The causes of the global energy crisis have been exacerbated by recent events, but date back to the past 20 years, Chesapeake Energy (NASDAQ:CHK) COO Josh Viets said on Tuesday, according to Hart Energy.
A change in Investments ranging from oil and gas to renewables, combined with low levels of natural gas storage and Russia’s war in Ukraine, have created the current energy shortage, Viets reportedly told conference and expo DUG East from Hart Energy.
Last year was dry with weak winds, which led to a 30% reduction in electricity production from renewable sources and thus contributed to depleting European gas storage, Veits said.
The United States also has low storage levels, in part due to a cold winter, an already hot summer and an increase in LNG exports, according to the COO.
“The demand for natural gas is expected to be quite high and the supply should be limited,” Viets said.
Separately, Credit Suisse launched Chesapeake (CHK) with an outperform rating and a price target of $115, saying the company emerged from the restructuring with a significantly stronger balance sheet and a weaker cost structure, the unloading the main problems that plagued the inherited society.
Shares of Chesapeake (CHK) have lagged significantly behind their peers, but the company’s decisive pivot to natural gas should position it to offer shareholders above-average cash returns, Credit Suisse said.
Seeking to expand into the US LNG export market, which grew 50% last year, Chesapeake Energy (CHK) plans to hire a liquefied natural gas consultant.