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Chesapeake Energy Plans Drastic Cuts (Jan 23, 2012)

NEW YORK (AP) - Oklahoma City-based Chesapeake Energy Corp. says it will drastically cut drilling and production of fuel in the U.S. after being faced with decade-low natural gas prices that have made some drilling operations unprofitable. Chesapeake, the nation's second largest natural gas producer, said Monday that its planned 8 percent production cut means the U.S. as a whole would produce the same or slightly less natural gas in 2012 than it did in 2011. That's a change from the dramatic increase in output of recent years. Chesapeake, which produces about 9 percent of the nation's natural gas, and other drillers been tapping enormous reserves of natural gas trapped in shale formations under several states. A sharp rise in supplies has combined with mild winter weather to drive the price to its lowest level since 2002.


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