Chesapeake's Nat Gas Focus to Pop Stock
Chesapeake had decided to focus much of their efforts on natural gas this year. They have strong holdings in the shale plays and are utilizing natural gas in a very smart way. With natural gas prices starting to look promising, Chesapeake’s utilization of it could really pay off. The Trefis Team is predicting CHK to reach $36, and here is why.
" Chesapeake Explores Alternatives to Power Rigs
Most of the drilling rigs owned by oil and gas producers are powered by diesel since access to electricity is expensive and at times impossible if the rigs are located in remote areas. Chesapeake is looking at natural gas as a potential energy source to fuel its rigs to counter rising fuel costs. In one such project, the company has found an innovative method to significantly increase the life of the standard lead-acid batteries. (SeeChesapeake Adding Natural Gas and Alternatives to Power Rigs)
Investments in New Technologies
Chesapeake is planning to invest $1 billion over the next decade in technologies that will spur demand for natural gas. The company currently has 6 major shale plays – Barnett, Haynesville, Bossier, Fayetteville, Marcellus, and the Eagle Ford. It plans to increase domestic onshore oil and natural gas liquids production by up to 50% with greater use of horizontal drilling and hydraulic fracturing.  This should give a significant boost to Chesapeake’s natural gas production volume as well as prices. As part of the $1 billion investment, Chesapeake is investing $305 million in two companies: one plans to build liquefied natural gas fueling stations at truck stops, and another plans to build a refinery to produce fuel from farm crop."
Find additional information here: http://turnkeyoil.com/2011/07/31/chesapeakes-nat-gas-focus-to-pop-stock/