Chesapeake May Let Oilfield Services Division Go
Monday, February 24, 2014
OKLAHOMA CITY– Chesapeake Energy Corporation announced that it is pursuing strategic alternatives for its oilfield services division, including a potential spin-off to Chesapeake shareholders or an outright sale.
Chesapeake Oilfield Services, COS’ operations are currently conducted through Chesapeake’s wholly owned subsidiary, Chesapeake Oilfield Operating. Its service offerings include drilling, hydraulic fracturing, oilfield rentals, rig relocation, and fluid handling and disposal.
Chesapeake Oilfield Services
As of December 31, 2013, COS owned or leased 115 land drilling rigs, nine hydraulic fracturing fleets, a diversified oilfield rentals business, an oilfield trucking fleet consisting of 260 rig relocation trucks, 67 cranes and forklifts used to move drilling rigs and other heavy equipment; and 246 fluid hauling trucks.
In addition to services performed for Chesapeake, approximately 35 percent of COS’ drilling rigs are currently working for third-party operators, and COS intends to grow its third-party customer base as an independent provider of oilfield services.
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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.