Escalate

After three years of increased exploration drilling and skyrocketing lease rates, Ohio should soon see Marcellus Shale development drilling, according to one state official.

With its reputation in tatters and costs continuing to escalate, BP plc last week launched a radical revamp, moving aside its CEO and shaking up its operations with plans to sell close to $30 billion worth of its worldwide assets.

With its reputation in tatters and costs continuing to escalate, BP plc on Tuesday announced a radical shakeup that will bring in new leadership and lead to divestments to make the company leaner. The expected asset sales, scheduled to be completed over the next 18 months, could result in the loss of 8% of BP’s total natural gas and oil production worldwide, which still would put the company ahead of Royal Dutch Shell plc.

ConocoPhillips has slashed its capital budget for 2007, and it warned that if service costs continue to escalate, its medium-term oil and natural gas production likely will be impacted.

The tightness of supply and demand has set the stage for “sustainable” $3.50-$4.00/Mcf natural gas prices throughout 2003, but a lack of economically drillable prospects may lead to more mergers as producers look for production and reserve growth, according to a 2003 oil and gas industry forecast.

The tightness of supply and demand has set the stage for “sustainable” $3.50-$4.00/Mcf natural gas prices throughout 2003, but a lack of economically drillable prospects may lead to more mergers as producers look for production and reserve growth, according to a 2003 oil and gas industry forecast.

Frontier market activity is increasing across the board forNorth American natural gas producers who have begun pouring moreresources into deepwater Gulf of Mexico, Atlantic Canada and theArctic to complement the increasingly stronger plays onshore.Still, bureaucracy is hindering the ramp up for new exploration andproduction that could hinder supplies into the future, warned someenergy experts last week.

Frontier market activity is increasing across the board forNorth American natural gas producers who have begun pouring moreresources into deepwater Gulf of Mexico, Atlantic Canada and theArctic to complement the increasingly stronger plays onshore.Still, bureaucracy is hindering the ramp up for new exploration andproduction that could hinder supplies into the future, warned someenergy experts yesterday.