Chesapeake emerges from bankruptcy, focuses on natural gas
Friday, February 12, 2021
Chesapeake Energy emerged from Chapter 11 bankruptcy proceedings in leaner shape and with a new strategic focus to turn its attention to natural gas, according to Forbes.
The company’s exit from bankruptcy comes amid renewed optimism about the future prospects for natural gas, both in terms of price and usage around the world.
Chesapeake CEO Doug Lawler said he plans to take advantage of the market by focusing about 85% of the company’s capital this year on drilling in the Marcellus Shale in Pennsylvania and the Haynesville Shale in Louisiana, allowing the company’s oil output to decline.
Learn more: Forbes > Chesapeake Energy Emerges From Bankruptcy, With A Return To Its Roots In Natural Gas
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Shale FAQ
What is fracking?
Fracking is a slang term for hydraulic fracturing. Fracturing is a process by which highly pressurized fluid is pumped thousands of feet into the ground to fracture rock formations. The goal is to release the natural gas that’s locked inside the rock.
Is it safe?
What most concerns people about fracturing is ground water contamination. The worry is that fractures underground, caused by the process, will extending upwards and into aquifers, releasing gas and chemicals into the ground water supply. There’s been no confirmed reports of such a thing happening. Though surface spills and drill site blowouts can lead to localized environmental concerns.
Will my water catch on fire?
Flammable water is caused by the release of methane gas into a drinking water supply. Methane gas occurs naturally and can be released by any kind of drilling, including water wells. In Pennsylvania officials fined Chesapeake Energy $1 million for contaminating ground water with methane. It was determined that the company had not properly cemented it’s boreholes and gas migrated up the well, between rock and into aquifers.