production

The exploration and production (E&P) sector is going especially strong now, on high commodity prices and debt repayment, but operational performance, corporate governance and accounting issues remain a concern, underscored by the recent negative reserve revisions at Royal Dutch/Shell Group, El Paso Corp. and Forest Oil Corp., according to a report by Standard & Poor’s Ratings Service.

The 10-year outlook for domestic gas and oil production companies is “probably about the strongest of any industry,” according to Sanders Morris Harris analyst John Olson. Wellhead revenues over this decade are expected to be near double that of the 1990s. There’s no shortage of conventional drilling opportunities. And investors are recognizing the value inherent in the industry.

The 10-year outlook for domestic gas and oil production companies is “probably about the strongest of any industry,” said Sanders Morris Harris analyst John Olson. Wellhead revenues over this decade are expected to be near double that of the 1990s. There’s no shortage of conventional drilling opportunities. And investors are recognizing the value inherent in the industry.

With natural gas production down and prices remaining at persistently high and volatile levels, coal may be on its way back into favor for U.S. power generation, according to a report by Standard & Poor’s (S&P).

TransCanada PipeLines CFO Russell K. Girling said his company will be dealing with declining Western Canadian gas production over the next few years, but he believes that within several years Canadian supply will stabilize and remain flat over a significant period.

TransCanada PipeLines CFO Russell K. Girling said his company will be dealing with declining Western Canadian gas production over the next few years, but he believes that within several years Canadian supply will stabilize and remain flat over a significant period.

ConocoPhillips on Tuesday approved a $6.9 billion capital budget for next year, with 78% allocated toward exploration and production (E&P), 19% for refining and marketing and the rest toward emerging businesses. About $2 billion total is earmarked for North American and Latin American projects.

A new rule for oil and gas production in federal offshore waters now provides rights-of-use and easement, allowing companies easier access to areas adjacent to their leases, according to the Minerals Management Service (MMS).

A survey of many exploration and production companies by Lehman Brothers indicates that E&P spending next year will be flat to down slightly in the United States and Canada but up about 6.1% internationally as the majors continue to look overseas. Worldwide E&P spending, based on a survey of 335 companies, is expected to grow 4% to $144.3 billion, the survey found.