Chesapeake has pledged to invest $1 billion to increase the use of natural gas in transportation. Partnering with 3M and General Electric proves beneficial as they create a nationwide network of truck stops to develop home fueling kits.
In a recent federal filing, Chesapeake said that one of its business strategies is to “transform the U.S. transportation fuels market.”
Chesapeake recently announced three deals to raise $2.6 billion, selling parts of holdings in Oklahoma and West Texas. For the full year, Chesapeake hopes to raise up to $12 billion from similar sales so it can plow more money into high-priced oil.
Just last week, natural gas prices fell as low as $1.91 per 1,000 cubic feet due to the lack of supply.
Chesapeake stands to benefit greatly if more vehicles convert to natural gas. “We can guarantee a natural gas demand revolution is on the way, because we are making it happen!” the company wrote in an investor presentation this month. This holds to be true – just 4 years ago, Chesapeake announced plans to convert its 4,500 vehicles to natural gas. The company has already converted 1,400 trucks and expects to convert 500 to 1,000 more this year.
“If we didn’t drive with natural gas, that would be like dairy farmers not drinking milk,” said Taylor Shinn, Chesapeake’s senior director of corporate development.
Chesapeake is also working with trucking companies who want to cut the price of a home fueling station to $1,500.
With many changes along the way, Chesapeake is proving itself as one of the industry leaders.