Earth

Denver-based Basic Earth Science Systems Inc. said last week that through its Basic Canada Inc. subsidiary it has established Legent Resources Corp. — a unlimited liability company — for the purpose of drilling development and exploratory wells in Canada. Of note is the fact that Legent intends to explore a section of the Williston Basin that remains relatively untapped.

From mega majors to independents, producers’ earnings, which one year ago soared on record profit, glided to earth in the fourth quarter of 2001, knocked down by a world-wide recession, terrorist attacks that in turn reduced travel and lower energy prices. The first major to report, and the leader, Exxon Mobil Corp., reported a 49% drop in fourth quarter profits. Phillips Petroleum Corp. and Conoco, set to merge this year, followed with lower earnings. Independents also disclosed quarterly declines in reports from Burlington Resources Inc., Amerada Hess Corp., Kerr-McGee Corp., Ocean Energy Inc., Houston Exploration Co. and Cabot Oil & Gas Corp..

From mega majors to independents, producers’ earnings, which one year ago soared on record profit, glided to earth in the fourth quarter of 2001, knocked down by a world-wide recession, terrorist attacks that in turn reduced travel and lower energy prices. The first major to report, and the leader, Exxon Mobil Corp., reported a 49% drop in fourth quarter profits. However, independents also are feeling the pinch, as Burlington Resources Inc., Amerada Hess Corp. and Kerr-McGee Corp. all reported fourth-quarter declines.

Like an old wooden roller coaster that ratchets its way to the top only to plunge back to earth in a matter of seconds, natural gas futures free-fell yesterday, as traders liquidated weak length acquired over the last several weeks. The gut-wrenching session left the prompt May contract 26.8 cents lower at $5.248.

Spot prices appeared to be aimed at escaping earth’s orbit Mondayas they skyrocketed by huge amounts, led by several western pointsrecording increases in triple digits. A strong screen had someinfluence, but it was frigid weather saturating most of the NorthAmerican continent and prompting a plethora of pipeline OFOs (see Transportation Notes) that played thebiggest role in a market that awed many participants.