Chesapeake Energy Planning To Cut Back

Monday, December 8th 2008, 9:57 pm
By: News On 6

News On 6

OKLAHOMA CITY, OK -- An Oklahoma energy giant unveils its strategy to ride out the recession.  Chesapeake Energy will cut back on spending and shut down dozens of drilling rigs.

Chesapeake is America's second-largest independent natural gas producer, and is looking to stockpile cash, in case fuel prices dive even further.

"They were worried about cash liquidity. Right now, that's been hammered into us with the financial institutions and all the major businesses," said economic professor Ron Shaw.

Economists say layoffs could be looming as Chesapeake cuts costs, but the company's CEO denies plans to eliminate jobs.