PENNSYLVANIA — Two gas companies, Chesapeake Appalachia and Range Resources, have announced a cut back on parts of their operation in Pennsylvania.
Chesapeake Appalachia has sent letters out to Northeast Pennsylvania landowners that it has revoked and rescinded offers to obtain more leases. The company said that the action was due to regulatory issues and to the current economic downturn.
Chesapeake Appalachia’s parent company, Chesapeake Energy Corporation, announced plans in its third-quarter financial report to reduce its drilling capital expenditure budget during the second half of 2008 through year end 2010 by approximately $3.2 billion, or 17 percent, in response to an approximate 50 percent decrease in natural gas prices since June 30. The company’s CEO, Aubrey McClendon, said he is concerned about the possibility of an emerging U.S. natural gas surplus in advance of increased demand from the U.S. transportation sector.
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