Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Chesapeake Says Natural Gas to Rebound on Production Cuts

U.S. natural-gas prices will rebound as producers reduce drilling and weather normalizes, according to Chesapeake Energy Corp.

“Two-dollar gas prices are not sustainable,” Mike Stice, chief executive officer of Chesapeake Midstream Partners, said in an interview at the Flame conference in Amsterdam. “Prices will rebound. You’ll see a supply impact from these low gas prices. We had a perfect storm in terms of production and warm temperatures. It can’t be repeated.”

Chesapeake has been switching shale production to liquids as as it seeks to survive low gas prices, Stice told delegates earlier. Shale-gas drilling is being sustained beyond what is economic by terms that mean leases are extended if they are productive, he said in the interview.

Gas futures dropped to a 10-year low of $1.94 today on the New York Mercantile Exchange. The contract has fallen 35 percent this year, the biggest drop among the 24 members of the Standard & Poor’s GSCI Index of commodities.

Foreign investors are also drilling to delineate the size of gas reserves, adding to the U.S. glut, he said.

Storage levels will not be this high at the same time next year, he said. Reserves are 59 percent above the five-year seasonal average, according to the Energy Department.

Chesapeake plans to continue focusing on opportunities in the U.S. and won’t look to exploit international resources for the foreseeable future, he said.

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.