Chesapeake Energy says it's cutting oil and natural gas production about 7 percent due to declining prices.
Oklahoma City-based Chesapeake announced plans Monday to cut daily gas production in March by 200 million cubic feet. Chesapeake says it's cutting oil production approximately 6,000 barrels per day as well.
If prices stay low, Chesapeake says it may slash drilling activity another 10 percent as well. Chesapeake already has reduced drilling to 110 rigs, from 158 in August.
Chesapeake is struggling with gas prices that have fallen about 70 percent since last summer, and crude prices that have fallen more than 70 percent since July.
Chesapeake announced plans to eliminate all but 40 of the 225 jobs at its Charleston regional office last week.
(Copyright 2009 by The Associated Press. All Rights Reserved.).)
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