Chesapeake’s NatGas Production Cuts Never Materialized

In January 2012, Chesapeake Energy announced they would curtail (reduce) their natural gas production by 1/2 billion cubic feet (bcf) per day. In February, they announced they would double it to 1 bcf per day (see this MDN story). Other energy companies also announced they would cut production, all in an attempt to reduce supply and boost the price of natural gas. But commodities traders were wary of those announcements, saying in essence, “We’ve heard this before,” and that real cuts in production were never forthcoming (see this MDN story). Looks like the wary traders were right.

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