Gas production looks a little thin for the third quarter with 18 companies (22% of total U.S. production) so far reporting volumes (8,865 MMcf/d) down 0.3% from the second quarter and 7.3% from year-ago levels, according to statistics compiled by Thomas Driscoll of Lehman Brothers.

Driscoll said he expects total third quarter production to be down 1.6-2% from the second quarter and 5.5-6.2% from 3Q2001. He expects full-year 2002 production will be down 5-6%.

The biggest production declines compared to last year were reported by Unocal (-24%), Amerada Hess (-23%), Apache (-20%), National Fuel Gas (-20%) and Cabot Oil and Gas (-15%), while the largest declines from the second quarter were posted by Hess (-16%), Unocal (-7%) and Cabot (-6%). The biggest gains year to year were posted by XTO Energy (26%), Houston Exploration (14%) and Pogo Producing (11%), while gains were made from the second quarter by Ocean Energy (11%), XTO (7%) and Dominion (5%).

Driscoll estimates 3Q Canadian gas production fell 2.1% from the second quarter and 2.5% from the third quarter of last year. He expects Canadian production to end the year down 1-2% compared to a 6% increase in 2001.

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