Integrated

Wilshire Oil Co. said it has signed an agreement to participate with one of the largest (non integrated) oil and natural gas companies in the United States in a major drilling program in Canada. Wilshire said it anticipates that the company’s overall gas reserves may increase by as much as 31% by this year-end as a result of this program. Under the agreement, Wilshire will have a 30% interest in a total of 380 wells, in the Medicine Hat-Hilda Area of southeastern Alberta including the 210 new gas wells to be drilled. The new wells are expected to triple the daily gas production from the unit by 2003. The project is expected to commence in the third quarter of 2002 and be completed by year-end. Cash flow from the new production will commence in the fourth quarter with full benefits realized by Wilshire from the increased production in early 2003.

Wilshire Oil Co. said it has signed an agreement to participate with one of the largest (non integrated) oil and natural gas companies in the United States in a major drilling program in Canada. Wilshire said it anticipates that the company’s overall gas reserves may increase by as much as 31% by this year-end as a result of this program. Under the agreement, Wilshire will have a 30% interest in a total of 380 wells, in the Medicine Hat-Hilda Area of southeastern Alberta including the 210 new gas wells to be drilled. The new wells are expected to triple the daily gas production from the unit by 2003. The project is expected to commence in the third quarter of 2002 and be completed by year-end. Cash flow from the new production will commence in the fourth quarter with full benefits realized by Wilshire from the increased production in early 2003.

The transmission and generation parts of vertically integrated rural electric cooperatives are enjoying strong credit ratings in the midst of the more turbulent private-sector electricity industry with its political and financial crunch. And proposed farm legislation in Congress eventually could strengthen the rural utilities’ financial positions as they enter somewhat of a generation building boom era, according to Standard & Poor’s latest analysis out of its energy finance team in New York.

Integrated energy companies have continued to consolidate, but finding value for the shareholders remains a challenge for companies in North America and around the world. To find that value, said an investment banker in Houston this week, some of the super majors may consider spinning off their exploration and production (E&P) units to concentrate on pure exploration and pure production — basically unbundling the value that many of the smaller independents have found.

Integrated energy companies have continued to consolidate, but finding value for the shareholders remains a challenge for companies in North America and around the world. To find that value, said an investment banker in Houston this week, some of the super majors may consider spinning off their exploration and production (E&P) units to concentrate on pure exploration and pure production — basically unbundling the value that many of the smaller independents have found.

The combination of Conoco Inc. and Phillips Petroleum Co., announced a week ago in an enterprise deal valued at $53.5 billion, will create the third largest integrated U.S. energy company, and also reduce the number of majors overall. ConocoPhillips, as it is set to be called when the merger closes, would be the third largest U.S. company based on market capitalization and oil and gas reserves and production. Worldwide, it would be the sixth largest.

Following its quarterly study, the Energy Performance Review (EPR) found that 10 of the largest US-based integrated petroleum companies reported consolidated earnings before special items totaling $11 billion for the third quarter of 2001, off one-third from the near-record $15.6 billion posted for the second quarter of the year. The mark also reflects nearly a one-third reduction from the $15.9 billion posted for the third quarter of 2000, according to the group’s most recent data.

The United States needs an integrated, aggressive, activist, long-term energy policy and the country needs it now, according to Mitch Daniels, director of the Office of Management and Budget (OMB). The nation needs it “although there still seems to be some people who do not have their eye on that ball, or even those who are taking an obstruction approach,” he said.

The United States needs an integrated, aggressive, activist, long-term energy policy and the country needs it now, according to Mitch Daniels, director of the Office of Management and Budget (OMB). The nation needs it “although there still seems to be some people who do not have their eye on that ball, or even those who are taking an obstruction approach,” he said.