Worldwide

Major corporations, led by ExxonMobil, GE, and Schlumberger are underwriting a multi-million dollar program, collaborating with Stanford University in an unprecedented initiative to develop global energy systems with low greenhouse gas emissions.

Royal Dutch/Shell, Exxon Mobil Corp., ChevronTexaco, Burlington Resources Inc. Petrobras and Schlumberger are but a few of the 75 foreign companies that have expressed an interest in the long-term natural gas production contracts officially unveiled by Mexico’s state-run oil monopoly last week. The first agreements are expected to be offered in November, officials said (see NGI, June 17).

Standard & Poor’s said last week that 2001 set a record for corporate defaults, with 211 companies worldwide — 162 in the United States — defaulting on $115.4 billion worth of debt. The old record was set a year earlier, when 132 companies defaulted on $42.3 billion of debt, said the credit ratings agency. S&P expects the U.S. economy to bottom out in the first quarter, with the default rate peaking near 11% by this summer and then “trailing off” by the end of 2002.

Standard & Poor’s said Monday that 2001 set a record for corporate defaults, with 211 companies worldwide — 162 in the United States — defaulting on $115.4 billion worth of debt. The old record was set a year earlier, when 132 companies defaulted on $42.3 billion of debt, said the credit ratings agency. S&P expects the U.S. economy to bottom out in the first quarter, with the default rate peaking near 11% by this summer and then “trailing off” by the end of 2002.

Exposure to possible losses due to energy giant Enron’s financial failure continued to spread like a worldwide epidemic last week with companies and financial institutions around the world reporting potential losses, reflecting the broad reach both of the company’s business and its stock.

Conoco: The Houston-based top five major said that weaker worldwide crude oil and North American natural gas prices resulted in lower earnings for the third quarter. Net income before special items totaled $404 million, or 64 cents per diluted share, 23% below last year’s record third quarter of $523 million, or 83 cents per share. Revenue for the quarter amounted to $9.7 billion, down 9% from $10.7 billion last year on lower prices for refined products, crude oil and natural gas. For the first nine months, net income before special items totaled a record $1.6 billion, or $2.56 per share, up 18% versus $1.4 billion, or $2.17 per share, earned last year. Revenue for the first three quarters exceeded $30.7 billion, up 6% from $28.9 billion last year. Special items during the quarter totaled $147 million, or 24 cents per share,attributed mostly with its Gulf Canada acquisition and related actions to reduce debt (see Daily GPI, May 30). These included a net charge of $44 million for assets sold or held for sale; a $24 million premium paid for the early retirement of Gulf Canada debt; and a $38 million currency loss. Additionally, a $41 million charge resulted from an adverse ruling on a patent dispute. Including special items, net income totaled $257 million, or 40 cents per share, down from $497 million, or 79 cents per share, earned during the same period last year. Year-to-date net income was $1.5 billion, up 8% from $1.4 billion in 2000. For complete financial details, visit the web site at www.conoco.com.

Global Marine’s worldwide SCORE, or Summary of Current Offshore Rig Economics, for July 2001 dropped 0.3% from the previous month’s SCORE as dayrates continued to decline, particularly in the Gulf of Mexico. Rapidly declining natural gas prices this year have had a dampening affect on drilling activity in the Gulf.

Global Marine’s worldwide SCORE, or Summary of Current Offshore Rig Economics, for July 2001 dropped 0.3% from the previous month’s SCORE as dayrates continued to decline, particularly in the Gulf of Mexico. Rapidly declining natural gas prices this year have had a dampening affect on drilling activity in the Gulf.

Phillips Petroleum Co., which holds down fifth place on the list of oil and gas companies worldwide, said its second quarter profits were up more than expected, jumping 37% on crude oil, natural gas and gasoline commodity pricing. Phillips, in the process of acquiring Tosco Corp., said income excluding special items was up to $601 million, or $2.33 a share, compared with $439 million, or $1.72 a share for the second quarter of 2000. However, revenues were lower, falling to $5 billion from $5.4 billion a year ago.