Faced with decade-low natural gas prices that have made some drilling operations unprofitable, Chesapeake Energy Corp. says it will drastically cut drilling and production of the fuel in the U.S.Some suggest this may free up some workers.
Drillers had already begun to shift their drilling activity toward shale formations and other regions that produce oil and other liquid hydrocarbons. Strong global demand has kept oil prices high and made these drilling operations extraordinarily profitable.
Chesapeake said it would cut its current activity in so-called dry-gas regions by half, to 24 rigs, by the second quarter. That's 67 percent fewer rigs than an average of 75 rigs the company had in use last year.
I wonder if this could free up some frack spreads. If so, North Dakota could benefit. I would assume fracking shallower natural gas wells is different than fracking deep oil wells in the Bakken, but I suspect the skills are transferable. The equipment would be different.
