Chesapeake’s ‘plan’ to survive low gas prices

Natural gas-to-liquids is only part of Chesapeake CEO Aubrey McClendon’s plan to weather low gas prices.

MSN Money reports,

Chesapeake is the second-largest producer of natural gas in the United States after ExxonMobil. Thanks to an aggressive land campaign over the last five years, the company boasts the largest inventory of natural-gas shale play leaseholds in the country (2.5 million net acres).

With gas prices forecast to remain in the doldrums for the short- to medium-term, Chesapeake has launched a two-pronged strategy to tackle the low margin environment. While investing heavily on projects intended to stimulate domestic natural gas demand, the company has also been moving rapidly to increase higher-margin liquids production. [Emphasis added]

FYI, those “projects intended to stimulate domestic natural gas demand” include McClendon’s funding of radical green groups to attack the coal industry as we have pointed out in:

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