Replaces

Phillips Petroleum Co. reported last week that it replaced1,128% of its 2000 worldwide oil and natural gas production at anaverage preliminary finding-and-development (FD) cost of $2.39/Boe.Subtracting acquisitions and sales, the company still replaced 515%of its 2000 worldwide production.

Phillips Petroleum Co. reported yesterday that it replaced1,128% of its 2000 worldwide oil and natural gas production at anaverage preliminary finding-and-development (FD) cost of $2.39/Boe.Subtracting acquisitions and sales, the company still replaced 515%of its 2000 worldwide production.

A mild European winter with accompanying low heating oil priceswas the saving grace for U.S. industrials that took advantage ofthe flood of heating oil imports to switch off high-priced naturalgas. Revised estimates by Raymond James Associates show industrialsswitching at 5 Bcf/d during the coldest part of the winter, ratherthan the 3 Bcf/d originally estimated.

Phillips Petroleum Co. replaced 114% of its 1999 worldwideproduction at an average finding-and-development cost of $4.81/Boe.Excluding acquisitions and sales, Phillips replaced 103% of lastyear’s production.

Occidental Petroleum Corp. said it replaced 100% of 1999worldwide oil and gas production on an equivalent barrel basis.Over the past five years, Occidental has replaced an average 171%of production. Occidental also said it lowered its finding anddevelopment costs by 65% since 1997, to $3.03 per barrel in 1999.

Peachtree Natural Gas, the bankrupt supplier to over 170,000customers in Georgia, and Atlanta Gas Light (AGL), Peachtree’sbiggest creditor, forged an interim solution in bankruptcy courtyesterday in which Peachtree will continue serving its customersuntil the court reconvenes on Nov. 15. Both the LDC and the courthave been assured that Peachtree can reliably provide service forthe 10-day period.

Michael L. Williams has been named chairman of the TexasRailroad Commission (TRC). He replaces previous chairman TonyGarza. Williams is leading an agency-industry review of thecommission’s regulatory framework. He said, “the world energyindustry is changing dramatically – government needs to change itsapproach as well. With that in mind, the commission can and shouldoperate to allow Texas producers to act faster, operate less costlyand with more flexibility.

Mitchell Energy & Development replaced 187% percent of thegas and oil reserves it produced in fiscal 1998, even while settinga new high for annual gas sales of 238 MMcf/d.