Chesapeake Energy Corp. CEO Aubrey McClendon says the company is aggressively moving into oil and natural gas liquids as part of a plan developed two years ago.
During a conference call Wednesday, McClendon says the decision to reduce Chesapeake’s natural gas drilling and focus on increasing its oil production is the company’s “single largest strategy shift” ever.
Even with the recent strategy change, natural gas still accounts for 90 percent of Chesapeake’s total production. But the company now says it expects to increase its liquids production to about 25 percent of total production by the end of 2015.
McClendon thinks oil prices will outperform natural gas prices “for a long time to come.” He says Chesapeake began acquiring leaseholds for its move into oil two years ago but that the results of those efforts only now are becoming evident.
(Copyright 2010 by The Associated Press. All Rights Reserved.)