The production of natural gas from shale formations now accounts for more than 34% of all natural gas production in the United States and has assumed a prominent role in this country's energy and economic future. This newfound prominence, however, has prompted questions from some quarters about whether the promises of shale gas and shale oil are too good to be true. The Securities and Exchange Commission and other regulators have begun scrutinizing shale companies' production forecasts and reported costs and margins for shale gas wells in the wake of media reports claiming that companies are overstating their reserves and understating their costs. Regulators and private litigants are also probing the environmental impact of shale production,...

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