Chesapeake will reduce drilling in response to lower natural gas prices
Thursday, February 23, 2023
On Wednesday, Chesapeake Energy Corp. announced plans to cut back on drilling and completing wells this year in response to lower natural gas prices, according to Reuters.
Natural gas prices have dropped to a quarter of where they sat last summer.
As a result, Chesapeake said it will drop two rigs in the Haynesville region and one rig in the Marcellus shale.
Chesapeake isn’t the only operator pulling back activity. Comstock Resources Inc. announced earlier this month that it would cut its drilling rigs from nine to seven this year.
Learn more: Reuters > Chesapeake Energy to reduce drilling amid natgas price slump
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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.