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for a new energy future with greater natural gas usage and increased
domestic oil production as two of its primary attributes, it is encouraging
to see our political leadership finally grasp that natural gas stands alone
as the only affordable, scalable and immediately available alternative to
foreign oil and that U.S. oil production can be increased significantly in
the years ahead.
The events of the past few months have unmistakably driven home
the fact that it is insanity to rely on the Middle East to provide our economy’s
lifeline of oil. This should be especially obvious when one realizes
that during the next 10 years, America will likely export at least another
$4 trillion in national wealth to oil exporters around the world. Clearly,
our country must demand from its leaders a new and more sustainable
energy future.
Advancing technology for cleaner operations: solar panels at a West Texas well power
telemetry systems that provide pumpers with real-time information on oil and water
tank levels to alarm them when levels near capacity, preventing tank spills.
The good news, however, is that America can now secure a new
energy future thanks to Chesapeake and a handful of other leading U.S.
E&P companies that have reinvented the process of finding natural gas
and oil during the past five years. In doing so, we have discovered twice
the resources of natural gas in the U.S. that Saudi Arabia possesses in oil.
Furthermore, these same few companies that led the unconventional
natural gas revolution have in just the past two years also reinvented
the way in which we can find large new oil resources onshore in the U.S.
In fact, I believe the U.S. can possibly increase its production of oil from
the current 5.8 million barrels per day by 30–50% during the next 5–10
years, thereby potentially reaching the President’s 2025 goal of reducing
foreign oil imports by 33%, 5–10 years earlier than hoped.
The combination of these vast new discoveries of unconventional
natural gas and liquids provides America with a unique future pathway
toward greater energy independence, an industrial renaissance,
economic rejuvenation and greater national security. I remain fully confident
that the marketplace understands this and that over time the U.S.
will more fully embrace and utilize clean, affordable, abundant American
natural gas and increased domestic oil production as the best alternatives
to burning environmentally challenged coal and expensive and
dangerous foreign oil.
There is now a clear road ahead toward a more sustainable, affordable,
dynamic and independent future if America embraces the remarkable
gift of energy abundance that Chesapeake has helped discover in
the U.S. You have my commitment, and the commitment of more than
The combination of these vast new discoveries
of unconventional natural gas and liquids
provides America with a unique future pathway
toward greater energy independence,
an industrial renaissance, economic rejuvenation
and greater national security.
10,000 other Chesapeake employees, that every day we are working
hard to create shareholder value and a better future for our communities,
our states and our country through the continued discovery and
development of unconventional natural gas and liquids.
Best regards,
Aubrey K. McClendon
Chairman and Chief Executive Officer
April 15, 2011
2010 ANNUAL REPORT | 15