With natural gas prices remaining stubbornly low due to continued high supply and a warmer than expected winter, Total announced that it would be putting the brakes on its North American natural gas production. The natural gas deals the company made were planned for $6 gas, and the economics don't make sense at its current prices. Because of Total's joint ventures in natural gas with Chesapeake Energy , Chesapeake took a hit yesterday. In this video, Motley Fool energy analyst Joel South tells us what trends he expects from natural gas prices in 2013, and where that leaves Chesapeake.
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The article Total Softening North American Gas Production originally appeared on Fool.com.
Joel South has no position in any stocks mentioned. Taylor Muckerman has no position in any stocks mentioned. The Motley Fool recommends Total SA. (ADR). The Motley Fool has the following options: Long Jan 2014 $20 Calls on Chesapeake Energy, Long Jan 2014 $30 Calls on Chesapeake Energy, and Short Jan 2014 $15 Puts on Chesapeake Energy. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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