Wait for the change, we are experimenting and reaching out. We also know that our brands are really, really powerful. They can live in the traditional sense but also in the nontraditional sense in different ways. We have branded educational experiences with different learning, we have international brands. It is a whole ecosystem that is going to have to support the economic evolution of our business. Peter you worked with barry. Is he about as sanguine as you are about leaving . Kerry you can see more services under more sound legal footing from the get go, but the Consumer Experience is about multi device, multiformat multibusiness model, we have all seen videos of that today and it is an undeniable fact. Peter it is all great for me as a consumer, but challenging for both of you. Kerry but that is true of every change about the disruption of social media, the suit the consumer had to run in advance nancy it is great to be trying these new things. Peter as a music refugee, the pace at which the Video Industry has been embracing and experimenting with these things, i think it is going to be a lot more interesting. Peter things might be rough but they are not as bad as the Music Industry . Nancy, kerry, thank you so much. [applause] announcer next, a discussion on the method of Oil Extraction hydraulic cracking. The conduct of members of the secret service. After that, q and eight with canadian astronaut. Tomorrow, Human Rights Watch presents a new report on retaliation against victims of Sexual Assault in the military. That is live on cspan2 at 10 00 a. M. Eastern time. The new congressional directory is a handy guide to the 114th congress with color photos of every senator and house member plus bio and Contact Information and twitter handles. Also, district maps. A foldout map of capitol hill. And a look at congressional committees, the president s cabinet, federal agencies, and state government. Order your copy today. It is 13. 95 plus shipping and handling. The cspan online store. As hes been. Org. On monday, the Atlantic Council hosted a discussion on u. S. Natural Gas Production and hydraulic fracturing activities known as fracking. They also assessed the impact of low oil prices. And the prospect of Natural Gas Drilling around the world. This is about an hour and 25 minutes. Director morningstar i wish you all a good afternoon and welcome to the Atlantic Council. I am dick morningstar, the founding director of the center. I am also glad to see the chairman of our Advisory Group and our moderator today, cynthia quarterman. So, we are very pleased to see you all here today. And todays discussion will focus on how Energy Prices politics, geology, and Environmental Concerns have affected and continue to affect fracking in the United States and the potential for fracking to succeed in other places like europe, mexico, argentina, china, and other places. We do have an outstanding panel of experts today to discuss these important issues. The discussion will be moderated by one of our own very distinguished senior fellows who, again, who david brought cynthia quarterman. Cynthia most recently served this is always a tongue twister for me for some reason most recently served as the administrator of the u. S. Department of transportations pipeline and Hazardous Materials safety administration. And cynthia has been a key policymaker in Energy Development safety and transportation since the beginning of the Clinton Administration and we are pleased to have her knowledge and expertise here at the Atlantic Council. And todays expert panelists i think biographies were available outside, right . Yeah. So, you have the biographies. I will briefly introduce our panelists to include subash chandra, managing director and senior Equity Analyst at guggenheim partners. Mr. Chandra had the foresight to recognize frackings huge potential early on and at one point advised 90 of the Companies Involved in the industry. I guess i could ask how Many Companies were involved in the industry at that time, but i wont. One in 7 8 out of two of them. And dr. Terry engelder, who is a professor of geosciences at penn state and a geologist who originally estimated the potential gas reserves in pennsylvania, which first set off the shale boom. He has also taught at texas a and m. He has a whole host of credentials that you can see in his biography. And finally, we have russell gold, who is a Senior Energy reporter at the wall street journal, who has been reporting on fracking since day one. He recently published a book specifically on this topic and it is titled the boom how fracking ignited the American Energy revolution and changed the world. And for the audience and those watching the live webcast, you may also contribute to the conversation on twitter by utilizing acenergy. And so, help me extend a warm welcome to cynthia and all of our panelists. Cynthia will say a few words and then we will begin the panel discussion. Thank you. [applause] ms. Quarterman i want to say thank you for being here this afternoon. I think this will be an interesting panel. We just came from lunch where we had lots of interesting conversation about what is happening with respect to fracking in the United States. These gentlemen also have an International Perspective and we are going to push them to answer some of that. I am going to start right out with dr. Engelder, who is known at least in pennsylvania as the father of fracking because of his work figuring out how much gas there was in the marcellus shale. Dr. Engelder was also in 2011 noted as one of the top thinkers in the Foreign Policy magazine on this issue. Why dont you tell us how you got into this, terry . Dr. Engelder thank you, cynthia. Let me point out i am always embarrassed with this title, the father of fracking in pennsylvania. I have a written statement i would like to put forward as a disclaimer. Before that, whenever making an appearance i always pass around a notebook in which i have the audience enter their name, alma mater, or affiliation. I will just pass this down. This is the disclaimer. I will read it, although i dislike read text, but in this case it is so important i will disclaim it by reading. Anyway it is flattering to have people think i might be the father of fracking, but it is a title that i dont deserve. In reality, i am a very small gear in a very large motor, the motor that supplies energy to the human economy. My research on shale gas, of 40 years culminated in reserves calculations, for the Worlds Largest unconventional field the appalachian basin in 2008. This research garnered International Attention following a 2007 press release from range resources, the Company Responsible for pioneering the discovery wells in the marcellus shale. I asked their head of Public Affairs to write a statement concerning what i actually did and his statement was my work had a level of independent credibility that was lacking or understated at the time. Bearing in mind this was late 2007, before the boom russell gold is going to talk about. For prospective, industry suggest the volume of technically recoverable gas distributed through several layers in the appalachian basin, including marsalis and the utica is comparable in size to the northfield, which is the Worlds Largest conventional gas field. To me, uncle sam is the father of fracking, under the leadership of president jimmy under the leadership of president jimmy carter, the Energy Administration started the egsp project. It provided funds to a number of scientists in government industry, and academia for the explicit purpose of discovering how to tap the vast reserves of north american gas shale. Bear in mind, carter was president in the 1970s, so this has been going on for a long time. I would suggest, cynthia, to you and others, a government scientist who might be called the father of fracking is al yost of the International Energy technology company. There are several industry folks who might also deserve this title, the father of fracking. This would include ken nulty of amoco, and then of course there is George Mitchell, whose Company Mitchell energy was the first to do fracking in the 1990s and another who was the first to put a massive hydraulic fracture all of these are deserving. Academic types include my colleague from stanford and engineer steve olditch of texas a m. While it is not fair to include me in the list of potential candidates, you did ask me to explain myself, is that right . Ok. I was blessed by funds from uncle sam back in the 1970s. This was the same time George Mitchell was experimenting with gas shale in ohio, using government funds. From the eastern gas shales project. Then later, egsp funding to understand the state of stress of gas shale in the appalachian basin. That was a great experiment in the 1980s. I was a small part of shells venture, which was one of the first attempts of producing gas from the standard shale as we know it today. At penn state, i had graduate students this is very important. It was not the faculty members but the students. All of the students contributed significantly to our present understanding of gas and oil shale. We came to understand which natural fractures were driven by highpressure gas. We came to understand the rate of fracture grows, the timing of fracture growth, the distribution of fracture growth. All of these are important elements that make commercial Gas Production possible. And finally, and most importantly, none of these are the discoveries of one person. Ms. Quarterman thank you. I stand corrected on that. I understand also this and there is a woman involved, the geologists as well in the olden days . Dr. Engelder as a matter of fact, there were two or three names. Interestingly enough, when the new york state survey before it was called the survey decided to understand the Mineral Industries of new york state this would have been 1843. A geologist was responsible for that. He had just gotten married. I suppose his wife was looking for a honeymoon to go to europe, but rather, he said you are coming with me to map in western new york. Now she was a good artist and on her honeymoon, she drew pictures of these fractures and gas shales that remain seminal. It was later done by a cornell graduate student that still remain some of the seminal work in understanding fractures and gas shales, that allow you guys to do whatever you do. Ms. Quarterman thanks. Mr. Chandra, i understand how did you get involved in fracking . Mr. Chandra yes, my background is in securities and as were talking at lunch, we coincided when the gulf shale was done. That is when i got in the industry, when the gulf of mexico shale was where the hot ipos came from. That ended and one of the First Companies i found thereafter was Mitchell Energy, as referenced by terry. We kind of got tired of the gamblers ruin, and we saw some companies do very well and get bought out. Some companies absolutely disappeared. When i saw a Mitchell Energy here was a nonshort Company Growing sustainably every year vertical, not horizontal so i was very excited about that. But it was also a curse in another way. After seeing george and his company in the very early stage of the horizontal application of fracking, they sort of implied to me this would not work outside of their agency. I was too young to realize every company says that. [laughter] mr. Chandra so, i went for some time going, guys, this is just not going to work. And this cost me a couple of very, very good companies. And ideas along the way. 2005, as we were talking what was interesting, the fayetteville shale, the barnett was supposed to have unique characteristics that could not be replicated. As it happened in fayetteville they drilled two wells and those could not be replicated. What was exciting and got me involved with terry, appalachia as a landmass was multitude bigger than the fayetteville or the barnett, and today, for very different reasons, it has a very unique position in the u. S. As an exporter of gas and oil products, as a net exporter. Its a very exciting place to be. So, i went to the father of fracking ms. Quarterman he needs a new title. Mr. Chandra i believe it was Chesapeake Energy that bought a new position there. But it was tectonic lead different. Everything about it was different than the other planes. That is when i found terry and terry introduced me to a lot of work that i still cannot pronounce or understand. What was amazing, there was no book you could read. And the education now is very much real time. The primer is so historical. There is so little i know, every passing day. Yet, i feel that i know a lot since we had our chat. I met terry and terry really helped us. And terry with his pennsylvania experience, and also ohio and increasingly it will be west virginia. And the techniques they are using to exploit the rock are absolutely violent. You have wells that are capable of doing these astronomical rate in the gulf of mexico where things that could not happen are being experienced at a single well, per well in places like ohio, west virginia, and pennsylvania. Ms. Quarterman you said the primer had not been written . A great introduction for mr. Gold and his book. I understand this may be a little bit personal for you as well. For me, it is great to be on the end of asking you questions. Mr. Gold right. I will definitely get into the personal in a minute. My story is an example of how it is better to be lucky than smart. I was at the wall street journal looking for a beat. I joined the energy team coming up or any particularly good reason other than i was in texas and wanted to stay there. They assigned me to the smallest companies. These were companies that very few investors were really interested in, because everybody knew there was not much boiling oil and gas left in the United States. We were depleted and were importing. There was not that much money to be made. So, lets give it to the new guy. So, i start meeting with companies and one of the companies talks about the new drilling they are doing in around fort worth. I went to my first fracking job in 2003. We did not even call it a frack job back then. It was unconventional gas. I got in on it very early on just listening to companies talk about how they found a new way to drill lots of wells and get lots of gas. For several years, that is what i did. I covered and wrote about the companies, and what i saw something very significant in the United States, and then one day, i got a call from my parents. My mother, specifically. They are philadelphians, but they have 100 acres in northcentral pennsylvania. A place to get away on the weekend. She said to me, we got a strange call from a Company Called chesapeake. They want to inquire about leasing my land. That caught me by surprise. I should have known about this. At the time there was a little drilling going on. But this was clear across a pennsylvania. So, i had to go back and start learning about why chesapeake was leasing so far across pennsylvania, and i did. And that really got me onto the second stage of learning about fracking, what was going on, and it really brought me into these questions of, should we be doing this . Because thats the question my mother asked me. Should we sign release . And how can you get the benefit of all of this oil and gas and minimize the risk and inconvenience, the downsides to it . These are very important questions. I will posit that i do not think those questions happen answered in the United States yet. I think we are still grappling with it in texas and texas is about to pass a law looking at that very issue. Who should be regulating it . The states or the cities . Thats important, because one of the questions i know were going to get to is, why hasnt shale taken off outside the United States question mark its transformative in the United States and county, but outside the United States, it really has barely started. I think the answer is, as much as the United States has struggled with these questions we had one thing going for us. We had incentive. Americans and the United States, we own our own mineral rights. When chesapeake wants to come in drill 100 acres of land, they will make an offer and they will make an offer that is sweet enough, hopefully, to overcome the inconvenience of having trucks driving all across your property for the next few months. Outside the United States, that is not the case. As much as we are struggling in the United States with how to balance these questions, i think outside the United States is even more difficult because that has not been fully addressed. By a large the gov