New York, January 24 (FinanceEnquiry.com) - An increased investment in Ohio’s Utica Shale is expected as Chesapeake Energy Corp (NYSE: CHK) is planning to shift its focus from the production of natural gas to oil and natural-gas liquids, such as propane. The announcement of production cuts of natural gas coincides with its plan to increase activity in 2012 in Ohio.

Chesapeake announced its natural-gas production cuts Monday, saying that it's drilling operations have been unprofitable because of low natural gas prices that have been prevailing for a number of years. It is one of the key players in Utica Shale and has plans to drill 12,000 wells in a 10-county area of eastern Ohio.

Chesapeake, which produces about 9 percent of the country’s natural gas, is now planning to cut its daily production by 8 percent. The company's CEO said that the U.S. natural gas prices have gone below expectations and have been economically unattractive for “developing dry gas plays in the U.S., shale or otherwise,” mainly due to the mild winter season.

Along with reducing its spending on dry-gas drilling, Chesapeake will increase its focus on liquids-rich areas to the extent of about 85 percent of its 2012 drilling outlay in Utica and about 10 other shale deposits.