Crude

Natural gas is slowly replacing crude oil as the fuel of choice around the globe, lifted not only by its clean-burning capabilities but by the amazing growth of liquefied natural gas (LNG) and the emergence of gas-to-liquids (GTL), top energy producers said Wednesday at Cambridge Energy Research Associates’ CERAWeek in Houston.

Natural gas is slowly replacing crude oil as the fuel of choice around the globe, lifted not only by its clean-burning capabilities but by the amazing growth of liquefied natural gas (LNG) and the emergence of gas-to-liquids (GTL), top energy producers said Wednesday at Cambridge Energy Research Associates’ CERAWeek in Houston.

ConocoPhillips’ upstream unit, comprised of crude oil, natural gas and natural gas liquids production on a boe/d basis, is expected to be near first quarter levels, the company said last week in an interim second quarter report. While the results benefited from a full quarter’s output from Venezuela facilities and new wells coming online in China, the gains were offset by normal seasonal declines in Alaska, Norway and the United Kingdom.

ConocoPhillips’ upstream unit, comprised of crude oil, natural gas and natural gas liquids production on a boe/d basis, is expected to be near first quarter levels, the company said Wednesday in an interim report. While the results benefited from a full quarter’s output from Venezuela facilities and new wells coming online in China, the gains were offset by normal seasonal declines in Alaska, Norway and the United Kingdom.

Constraints on supplies of natural gas, crude oil and coal are unlikely to occur worldwide before 2025, but in the next 20 years, the energy industry will be challenged to design sustainable technology that can replace depleted fossil fuels, the chairman of the Royal Dutch/Shell Group told a Houston audience.

Constraints on supplies of natural gas, crude oil and coal are unlikely to occur worldwide before 2025, but in the next 20 years, the energy industry will be challenged to design sustainable technology that can replace depleted fossil fuels, the chairman of the Royal Dutch/Shell Group told a Houston audience.

Marathon Oil Corp. reported that it replaced 262% of its worldwide crude oil and natural gas production during 2002, excluding net sales of reserves in place. Total reserves increased 237 million boe, or 23% at year-end 2002, to 1,283 million boe.

The October natural futures contract plateaued at $3.467 at the end of regular trading Friday, up 13.8 cents from the prior day on a major rebound off a key support level on Thursday at $3.19. Observers pointed to a strengthening in the overall petroleum complex Friday due mainly to Iraq’s rejection of renewed United Nations inspections. In addition, Tropical Storm Hanna in the Gulf of Mexico was forcing some minor production curtailments, and some technical factors were helping to channel futures prices higher.

AltaCanada Energy Corp. said as of July 1, 2002, its established reserve base of crude oil and natural gas (proven plus one-half probable), including its 74% share of Alberta Selecta, is 1,184,000 boe. Of that, natural gas accounted for 64% of the total, while oil and liquids comprised 36%. Of the established reserves, 82% were classified as proven. AltaCanada contracted Gilbert Laustsen Jung Associates Ltd. (GLJ) of Calgary to prepare the reserves report. The initial report came out on Jan. 1, 2002. The report covers all of AltaCanada’s assets, including that of Alberta Selecta Corp., AltaCanada’s recently purchased 74% owned subsidiary, net of the property disposition announced on Aug. 12. Of those reserves, the company said it has 5,380 MMcf of proved and probable natural gas reserves and 1,396 mboe of proved and probable oil and liquid reserves. AltaCanada added that it has total proved producing reserves of 2,452 MMcf of gas and 763 Mboe of oil and liquids. The company said the discounted net present value of its reserves were estimated using average prices during the last six months of 2002 of C$3.92/Mcf of gas and C$29.25/bbl, and escalated according to GLJ’s July 2002 price forecast. The reserve life of AltaCanada’s proved and established reserves is 7.4 years and 8.7 years respectively.