Encana Plans to Reduce Natural-Gas Output, Spending in 2012
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Encana Corp., Canada’s biggest natural-gas producer, will scale back investment and cut output to reduce North American supplies by as much as 600 million cubic feet a day in a bid to boost prices for the heating and power-plant fuel.
The company will immediately halt 250 million cubic feet a day from wells, Chief Executive Officer Randy Eresman said in a statement today. Spending for 2012 will drop about 37 percent to $2.9 billion, reducing output by another 250 million cubic feet a day from last year. The remaining cut is in the form of gas used as royalties, the Calgary-based company said.