Chesapeake CEO says natural gas industry needs to slow down output
Thursday, January 19, 2023
Just hours after a significant deal to unload some South Texas shale assets, Chesapeake Energy Corp. Chief Executive Officer Nick Dell’Osso urged his U.S. natural gas industry peers to slow down output due to low prices, according to Yahoo News.
Dell’Osso shared his concerns during an interview on Wednesday, following Chesapeake’s agreement to sell $1.43 billion in South Texas shale assets to WildFire Energy. The move is intended to bolster the company’s focus on producing natural gas in the Haynesville and Marcellus shale fields.
Rapidly increasing production, slower-growing domestic demand and the shutdown of a key fuel-export complex on the Texas coast after a June explosion have all contributed to a 23% decrease in benchmark U.S. gas prices.
Learn more: Yahoo News > Chesapeake CEO Urges Slowdown in Natural Gas Output After Price Plunge
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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.