In Securities and Exchange Commission 10-K filings this week, one top U.S.-based major, ChevronTexaco, is forecasting declining domestic production this year, while the second, Marathon Oil Corp., continues to ramp up its numbers. Both expect to see strong gains internationally.

The decline in U.S. equivalent oil production at ChevronTexaco would follow the trend of the last five years, the company said. This year, it anticipates lower U.S. production because of normal field declines, the effect of asset sales and “opportunity limitations.” Last year, ChevronTexaco’s U.S. production was 89% of 1999 levels.

The major’s additions to its proved reserves of worldwide boe barrels exceeded production last year, with a replacement rate of 108%, including sales and acquisitions.

“The ultimate level of worldwide production in 2004 remains uncertain due to the potential for constraints imposed by the Organization of Petroleum Exporting Countries (OPEC), and disruptions caused by weather, local civil unrest and other economic factors,” ChevronTexaco noted in its filing.

Houston-based Marathon is forecasting average annual production will grow more than 3% through 2008, with some of its gains coming from coalbed methane (CBM) production in the Powder River Basin. It now expects average 2004 production of about 365,000 boe/d, excluding acquisitions and sales. In 2005, however, average production will likely be “relatively flat” compared with 2004. Significant production then will pick up in 2006, Marathon wrote.

Some of Marathon’s growth is expected to come from Russia. It also is planning to drill nearly 400 CBM wells in the Powder River Basin this year.

Also beginning with its 1Q2004 reports, Marathon plans to realign its financial reporting. It will introduce an integrated natural gas segment , which will be reported along with exploration and production and refining, marketing and transportation, and will eliminate the “other energy related businesses” segment. The new segment will include liquefied natural gas facilities, midstream gas plants and pipelines, non-equity natural gas marketing and other integrated gas activities.

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