A peak at some producer year-end results suggests average dailydomestic gas production could be down about 3% 1998 to 1999.

Among 20 producers, declines have been as great as 23%year-over-year at Pioneer Natural Resources, and growth has been asgreat as 39% at Ocean Energy. Ocean said overall productionincreases were primarily the result of its Seagull Energyacquisition, partially offset by property sales during 1999.Quarter-to-quarter data from 19 producers shows an average declineof 3%. While production was off, overall reserve replacement wasnot.

ExxonMobil said it replaced 106% of its overall production lastyear. Unocal did even better, replacing 159% of its net worldwideoil and gas production. “Our overall reserve replacementperformance is the best for Unocal since 1990,” said CEO Roger C.Beach. “We are successfully transitioning to a growth andreturn-oriented E&P company with a focus on bringing additionalproduction and reserves onto the books.”

Domestically, though, Unocal’s replacement figure differedsubstantially. Spirit Energy 76, the company’s Lower 48 E&Punit, replaced only 65% of 1999 production with new reserves.Spirit’s reserve performance was affected by low exploration andcapital expenditures in 1999 in response to weak oil prices, thecompany said. Last year’s reserves also do not include additionsfor deep-water Gulf discoveries.

ExxonMobil’s 106% figure excludes property sales. With salesincluded, reserve replacement was 105%. “This year’s strongperformance is the sixth year in a row that we’ve exceeded 100%replacement,” said Chairman Lee Raymond. “Over the last 20 years,we’ve added nearly 35 billion oil-equivalent barrels to provedreserves, more than replacing reserves produced.”

Atlantic Richfield Co. (Arco) said it replaced 129% of its 1999worldwide production. Texaco 1999 worldwide reserve replacement was111% “We grew Texaco’s net proved reserves to the highest levelsince 1984,” said CEO Peter I. Bijur, “extended the average life ofthose reserves and lightened our portfolio mix by increasing ourworldwide gas reserves by 25%.” Domestically, however, Texaco onlyreplaced 99% of 1999 production. “Additions to the Kern River fieldled the U.S.-based reserve replacement performance, followed bynotable additions to gas fields in the Rocky Mountain Region.Consistent with Texaco’s ongoing process of enhancing its reserveportfolio, the sale of non-strategic assets in 1999 reduced U.S.reserves by approximately 20 million Boe,” the company said.

Joe Fisher, Houston

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