Chesapeake Energy: Industry Can Cope, Not Grow with $4 Nat Gas
Natural gas prices, still sitting below $4 per million British thermal units, have produced an interesting combination of cautious hope for the future and we-can-cope-with-this-for now attitude. As BNET noted in a post earlier this week, Chesapeake Energy CEO Aubrey McClendon told analysts on its August earnings call he expected natural gas prices would rise between $6 and $8 per thousand MMBtus by summer 2010. McClendon struck a more cautious tone Wednesday at the IHS Herold energy conference, according to Reuters. “The industry can cope with $4 gas. The industry can’t grow or sustain production with $4 gas,” said McClendon during the conference. So, where do prices need to be? Three times the finding costs, which translates to $6 to $9…
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