Chesapeake Stalls Slide in Gas Prices With Cutbacks in Drilling
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Chesapeake Energy Corp., the second-biggest natural-gas producer in the U.S., accelerated an industry effort to cut back drilling to try to stop a price decline that saw gas slide to a 10-year low last week.
Gas prices, as well as producers’ shares, surged as much as 10 percent after the move by Oklahoma City-based Chesapeake, which accounts for 9 percent of U.S. gas output. The company’s plan to idle 24 natural-gas rigs by the second quarter is a 69 percent reduction from 2011.