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Chesapeake tries to pump up demand

Chesapeake tries to pump up demand
Posted Saturday, Apr. 14, 2012

For more than 20 years, Chesapeake Energy has been a leader in driving up the supply of natural gas. Now it's trying to spark the demand side of the equation -- a reach for any player.

In the next decade, the Oklahoma City company has pledged to invest $1 billion to increase the use of natural gas in transportation. Efforts range from creating a nationwide network of truck stops to developing home fueling kits that let people fill up in their garage. And partners include 3M and General Electric, two global heavyweights whose involvement signals the potential of this market.

The country is awash in cheap natural gas, thanks to the success of Chesapeake and others in developing shale gas nationwide, including in North Texas' Barnett Shale. Chesapeake is the second-largest producer here and has a regional office in Fort Worth.

Last week, natural gas prices fell as low as $1.91 per 1,000 cubic feet, the lowest since 1999, because of the supply glut. Nationwide, production is running 5 percent ahead of last year's pace, and after a mild winter, underground stores of natural gas are 58 percent greater than the average for the past five years.

Naturally, the gas industry wants to drive up demand, whether from power plants, industrial uses, exports or transportation. Chesapeake stands apart, because it's leading the effort in such a high-profile way.

In a recent federal filing, Chesapeake said that one of its business strategies is to "transform the U.S. transportation fuels market."

That's usually the kind of goal set by a nation, not a single company. But Chesapeake and its leader, Aubrey McClendon, have always been ambitious and audacious. Today, they have reason to feel a little desperate, too... FULL ARTICLE

1 comment (Add your own)

1. Dell wrote:
So much info in so few words. Tostloy could learn a lot.

Sat, July 7, 2012 @ 3:03 PM

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