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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: IndioBlues who wrote (54416)	11/10/1999 7:12:00 PM
From: BigBull	Respond to of 95453

Indio, More on TX: Please note the following quote: "The company will budget ``considerably in excess' of the $3 billion to $3.5 billion it spent this year for capital projects," This story has more detail. To me, the inference is clear: sacrifice short term production to gain long term reserve building. This guy is "betting the company" on the big NEW fields. NEW fields means NEW drilling and NEW infrastructure. The man has b@lls of solid brass. I love it! IMO this guy is raising all the cash he can to get first class tickets to Boom 2000! IMO he will also buy a considerable amount of "big tough oil toys for big tough oil boys"! <g> ------------------------------------------------------------ Bloomberg Energy Wed, 10 Nov 1999, 7:08pm EST 11/10 16:51 Texaco Says It Wants to Sell Oil Fields Producing 100,000 Barrels of Day By Terence Flanagan Texaco Wants to Sell Fields Producing 100,000 Barrels (Update3) (Adds production estimate in 3rd paragraph.) White Plains, New York, Nov. 10 (Bloomberg) -- Texaco Inc., the third-largest U.S. oil company, said it wants to sell oil fields that produce about 100,000 barrels a day to focus on the company's biggest projects. With the sales, the company expects oil and gas output to grow 1 to 2 percent annually over the next three to five years. That's down from a 7 to 9 percent estimate for production growth that Texaco made in 1996-97. Texaco produces 885,000 barrels a day worldwide, 400,000 of that in the U.S. Most of the fields the company is selling are in the U.S., though some are in the North Sea and Trinidad. Texaco plans to spend the proceeds on larger projects that promise higher returns, including fields in western Africa, Brazil, central Asia and Venezuela, Texaco Chairman and Chief Executive Peter Bijur told reporters at the company's White Plains, New York headquarters. The sale of the fields ``is under way,' Bijur said. Bijur also told reporters: -- Texaco has reached its goal of cutting annual expenses by $650 million, a year ahead of schedule. The plan was announced last year. ``There will be new savings for 2000-2001,' Bijur said, without being more specific. -- The company will budget ``considerably in excess' of the $3 billion to $3.5 billion it spent this year for capital projects, such as oil exploration and refinery upgrades. -- Texaco ``has looked at' buying Alaskan fields that BP Amoco has agreed to sell to win state approval of its $37 billion purchase of Atlantic Richfield Co. The agreement with Alaska calls for BP Amoco and Arco to sell about 175,000 barrels a day of North Slope production. Bijur wouldn't comment on what Texaco wants to buy or if talks are under way. Merger Benefits Bijur said Texaco hopes to pick up other properties sold to win clearance of buyouts such as Exxon Corp.'s $84 billion purchase of Mobil Corp. Merging companies won't pursue all exploration ventures they now have on the books, Bijur said. ``They will want to sell off properties,' he said. Texaco wants any acquisition to add at least 50,000 barrels of oil a day from a single field, Bijur said. Output cuts by oil-producing nations and recovering Asian demand will continue to support oil prices, Bijur said. U.S. prices are likely to settle between $17 a barrel and $19 a barrel in the long term, he said. ``I don't see the convergence of factors that crude would go to $15,' Bijur said. ``I would not be surprised to see it at $22.' Crude futures traded on the New York Mercantile Exchange rose 44 cents to $24.47 a barrel. Texaco shares rose 2 to 64 1/4 on the New York Stock Exchange. U.S. trading was about 2.1 million shares. -------------------------------------------------------------------------------- ¸ Copyright 1999, Bloomberg L.P. All Rights Reserved.