Unrelated

The natural gas industry in Pennsylvania could need to fill nearly 31,000 jobs to keep up with growing shale development in the state over the next three years, according to a recent report.

Calgary-based EnCana Corp.’s decision to build its natural gas reserves in East Texas is unrelated to Alberta’s decision to revise the oil and gas royalty regime, the CEO said last week (see related story). However, EnCana CEO Randy Eresman said the Deep Bossier acquisition may affect the company’s spending plans and lead to possible divestitures in 2008.

Calgary-based EnCana Corp.’s decision to build its natural gas reserves in East Texas is unrelated to Alberta’s decision to revise the oil and gas royalty regime, the CEO said Monday (see related story).

Occidental Petroleum Corp. said Thursday that several 4Q2004 charges and a tax credit, unrelated to its oil and natural gas business, will negatively impact earnings by about $65 million (16 cents/share). The biggest charge follows the closing of the company’s chemicals affiliate, Occidental Chemical Corp. (OxyChem), which it said it was exiting for “strategic and economic reasons.” The unprofitable vinyl specialty resins business is in Pottstown, PA was closed, resulting in a pre-tax charge of $53 million. Approximately 220 employees will be affected by the closure, Occidental said. Besides the plant closure, Occidental also will take a pre-tax charge of $12 million to write-off some production facilities using mercury cell technology at OxyChem’s Delaware City, DE chloralkali plant. These actions were taken to strengthen the company’s profitable core chloralkali and polyvinyl chloride (PVC) business. Occidental also will take pre-tax charges totaling $76 million to increase its environmental remediation reserves, provide for several ongoing litigation matters and increase its self-insurance reserves. The environmental charge included in the total mainly reflects revisions of cost estimates and changes in work programs at a number of existing remediation sites. These charges will be partially offset by a tax credit of approximately $27 million that will be recorded to reflect the settlement of some income tax audit issues. Following the announcement, Standard & Poor’s Equity Research reiterated a “buy” rating and lowered the 4Q2004 operating earnings estimate to $1.70/share from $1.72. S&P Equity Research raised 2005 earnings estimates by a penny to $6.31.

Plains Exploration & Production Co. said Thursday it is selling some non-core properties on and offshore California, as well as nearly all of its assets in South Texas and New Mexico to reduce its unit cost structure. The transactions, which represent about 11% of the company’s production volumes but 20% of total cash production expenses, are expected to close by the end of this year.

Plains Exploration & Production Co. said Thursday it is selling some non-core properties on and offshore California, as well as nearly all of its assets in South Texas and New Mexico to reduce its unit cost structure. The transactions, which represent about 11% of the company’s production volumes but 20% of total cash production expenses, are expected to close by the end of this year.

Progas Storage and Marketing, based in Abilene, TX (unrelated toCalgary-based ProGas), announced plans last week to develop 40 Bcfof working storage capacity along major interstate pipelines in theIllinois and Appalachian basins over the next four years.

Progas Storage and Marketing, based in Abilene, TX (unrelated toCalgary-based ProGas), announced plans yesterday to develop 40 Bcfof working storage capacity along major interstate pipelines in theIllinois and Appalachian basins over the next four years.