Chesapeake Energy Corp. files for Chapter 11 bankruptcy
Monday, June 29, 2020
Low oil and gas prices amid the coronavirus pandemic proved to be the final blow for Chesapeake Energy Corp. as it filed for chapter 11 bankruptcy over the weekend, according to The Wall Street Journal.
Although Chesapeake is the latest debt-laden oil and gas company to file for bankruptcy, it may not be the last. According to The Wall Street Journal, more than 200 shale companies could file for bankruptcy in the next two years if oil and gas prices stay around current levels.
Filing for protection with more than three dozen affiliated companies, Chesapeake listed assets of $16.2 billion and liabilities of $11.8 billion in its petition with the U.S. Bankruptcy Court in Houston.
Learn more: Wall Street Journal > Pioneer in shale industry files for Chapter 11
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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.