The charge that has been filed against me today is wrong and unprecedented,” Mr. McClendon said in a statement. “All my life I have worked to create jobs in Oklahoma, grow its economy, and to provide abundant and affordable energy to all Americans. I am proud of my track record in this industry, and I will fight to prove my innocence and to clear my name.” Related: A Shrewd Approach To Oil Investing

The charges carry a maximum sentence of 10 years in prison and a $1 million fine. Chesapeake itself is not expected to be hit with any charges.

McClendon left Chesapeake Energy in 2012 after shareholders revolted against his management. His aggressive expansion also left the company with low levels of cash and a high debt burden. Shareholders, including activist investor Carl Icahn ousted him. After McClendon left he setup American Energy Partners LP, a competing shale gas driller that would focus on drilling in the shale basins in Texas, Oklahoma, Pennsylvania, and Ohio.

By Charles Kennedy of Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage


Leave a comment
  • matt on March 02 2016 said:
    Yeah,
    And now he is dead.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News