Bloomberg News today reported that Chesapeake Energy Corp., America's No. 2 producer of natural gas, expects natural prices to rebound as producers reduce drilling and the weather normalizes.
"$2 gas prices are not sustainable," said Mike Stice, chief executive officer of Chesapeake Midstream Partners, in an interview in Amsterdam.
"Prices will rebound. You'll see a supply impact from these low gas prices. We had a perfect storm in terms of production and warm temperatures; it can't be repeated," he said.
Drilling is being sustained beyond what it economic by terms that mean leases are extended if they are productive, he said.
Foreign investors are also drilling to delineate the size of the gas reserves that added to the glut, he said.
Storage levels will not be this high at the same time next year, he said.
Oklahoma-based Chesapeake is the No. 1 player in Ohio's Utica shale.
Chesapeake Energy Corp,the Oklahoma-based firm is the No. 1 driller in Ohio.
Rig Count Interactive Map by Baker Hughes, an energy services company.
Shale Sheet Fracking, a Youngstown Vindicator blog.
The Ohio Environmental Council, a statewide eco-group based in Columbus.
Earthjustice, a national eco-group.
People's Oil and Gas Collaborative-Ohio, a grass-roots group in Northeast Ohio.
Concerned Citizens of Medina County, a grass-roots group.
No Frack Ohio, a Columbus-based grass-roots group.
Fracking: Gas Drilling's Environmental Threat by ProPublica, an online journalism site.
Pipeline, blog from Pittsburgh Post-Gazette on Marcellus shale drilling.
Allegheny Front, environmental public radio for Western Pennsylvania.