Chesapeake Brings Japanese “Just in Time” Concept to Gas Wells

Chesapeake Energy is embarking on a unique strategy to remain ready to ramp up production at a moment's notice. It may be a strategy that others have used, but this is the first time we've read or heard about it. You've read here on MDN that a number of large Marcellus/Utica drillers are scaling back (curtailing) production and spending on new drilling in 2024 until the price of natural gas goes higher. Just yesterday, EQT announced it is scaling back production by a full billion cubic feet per day (see Boom! EQT is Curtailing 1 Bcf/d of Gas Production Effective Now). Chesapeake previously announced it would cut production by 25-28% this year (see Chesapeake Dropping 1 Rig in Marcellus as it Waits to Merge with SWN). So, with all of this scaling back, how does a company like Chessy stay nimble, and how can it rapidly scale up production when (not if!) the price for natgas goes higher once again?

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