Adjusts

Kerr-McGee Corp. last week trimmed its third quarter oil and gas production outlook after running into problems in the Gulf of Mexico. The independent, which is maintaining its full-year guidance, warned that a wildcat well offshore under development could drop quarterly earnings 15 cents if it’s dry.

Kerr-McGee Corp. on Wednesday trimmed its third quarter oil and gas production outlook but maintained its full-year guidance after running into problems in the Gulf of Mexico. The independent also warned that a wildcat well offshore still being developed could drop quarterly earnings 15 cents if it’s dry.

As it adjusts its exploration and production portfolio, Texaco,like its brethren among major producers, is turning away from theUnited States and focusing on the international arena. However, thedeep-water Gulf of Mexico still shines like a new diamond, and thecompany also has professed a desire to become more weighted tonatural gas.

Working gas levels in storage at the end of the winter heatingseason have been revised by the Energy Information Administration(EIA) after a report from ANR Pipeline that 47 Bcf of working gasin its Michigan storage facilities was reclassified as base gas.The change means working gas levels at the end of the winterheating season were 3% lower than first reported by the EIA, or1,430 Bcf compared to 1,477 Bcf.

The Energy Information Administration reported that 47 Bcf ofworking gas in Michigan storage facilities was reclassified as basegas in March, which means working gas levels at the end of thewinter heating season were 3% lower than first reported, or 1,430Bcf compared to 1,477.

The bears were at it again at Nymex on Tuesday, prompting someanalysts to suggest the downtrend that has weighed on the marketfor over 4 months has resumed. The September contract was thehardest hit by the selling pressure, moving down 5.8 cents to$1.983 on the day.