Monday, January 23, 2012
Chesapeake Energy shifts focus toward oil, natural-gas liquids
OKLAHOMA CITY
Chesapeake Energy Corp. said Monday it is shifting its focus away from natural gas and toward oil and natural-gas liquids like propane.
The move is expected to expand Chesapeake’s investment in the Utica Shale, which is believed to be rich in both natural gas and oil.
The move comes in response to the lowest natural gas prices in the past 10 years, said the company, which added that in 2012 it will use one-third the number of dry gas rigs it did last year.
“We have committed to cut our dry gas drilling to bare minimum levels that are likely to be maintained until expected drilling economics on dry gas plays return to levels competitive with expected returns in Chesapeake’s lineup of liquids-rich plays, which we believe is the best in the industry,” said Aubrey McClendon, Chesapeake’s CEO, in a statement.
Chesapeake said that 85 percent of its 2012 total drilling expenditures will be invested in its liquids-rich plays.
Read more in Tuesday’s Vindicator and at Vindy.com.