Output

A Category 5 hurricane that passes through the heart of Gulf of Mexico energy platforms could cause producer damage and output losses of more than $65 billion, according to an expert on extreme-risk modeling.

ExxonMobil Corp.’s active exploration program combined with lower oil and natural gas output to give the company its first profit miss since 3Q2005 Thursday, with net income down 1% from a year ago.

Because of lower commodity prices, ConocoPhillips and Marathon Oil Corp. both expect to report lower oil and natural gas output for 1Q2007 than in the final three months of 2006.

A new natural gas field in northern Alberta is producing at a gross rate of 18 MMcf/d from three wells, and within the next week, output is expected to reach a sustainable rate of 24 MMcf/d, according to leaseholder Pioneer Natural Resources Co.

ConocoPhillips bolstered its oil and natural gas output last year by 300% with the addition of 2.6 billion boe in new reserves, the company said in a preliminary 2006 estimate. However, energy analysts criticized the Houston-based producer, noting that Conoco’s proved reserves rose almost entirely on its $35.6 billion cash-and-stock acquisition of Burlington Resources Inc. and its increased stake in Russia’s LUKOIL.

ConocoPhillips bolstered its oil and natural gas output last year by 300% with the addition of 2.6 billion boe in new reserves, the company said in a preliminary 2006 estimate. However, energy analysts criticized the Houston-based producer, noting that Conoco’s proved reserves rose almost entirely on its $35.6 billion cash-and-stock acquisition of Burlington Resources Inc. and its increased stake in Russia’s LUKOIL.

North American natural gas production growth over the past five years has been “virtually nil,” but flat output won’t deter investment in U.S. and Canadian assets, energy executives said Tuesday.

Noble Energy Inc., which acquired Rocky Mountain-focused Patina Oil & Gas Corp. last May, reported a 36% increase in 2005 year-end oil and natural gas output and a near doubling of its annual income. Meanwhile, Western Gas Resources Inc., which last year picked up more Rockies assets and began coalbed methane (CBM) exploration in western Canada, said production jumped 14%, with income up 60%.

EnCana Corp. reported cash flow in 2005 climbed 57% on record natural gas output and strong proved reserves additions, with growth in all of its North American resource plays. However, because of “inflationary pressures,” the company, which is North America’s largest independent, plans to reduce some of its drilling investments this year, resulting in an 8% reduction in its upstream capital forecast and a drop in gas sales of about 75 MMcf/d.