Chesapeake Gives Up on Oil in OH Utica Shale, Focuses on NGLs
A big reversal from Chesapeake Energy and their expectations for oil in Ohio’s Utica Shale. Once upon a time the company was ebullient over striking oil in eastern Ohio (see this MDN story, July 2011).
An article in yesterday’s Wall Street Journal quotes Chesapeake CEO Aubrey McClendon as saying their view has changed—the Utica Shale will not be a big oil producer for Chesapeake after all. That doesn’t mean Chesapeake has turned sour on the Utica—quite the contrary. Drilling for natural gas liquids in the Utica by Chesapeake continues at a brisk pace. All the same, McClendon’s statement is a stunning admission and a reversal from previous statements.