EIN Presswire: ConocoPhillips Live Feed Press Releases

USW Philly Oil Refinery Leaders Holding PA State Capitol Press Conference in Rotunda, 12:00 Noon, Feb. 8

Tue, 07 Feb 2012 20:45:40 +0000

USW Philly Oil Refinery Leaders Holding PA State Capitol Press Conference in Rotunda, 12:00 Noon, Feb. 8

PR Newswire

Impact of Three Refinery Shutdowns on State to be Cited

HARRISBURG, Pa., Feb. 7, 2012 /PRNewswire-USNewswire/ -- Pennsylvania leaders of the United Steelworkers (USW) will be joined by AFL-CIO President Rick Bloomingdale and invited Pennsylvania state assembly leaders in the State Capitol Rotunda on Wednesday, Feb. 8 at 12:00 Noon to cite growing concerns about the shutdown impact of three major oil refineries in Philadelphia.

(Logo: http://photos.prnewswire.com/prnh/20080131/DC12982LOGO)

Permanent closure of three oil refineries was announced last September for this year by Sunoco and ConocoPhillips, employing about 2,500 workers jobs in the Philadelphia area. The three refineries produce heating oil, diesel, jet and auto fuels -- processing more than 700,000 barrels a day of oil, or about 46 percent of the Northeast region's refining capacity. About one million Pennsylvanians use heating oil.

Union leaders from the Sunoco refineries in Philadelphia and Marcus Hook, PA, plus the ConocoPhillips refinery in Trainer, PA will be speaking and available for questions from the news media. The USW is calling for state and congressional public hearings and the search for potential buyers to keep the refineries operating.

WHAT:	Press news conference on shutdown of Philly oil refineries

WHEN:	Wednesday, February 8, 2012; 12:00 Noon

WHERE:	PA State Capitol Rotunda, Harrisburg
WHO:	Rick Bloomingdale, President, PA State AFL-CIO
	John P. DeFazio, Director, USW District 10
	Invited PA State Senate & House Legislative Members
	Jim Savage, Sunoco-Philadelphia, Local 10-1 President
	Dave Miller, Sunoco-Marcus Hook, Pa., Local 10-901 President
	Denis Stephano, ConocoPhillips-Trainer, Pa., Local 10-234 President

Contacts: Jim Deegan (AFL-CIO), 717-231-2867; editor@paaflcio.org
Gary Hubbard (USW), 202-256-8125; ghubbard@usw.org

SOURCE United Steelworkers (USW)

ATC Associates Inc. Merges with Cardno to Expand Global Reach

Tue, 07 Feb 2012 01:18:29 +0000

ATC Associates Inc. Merges with Cardno to Expand Global Reach

PR Newswire

LAFAYETTE, La., Feb. 6, 2012 /PRNewswire/ -- ATC Associates Inc. and international firm Cardno have announced their intent to merge by 1st March 2012.

(Logo: http://photos.prnewswire.com/prnh/20110907/MM64542LOGO)

The merger with Cardno, a professional services firm founded in 1945 with headquarters in Brisbane, Australia, means that ATC, a 1,600-person environmental services firm, becomes a key part of an international industry leader with a combined resource base of more than 6,200 staff working on projects in 85 countries.

Bobby Toups, President of ATC, said the merger marks an important step in the next chapter of growth for ATC.

"Our motivation to seek a partnership with an international firm like Cardno was three-fold. First to provide our clients with a wider range of services and locations; second to provide our talented staff with additional opportunities for career development; and third to accelerate the growth of ATC across the US and overseas."

"ATC is a growth-oriented, profitable business and by combining with Cardno we will be able to expand organically and look to complement our existing discipline offering with targeted acquisitions," said Mr. Toups.

ATC brings to Cardno specialized expertise in environmental consulting, building sciences, geotechnical and construction materials testing services. Headquartered in Lafayette, LA, ATC has 71 offices located across 39 US states.

Selected key clients of ATC include Speedway, ConocoPhillips, Bechtel, Walmart, Port of New Jersey/New York, NYC Housing Authority and the North Carolina Department of Environment and Natural Resources.

"The potential synergistic benefits from our combined firms are enormous for our staff, our clients and our financial performance," commented Toups.

Managing Director and CEO of Cardno, Mr. Andrew Buckley, said that the Cardno and ATC union follows the successful business model Cardno has implemented in the US and other countries.

"ATC complements our existing environmental consulting and environmental services operations and together we become a platform for the expansion of our combined operations across the Americas," said Mr. Buckley.

With the addition of ATC, Cardno's American operations now comprise more than 4,000 staff across 186 locations with additional branch offices in Canada, Ecuador, Peru, United Kingdom, Germany and Belgium.

President of Cardno USA, Michael Renshaw, said the merger with ATC will significantly expand Cardno's environmental capabilities to support the oil and gas, mining, manufacturing, infrastructure and real estate markets, an expanded geographic footprint across the US and Europe and mutual opportunities to enhance service delivery to our clients.

"ATC's business culture and growth potential make it an ideal platform for further expansion of our combined businesses across North and South America in providing a wide range of environmental consulting services. With the addition of ATC, around 65 percent of Cardno's 6,200 staff are currently deployed or reside outside Australia," Mr. Renshaw said.

Following Cardno's normal strategy, ATC's key management will become Cardno shareholders and remain active in the company.

For further information:

Bobby Toups
President
ATC Associates, Inc.
Ph: 337.781.2441
Cell: 337.262.7968

Michael Renshaw
President
Cardno USA, Inc.
Ph: 503.734.1800
Cell: 503.929.6462

About ATC: ATC was established in 1982 and has offices strategically located throughout the U.S. The firm provides expertise in environmental consulting, building sciences, geotechnical and construction materials testing. The core markets served by ATC include private and public clients in oil and gas, utilities, infrastructure, manufacturing and real estate. More information about ATC is available at www.atcassociates.com.

About Cardno: Founded in 1945, Cardno partners with public and private clients to solve engineering, environmental and social challenges in nine key markets. With the addition of ATC, Cardno has 186 offices in the Americas and 250 worldwide. Cardno provides clients with access to over 6,200 professionals focused on delivering customized consulting solutions to plan, design and construct social and physical infrastructure. Cardno's US operations were ranked the #1 fastest growing firm in the US in 2011. Cardno is listed on the Australian Securities Exchange [ASX: CDD]. www.cardno.com.

SOURCE Cardno USA

New NanoMarkets Report Projects Strong Growth for Lithium Battery Electrode Materials

Thu, 26 Jan 2012 12:00:00 +0000

New NanoMarkets Report Projects Strong Growth for Lithium Battery Electrode Materials

PR Newswire

GLEN ALLEN, Va., Jan. 26, 2012 /PRNewswire/ -- In a newly released report, "New Electrode Materials for Lithium Ion Batteries -2012", industry analyst firm NanoMarkets projects that the need for higher performance batteries for consumer electronics, hybrid/electric vehicles and other applications will quickly create a large market for novel lithium battery electrode materials. Revenues from non-conventional electrode materials are expected to reach around $1.3 billion by 2017, representing an almost 25 percent share of all lithium battery electrode materials sold. At present this share is 8 percent.

Although many materials are being tried out, NanoMarkets believes that those with the most potential for cathodes are lithium manganese oxide, lithium iron phosphate, nickel manganese cobalt composite and nickel cobalt alumina composite. For anodes, the growth opportunities are to be found in lithium titanate and silicon. This report also analyzes and forecasts markets for the traditional electrode materials; lithium cobalt oxide and graphite.

Additional details about the report are available at http://nanomarkets.net/market_reports/report/new_electrode_materials_for_lithium_ion_batteries_2012

About the Report:

This report analyzes the markets for lithium ion battery electrode materials driven by developments in the consumer electronics, power tools, electric/hybrid vehicles, smart grids/stationary and military/aerospace segments. The eight-year forecasts are broken out by type of material both in volume and value terms for each application.

The report also discusses the strategies of some important suppliers of relevant electrode materials. Companies mentioned include: 3M, A123, Actacell, AGM Batteries, Aleees, Altairnano, Amprius, BASF, ConocoPhillips, Enerdel, Enerize, Enia, Envia Systems, Hitachi, Johnson Controls, LG Chem, NEI, Nexeon, Panasonic, Phostech, Saft, Samsung, Sony, Toshiba and Umicore.

From the Report:

The current performance of lithium ion batteries limits its addressable markets especially in automotive and smart grid applications. Better electrodes seem the main way to address this limitation and the success of lithium manganese oxide (LMO) as the novel cathode material that allowed the lithium ion battery to break into the power tools business has paved the way for this strategy. To date, LMO is the only non-conventional electrode material to reach high volume sales and revenues from this material will generate more than $430 million by 2017.
The fastest growing electrode material markets will be those for lithium iron phosphate and nickel manganese cobalt for cathodes which together will account for almost $700 million in revenue by 2017. Lithium ion phosphate seems well positioned to challenge LMO since it can offer a similar performance, but is considered to be safer. This makes it attractive in a number of markets especially automotive. Nickel manganese cobalt offers an especially high energy density.
Despite well-established R&D programs intended to replace graphite as the anode material of choice for lithium batteries, NanoMarkets believes that graphite will still account for more than 90 percent of the revenues from anode materials until after 2017. Alternative materials have been quite challenging to develop and are at an early stage of development. However, there is a strong incentive to pursue this goal because EVs are demanding higher energy densities. Despite the hype about silicon, titanate anodes are likely to offer more immediate business prospects, although there may be some use of silicon by Panasonic and a few other companies in consumer electronics applications.

About NanoMarkets:

NanoMarkets tracks and analyzes emerging market opportunities in energy, electronics and other markets created by developments in advanced materials. The firm is a recognized leader in industry analysis and forecasts in these areas and has been covering battery markets for almost seven years.

Visit www.nanomarkets.net for a full listing of NanoMarkets' reports and other services.

SOURCE NanoMarkets

ConocoPhillips Reports Fourth-Quarter Earnings of $3.4 Billion or $2.56 Per Share

Wed, 25 Jan 2012 13:12:42 +0000

Adjusted earnings of $2.7 Billion or $2.02 per share

ConocoPhillips quarterly conference call is scheduled for 11 a.m. Eastern time today. To listen to the conference call and view related presentation materials, go to http://www.conocophillips.com and click on the "Investor Information" link. For detailed supplemental information, click here.

HOUSTON, Jan. 25, 2012 - ConocoPhillips [NYSE:COP] today reported fourth-quarter earnings of $3.4 billion, compared with fourth-quarter 2010 earnings of $2.0 billion. Fourth-quarter 2011 earnings excluding $723 million of special items were $2.7 billion. Special items were primarily related to gains on asset dispositions, partially offset by impairments and costs related to the Bohai Bay incidents.

“We operated well during the fourth quarter,” said Jim Mulva, chairman and chief executive officer. “Production and refinery utilization met expectations. For the year, we replaced 120 percent of our 2011 production with organic reserves across our asset base. We continued execution of our 2010-2012 repositioning plan, including $4.8 billion of asset sales and $11.1 billion of share repurchases during the year. We are also progressing plans to create two leading energy companies during the second quarter of 2012.”

Exploration and Production’s (E&P) fourth-quarter 2011 adjusted earnings were higher, compared with the same period in 2010, primarily due to stronger crude oil and liquefied natural gas (LNG) prices, partially offset by higher taxes. Excluding the impact of dispositions and the suspension of operations in Libya and China, production was lower by 21,000 barrels of oil equivalent (BOE) per day, or 1 percent, compared with the fourth quarter of 2010. The decrease was primarily from natural decline, partially offset by new production from major projects and other field exploitation.

In January 2012, the company’s Australia Pacific LNG (APLNG) joint venture announced an amendment to its existing LNG sales agreement with Sinopec for the supply of an additional 3.3 million tonnes per annum (MTPA) of LNG through to 2035 from its world-class LNG project in Queensland. The joint venture partners also agreed to terms for Sinopec to raise its ownership interest in APLNG to 25 percent. An agreement was also signed in November with Kansai Electric Power Company for the supply of approximately 1 MTPA of LNG commencing with the startup of the second train. These two agreements complete the marketing of the second train, with sanctioning of train construction expected during the first quarter of 2012.

ConocoPhillips continues to pursue frontier exploration opportunities around the world. During the quarter, the company signed production sharing agreements for deepwater blocks 36 and 37 in Angola’s emerging subsalt play trend. The company also acquired more than 100,000 acres in North American liquids-rich shale plays, bringing its 2011 shale acquisitions to more than 500,000 acres. In addition, ConocoPhillips added to its position in the deepwater Gulf of Mexico, successfully bidding on 75 blocks in the Paleogene play in December’s western Gulf of Mexico lease sale.

The company’s North American unconventional assets were a source of high-margin production growth during the quarter and the year. Fourth-quarter production from Eagle Ford, Bakken and Barnett shale plays and Canadian oil sands assets averaged 153,000 BOE per day, an increase of 53,000 BOE per day from a year ago. At Eagle Ford, production exceeded 50,000 BOE per day in late December and is expected to grow to 100,000 BOE per day by the end of 2012.

The Refining and Marketing (R&M) segment operated well in the fourth quarter. The worldwide capacity utilization rate and clean product yield were at the highest levels of the year at 94 percent and 84 percent, respectively. In addition, unplanned downtime was at the lowest level of the year. R&M’s reported earnings for the quarter were $1,714 million, including gains on asset dispositions.

R&M’s fourth-quarter 2011 adjusted earnings were $201 million, including $180 million related to liquidating inventory associated with portfolio changes during the year. Adjusted earnings were lower compared with a year ago, primarily due to less favorable crude differentials partially offset by improved market crack spreads, higher volumes and marketing margins, as well as lower costs.

The U.S. refining capacity utilization rate was 93 percent and the international rate was 98 percent. Pre-tax turnaround expenses for the quarter were $90 million, in line with expectations. For the full year of 2011, pre-tax turnaround expenses were $297 million.

During the quarter, the company disposed of its interests in the Colonial, Seaway Crude and Seaway Products pipelines for a total of $2.4 billion in sales proceeds. In addition, Wood River’s Coker and Refinery Expansion (CORE) project started up operations in mid-November, resulting in a 5 percent increase in clean product yield at the refinery.

The Chemicals and Midstream segments posted solid earnings for the fourth quarter. Chemicals earnings of $156 million increased over the prior year, primarily due to higher volumes related to the startup of international projects late in 2010. Midstream earnings of $118 million were higher than a year ago reflecting higher natural gas liquids prices.

For the company, full-year 2011 controllable costs were in line with 2010. Higher costs from foreign currency impacts and increases in market prices for goods and services were offset by reduced costs as a result of asset dispositions. Corporate expenses for the quarter were $199 million after-tax, compared with $305 million for the fourth quarter of 2010. Adjusted corporate expenses were $151 million improved compared with a year ago, primarily due to lower net interest expense and benefit-related expenses, as well as higher foreign exchange gains.

During the fourth quarter of 2011, ConocoPhillips repurchased approximately 46 million of its shares, or 3 percent of shares outstanding, for $3.1 billion. This brings the company’s total shares repurchased to approximately 15 percent of the shares outstanding at the inception of the repurchase program in 2010. At Dec. 31, 2011, 1,292 million basic shares were outstanding. In December, ConocoPhillips also announced a program to repurchase up to an additional $10 billion of the company’s common stock from 2012 onwards.

Fourth-Quarter Financial Highlights

ConocoPhillips’ fourth-quarter 2011 earnings were $3.4 billion, or $2.56 per share, compared with earnings of $2.0 billion, or $1.39 per share, for the same period in 2010. Fourth-quarter 2011 earnings included a $1.5 billion net gain from asset sales, largely from pipeline dispositions, partially offset by impairments primarily related to an investment in the Naryanmarneftegaz joint venture in Russia of $0.4 billion and $0.2 billion for certain Canadian conventional natural gas assets, as well as settlement of environmental claims and other costs related to Bohai Bay of $0.1 billion.

Fourth-quarter adjusted earnings were $2.7 billion, or $2.02 per share, compared with adjusted earnings of $1.9 billion, or $1.32 per share, for the same period in 2010. Adjusted earnings for the quarter increased compared with the prior year, primarily due to the impact of higher commodity prices, partially offset by higher taxes and lower refining margins.

During the fourth quarter of 2011, ConocoPhillips generated $5.8 billion in cash from operations and received $2.7 billion in proceeds from asset dispositions. These proceeds were used to fund a $4.0 billion capital program, repurchase $3.1 billion of ConocoPhillips common stock, pay $0.9 billion in dividends and reduce debt by $0.5 billion.

Full-Year Financial Highlights

ConocoPhillips’ full-year 2011 earnings were $12.4 billion, or $8.97 per share, compared with $11.4 billion, or $7.62 per share, for 2010.

Full-year 2011 adjusted earnings were $12.2 billion, or $8.76 per share, compared with full-year 2010 adjusted earnings of $8.8 billion, or $5.92 per share. Adjusted earnings were higher than a year ago, primarily due to the impact of higher commodity prices and U.S. refining margins. The increase was partially offset by the absence of $1.3 billion of equity earnings from LUKOIL, higher taxes of approximately $2.0 billion and 8 percent lower production volumes. Earnings per share also benefited from a substantial reduction in shares outstanding.

At year end, the company had $5.8 billion in cash and $0.6 billion in short-term investments. As of Dec. 31, 2011, debt was $22.6 billion and the debt-to-capital ratio was 26 percent.

2010-2012 Repositioning Plan Update

ConocoPhillips’ three-year strategic plan to reposition the company is focused on improving portfolio returns and increasing value and distributions for our shareholders. These actions began in 2010 and will extend through 2012.

Over this period, ConocoPhillips’ asset divestiture program generated $10.7 billion in proceeds, in addition to $9.5 billion from LUKOIL share sales. The company has retired $6.0 billion in debt, repurchased 15 percent of shares outstanding for $15.0 billion and increased its dividend rate 32 percent.

ConocoPhillips continues to invest in projects which will create long-term shareholder value. The company is targeting high-return upstream opportunities, spending $12.7 billion or 91 percent of its 2011 capital program in E&P. This is an increase of $3.4 billion over the 2010 E&P program of $9.3 billion, and is planned to grow to $14.0 billion in 2012. Due to the current market environment, the company continues to limit investments in North American natural gas production, which represented 26 percent of 2011 production.

As a result of the ongoing share repurchase program, production per share, adjusted for Libya, has improved 5 percent from 2010 to 2011. The company has also achieved an average organic reserve replacement of more than 130 percent over the last three years.

Through these initiatives and market improvements, return on capital employed on a reported basis increased from 6 percent in 2009 to 15 percent in 2011. Over this period of time, capital employed was reduced by 3 percent while earnings improved by 182 percent.

The company’s repositioning into two independent companies continues to progress. Phillips 66 will be the name of the independent downstream company and will be headquartered in Houston and trade on the New York Stock Exchange under the ticker symbol PSX. Several future executive appointments have been announced for both ConocoPhillips and Phillips 66, reporting to the designated CEOs, Ryan Lance and Greg Garland, respectively. A private letter ruling request from the U.S. Internal Revenue Service and the initial Form 10 registration statement with the Securities and Exchange Commission were filed during the quarter.

“We expect to complete our repositioning into two independent companies in the second quarter of 2012,” said Mulva. “Both companies are being positioned for long-term value creation within their respective industries.”

ConocoPhillips will host a conference call at 11 a.m. Eastern time today to discuss its quarterly results and provide a status update on operational and strategic plans. To listen to the conference call and view related presentation materials, go to www.conocophillips.com and click on the "Investor Information" link. For detailed supplemental information, go to www.conocophillips.com/EN/investor/financial_reports/earnings_reports/Pages/index.aspx.

ConocoPhillips is an integrated energy company with interests around the world. Headquartered in Houston, the company had approximately 29,800 employees, $153 billion of assets, and $245 billion of revenues as of Dec. 31, 2011. For more information, go to www.conocophillips.com.

Agreement Reached for Fishery Compensation Related to PL 19-3 Oil Spill Incident

Wed, 25 Jan 2012 02:30:00 +0000

Agreement Reached for Fishery Compensation Related to PL 19-3 Oil Spill Incident

PR Newswire

HONG KONG, Jan. 24, 2012 /PRNewswire-Asia/ -- CNOOC Limited (the "Company", NYSE: CEO, SEHK: 0883) said today that its parent company, China National Offshore Oil Corporation ("CNOOC"), has reached an agreement with China's Ministry of Agriculture and ConocoPhillips China Inc. ("COPC") to resolve fishery compensation issues for Peng Lai 19-3 oil spill incident.

(Logo: http://www.prnasia.com/xprn/sa/200701301659.jpg )

Under this agreement, COPC will put up RMB 1 billion to settle claims of losses related to marine products cultivation and natural fishery resources in the affected areas of the Hebei and Liaoning provinces. COPC and CNOOC will also designate a portion from their committed marine environmental and ecological protection funds, which are RMB 100 million and RMB 250 million, respectively, to be used for natural fishery resources restoration and preservation, fishery resources environmental monitoring and assessment, as well as related scientific research work.

As the non-Operator, the Company will continue to support and assist COPC to deal with the subsequent issues in a proper manner.

Notes to Editors:

More information about the Company is available at http://www.cnoocltd.com.

This press release includes "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of1995, including statements regarding expected future events, business prospectus or financial results. The words "believe", "intend", "expect", "anticipate", "project", "estimate", "plan", "predict" and similar expressions are intended to identify such forward-looking statements. These statements are based on assumptions and analysis made by the Company in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors that the Company believes reasonable under the circumstances. However, whether actual results and developments will meet the Company's expectations and predictions depends on a number of risks and uncertainties which could cause the actual results, performance and financial conditions to differ materially from the Company's expectations, including those associated with fluctuations in crude oil and natural gas prices, the exploration or development activities, the capital expenditure requirements, the business strategy, the highly competitive nature of the oil and natural gas industries, the foreign operations, environmental liabilities and compliance requirements, and economic and political conditions in the People's Republic of China. For a description of these and other risks and uncertainties, please see the documents the Company has filed from time to time with the United States Securities and Exchange Commission, including 2010 Annual Report on Form 20-F filed on April 29, 2011.

Consequently, all of the forward-looking statements made in this press release are qualified by these cautionary statements. The Company cannot assure that the actual results or developments anticipated will be realized or, even if substantially realized, that they will have the expected effect on the Company, its business or operations.

For further enquiries, please contact:

Ms. Ding Jianchun
Manager, Media / Public Relations
CNOOC Limited
Tel: +86-10-8452-2973
Fax: +86-10-8452-1441
E-mail: dingjch@cnooc.com.cn

Ms. Zhang Michelle
Senior Supervisor, Media / Public Relations
CNOOC Limited
Tel: +86-10-8452-6642
Fax: +86-10-8452-1441
E-mail: zhangyx12@cnooc.com.cn

Ms. Angela Hui
Ketchum Newscan Public Relations Ltd
Tel: +852-3141-8091
Fax: +852-2510-8199
E-mail: angela.hui@knprhk.com

SOURCE CNOOC Limited

ConocoPhillips Reaches Settlement Agreement Related to Bohai Bay Incidents

Wed, 25 Jan 2012 01:10:00 +0000

HOUSTON, Jan. 24, 2012 - ConocoPhillips [NYSE:COP] today announced they and the China National Offshore Oil Corp. (CNOOC) have reached an agreement with China's Ministry of Agriculture to resolve issues related to the June 2011 incidents at the Peng Lai 19-3 field in Bohai Bay. Under this agreement, RMB 1 billion (approximately $160 million) will be paid as compensation to settle public and private claims of potentially affected fishermen in relevant Bohai Bay communities. The agreement fulfills the objectives of the compensation fund announced in September 2011 by ConocoPhillips.

ConocoPhillips will also designate a portion, RMB 100 million (approximately $16 million), of the company’s previously announced environmental fund to be used to improve fishery resources. ConocoPhillips is committed to delivering on environmental stewardship as a responsible corporate citizen in China and around the world.

For more on the incidents, response and clean up efforts, go to www.conocophillips.com.cn.

ConocoPhillips Reports 2011 Organic Reserve Replacement of 120 percent

Mon, 23 Jan 2012 13:13:02 +0000

HOUSTON, Jan. 23, 2012 - ConocoPhillips [NYSE:COP] today announced preliminary 2011 organic net proved reserve additions of 738 million barrels of oil equivalent (BOE). This represents an expected organic reserve replacement ratio of 120 percent of 2011 production.

“Replacing our 2011 production with new reserves reflects the success of our strategic focus on organic growth,” said Jim Mulva, chairman and chief executive officer. “We added reserves throughout our globally diverse asset base, through focused investment on high-return opportunities.”

Reserves were added across the portfolio, including at the company’s Canadian oil sands properties at Christina Lake and Surmont; in liquids-rich U.S. shale trends, such as Eagle Ford and Bakken; in the North Sea, through expansion projects in the Ekofisk, Eldfisk and Clair developments; and in Malaysia, with sanctioning of the Kebabangan project and ongoing development of the Gumusut Field. Reserve additions were also delivered across the company’s North American conventional asset portfolio.

“With a substantial captured resource base providing significant exploitation opportunities and continued execution of major projects around the world, we remain committed to our goal to grow production and reserves,” added Mulva.

Acquisitions and dispositions are expected to reduce reserves by 45 million BOE, primarily reflecting dilution of the company’s interest in the Australia Pacific LNG project and sale of North American natural gas assets. The total reserve replacement ratio is expected to be 112 percent of 2011 production. Production for the year is expected to be 617 million BOE, including fuel gas. ConocoPhillips expects to end 2011 with 8.4 billion BOE of proved reserves.

The company will provide final information related to its 2011 oil and gas reserves and finding and development costs in its Annual Report on Form 10-K, expected to be filed with the Securities and Exchange Commission in late February.

ConocoPhillips is an integrated energy company with interests around the world. Headquartered in Houston, the company had approximately 29,700 employees, $155 billion of assets, and $247 billion of annualized revenues as of Sept. 30, 2011. For more information, go to www.conocophillips.com.

USW Supports President's Decision to Delay Keystone XL Pipeline

Fri, 20 Jan 2012 19:48:14 +0000

USW Supports President's Decision to Delay Keystone XL Pipeline

PR Newswire

Bowing to Partisan Politics Not the Right Way to Proceed, says Union

WASHINGTON, Jan. 20, 2012 /PRNewswire-USNewswire/ -- United Steelworkers (USW) International President Leo W. Gerard expressed support for the Administration's decision to challenge partisan politics and not bow to Republican pressure to prematurely approve TransCanada's permit to develop a proposed 1,700-mile pipeline. The Keystone XL Pipeline would transport crude oil and bitumen from Alberta, Canada to the Texas Gulf Coast.

(Logo: http://photos.prnewswire.com/prnh/20080131/DC12982LOGO)

"The Administration made the right decision to ensure that a project of this scale is done in a way that is good for both jobs and the environment," said Gerard. "The White House is facing forces in Congress that have decided to use this project as a litmus test for their commitment to jobs, at the same time as they have blocked the door to every one of the Administration's job proposals, but the fact is more time is needed to ensure that this project will have the economic and environmental benefits claimed by the developer."

Proponents of the pipeline estimate that the project will create 13,000 construction jobs, 7,000 manufacturing jobs and allow the U.S. to supply our oil needs with Canada, a long-standing ally instead of unstable nations.

"While the jobs projections are promising, more needs to be done to ensure that North American companies and workers will benefit," said Gerard. "We've seen too many instances where key elements of our nation's infrastructure were outsourced to foreign producers – such as the $7 billion San Francisco-Oakland Bay Bridge project that is being built using questionable steel from a state-owned Chinese company.

"That project is a slap in the face to American manufacturing workers at a time when unemployment is still high and U.S. factories are still closing. We have to make sure that if there is going to be a TransCanada pipeline, manufacturing workers will benefit by using as much North American material as possible in its construction."

The USW says that the State Department's decision to deny the current permit does not prevent the potential development and deployment of a TransCanada pipeline as the door remains open for the project to be proposed again. In fact, TransCanada, the lead company on the pipeline project, already has said it intends to re-apply for the needed permits.

"When dealing with our nation's infrastructure, we have to make sure that we tap all of our capacity and ingenuity to build and repair it," said Gerard. "That means making sure that as many of the component parts - from the pipe to the valves and cement - are made using North American materials."

Much to the dismay of our idled members at U.S. Steel's Granite City Steel facility, in 2009 TransCanada sourced most of the pipe from India for the initial stages. At that time, over 2,000 Steelworkers were laid off for lack of orders. To add insult to injury, the Indian pipe destined for the ConocoPhillips/TransCanada pipeline sat right outside the idled steel plant.

"Ensuring a domestic supply chain is our only chance to grow both the American workforce and our critical manufacturing sector," said Gerard. "When TransCanada presents its new proposal for a pipeline, the USW looks forward to working with the Administration and others to ensure that the eventual project is done in the safest and most economically beneficial way for our members and their communities," said Gerard.

The USW represents 850,000 workers in North America employed in many industries that include metals, rubber, chemicals, paper, oil refining and the service and public sectors. For more information: http://www.usw.org/.

Background Material

Click Here to read "Mixed opinions on Obama decision to deny Keystone XL pipeline permit" by Lorna Thackeray (http://assets.usw.org/releases/Mixed-opinions-on-Obama-decision.pdf)

Click Here to read "A Slap in the Face – Pipe Made in India Infuriates Unemployed Steelworkers"
(http://assets.usw.org/releases/USW-09-02ASlapInTheFace.pdf)

Click Here for "Andrea Mitchell Reports on the XL Keystone Pipeline that features studio interview with Montana Gov. Brian Schweitzer" (http://video.msnbc.msn.com/andrea-mitchell-reports/46059945#46059945)

CONTACTS:
Gary Hubbard (202) 778-4384
ghubbard@usw.org
Wayne Ranick (412) 562-2444
wranick@usw.org

SOURCE United Steelworkers (USW)

Permian Basin Royalty Trust Announces January Cash Distribution

Fri, 20 Jan 2012 18:30:00 +0000

Permian Basin Royalty Trust Announces January Cash Distribution

PR Newswire

DALLAS, Jan. 20, 2012 /PRNewswire/ -- Permian Basin Royalty Trust (NYSE: PBT) ("Permian") today declared a cash distribution to the holders of its units of beneficial interest of $.125910 per unit, payable on February 14, 2012, to unit holders of record on January 31, 2012. Permian's cash distribution history, current and prior year financial reports and tax information booklets, a link to filings made with the Securities and Exchange Commission and more can be found on its website at http://www.pbt-permianbasintrust.com/.

This month's distribution increased slightly from the previous month as the result of increased production of both oil and gas and an increase in oil prices offset by a decline in gas pricing.

This would primarily reflect production for the month of November for oil and the month of October for gas. The worldwide market conditions continue to affect the pricing for domestic production. It is difficult to predict what effect these conditions will have on future distributions.

As previously reported, ConocoPhillips, as the parent company of Burlington Resources Oil & Gas Company LP, the operator of the Waddell Ranch Properties, notified Permian's Trustee that as a result of inaccuracies in ConocoPhillips' accounting and record keeping relating to Permian's interest in proceeds from the gas plant production since January 2007, ConocoPhillips overpaid Permian approximately $5.9 million. The Trustee continues to evaluate the claim for overpayment.

Production for Waddell Ranch and the Texas Royalty Properties combined for oil and gas respectively was 53,934 bbls and 175,284 Mcf. The average price for oil was $94.44 per bbl and for gas was $7.64 per Mcf. Capital expenditures were approximately $915,774. The numbers provided reflect what was net to the Trust.

	Net to Trust Sales
	Volumes		Average Price
	Oil (bbls)	Gas (Mcf)	Oil (per bbl)	Gas (per Mcf)

Current Month	53,934	175,284	$94.44	$7.64**

Prior Month	44,017	158,627	$83.60	$8.07**

**This pricing includes sales of gas liquid products.

The 2011 tax information packets are expected to begin mailing directly to unitholders in early March 2012. A copy of Permian's 2011 tax information booklet will be posted on Permian's website by March 1, 2012. In addition to the tax booklet the Permian website will also offer two simple calculators for computing the income and expense amounts and the cost depletion. The calculators are expected to be updated with the 2011 tax information by February 1, 2012.

SOURCE Permian Basin Royalty Trust

Petroleum & Resources Announces 2011 Performance

Thu, 12 Jan 2012 21:20:58 +0000

Petroleum & Resources Announces 2011 Performance

PR Newswire

BALTIMORE, Jan. 12, 2012 /PRNewswire/ -- Petroleum & Resources Corporation (NYSE: PEO) announces the Corporation's performance for 2011.

2011 INVESTMENT RETURNS

For the twelve months ended December 31, 2011, the total return on Petroleum & Resources' net asset value, with dividends and capital gains reinvested, was 0.3%. The comparable figures for the Dow Jones U. S. Oil & Gas Index, the Dow Jones U. S. Basic Materials Index, and the Lipper Global Natural Resources Funds Index were 4.1%, -14.7%, and -16.4%, respectively. The total return on Petroleum & Resources' market value was -2.3%.

The annual distribution rate of dividends and capital gains paid to stockholders by the Corporation in 2011 was 7.1%, calculated by dividing the total dividends and capital gains distributed during the year by the average month-end market price of the Corporation's Common Stock.

NET ASSET VALUE ANNOUNCED

The net assets, shares outstanding, and net asset value per share of Petroleum & Resources at the end of 2011 compared with the prior year are:

	12/31/11	12/31/10
Net assets	$732,810,692	$761,735,503
Shares outstanding	25,641,018	24,789,698
Net asset value per share	$28.58	$30.73

SECURITIES TRANSACTIONS DURING THE FOURTH QUARTER

During the fourth quarter, the Corporation added two new names to its investment portfolio with the purchases of Molycorp, Inc. and Seadrill Ltd., and increased its holdings in Anadarko and Marathon Petroleum. One holding was eliminated from the investment list with the sale of Transocean Ltd., and the Corporation reduced its holdings in Dow Chemical, EQT, Halliburton, MDU Resources, National Fuel Gas, Newfield Exploration, Occidental Petroleum, Pioneer Natural Resources, Royal Dutch Shell, and Weatherford International.

OTHER SUMMARY FINANCIAL INFORMATION

	12/31/11	12/31/10
Unrealized appreciation	$302,253,570	$352,104,389
Net investment income	$10,208,955	$8,486,334
Net realized gain	$39,332,517	$22,810,200

Key Ratios
Net investment income to average net assets	1.29%	1.32%
Expense ratio (to average net assets)	0.56%	0.64%
Portfolio turnover	16.4%	16.8%
Net cash & short-term investments to net assets	0.0%	3.8%

TEN LARGEST EQUITY PORTFOLIO HOLDINGS (12/31/11)

	% of Net Assets
Exxon Mobil Corp.	15.7
Chevron Corp.	13.6
Schlumberger Ltd.	5.4
Occidental Petroleum Corp.	4.1
ConocoPhillips	3.5
Noble Energy, Inc.	2.9
Anadarko Petroleum Corp.	2.9
Royal Dutch Shell plc (Class A) ADR	2.7
Freeport-McMoRan Copper & Gold Inc.	2.6
National Oilwell Varco, Inc.	2.3
Total	55.7%

SECTOR WEIGHTINGS (12/31/11)

	% of Net Assets
Energy (78.3%):
Exploration & Production	22.3
Integrated Oil & Gas	37.4
Pipelines	4.0
Oil Services	14.6
Basic Materials (16.3%):
Chemicals	10.0
Industrial Metals	4.8
Mining	1.5
Utilities	5.4
Short-Term Investments	0.5

ANNUALIZED ONE, THREE AND FIVE YEAR COMPARATIVE RETURNS

Returns on net asset value (12/31/11)
	1 Year	3 Year	5 Year
Petroleum & Resources	0.3%	15.4%	3.9%
DJ U.S. Oil & Gas Index	4.1%	13.5%	4.8%
DJ U.S. Basic Materials Index	-14.7%	23.0%	4.0%
Lipper Global Natural Resources Funds Index	-16.4%	15.9%	0.7%

Petroleum & Resources Corporation is a Baltimore-based closed-end investment company. Its stock trades on the New York Stock Exchange under the ticker symbol PEO.

For further information please contact:
Lawrence L. Hooper, Jr., Vice President, General Counsel and Secretary
410-752-5900 or 800-638-2479
E-mail: contact@peteres.com
Website: www.peteres.com

For your convenience, all press releases are posted to our website. If you would like to receive future press releases by fax or e-mail, please contact us.

SOURCE Petroleum & Resources Corporation

ConocoPhillips Announces Executive Appointments

Wed, 11 Jan 2012 13:12:10 +0000

HOUSTON, Jan. 11, 2012 - ConocoPhillips [NYSE:COP] today announced additional appointments to the executive management teams for the two leading energy companies that will be created when ConocoPhillips completes its strategic repositioning, expected in the second quarter of this year.

Phillips 66, the future independent downstream company, named C.C. (Clayton) Reasor as vice president, Investor Relations, Strategy and Corporate Affairs. The new ConocoPhillips, an independent, pure-play exploration and production company, named Ellen R. DeSanctis as vice president, Investor Relations.

Reasor has more than 30 years experience in the oil and gas industry. He began his career with Phillips Petroleum Company and has held positions of increasing responsibility including president, U.S. Marketing. Reasor is currently vice president, Corporate and Investor Relations, for ConocoPhillips.

“Clayton has a wealth of knowledge and experience that will help us advance our strategy to grow Phillips 66 into an industry leading downstream company,” said Greg Garland, designated chairman and chief executive officer for Phillips 66, which will have leading businesses in refining, marketing, midstream and chemicals.

DeSanctis joins ConocoPhillips having most recently served as senior vice president, Corporate Communications, for Petrohawk Energy in Houston. She has more than 30 years in the oil and gas industry, including 15 years leading integrated corporate communication programs and investor relations.

“Ellen knows our company, she knows our stakeholders and she is a proven leader in our industry,” said Ryan Lance, designated chairman and chief executive officer of the future ConocoPhillips. “Her leadership will help us connect with investors as we establish a unique type of independent upstream company.”

ConocoPhillips’ repositioning is subject to market conditions, customary regulatory approvals, the receipt of an affirmative ruling from the U.S. Internal Revenue Service, the execution of separation and intercompany agreements and final board approval.

Significant Change in Market Needed to Save Alaska Natural Gas Line: U.S. Official at Platts Energy Podium

Tue, 10 Jan 2012 19:31:16 +0000

Significant Change in Market Needed to Save Alaska Natural Gas Line: U.S. Official at Platts Energy Podium

PR Newswire

WASHINGTON, Jan. 10, 2012 /PRNewswire/ -- The U.S. natural gas market is going to have to change dramatically for pipeline developers to salvage their plan to ship gas from Alaska to the Lower-48 states, a key federal official said today at the Platts Energy Podium.

"It is going to take a big turnaround in the market, no doubt about it," Larry Persily, federal coordinator of Alaska Natural Gas Transportation Projects, said at the newsmaker event in Washington, D.C.

TransCanada and ExxonMobil have been working with state and federal officials on plans to build a $40 billion, 48-inch-diameter pipeline from the North Slope to the Canadian border, where Canadian pipelines would carry gas to the Lower-48.

However, shale gas development has dampened U.S. demand for the gas, and North Slope producers BP, ConocoPhillips and ExxonMobil met with Alaska Governor Sean Parnell last week to discuss alternatives to the project, including a pipeline to a new liquefied natural gas (LNG) export project.

After the meeting, BP CEO Bob Dudley and ConocoPhillips CEO Jim Mulva said the LNG project seemed to be a better way to get the gas to market, casting growing doubts on the viability of the pipeline.

On Tuesday, Persily acknowledged that the pipeline's future hinges on the producers. "It is going to take concurrence of the three producers. They are the ones that control the vast majority of the leased acreage, the production coming out of there. They are the ones that are going to have to sign 20-year firm shipping commitments on the pipeline worth more than $100 billion."

Persily said he thought the project had a 50-50 chance of being constructed by 2020. "I haven't given up on the project. ... What it would take is the companies believing the market is there at a sufficient price."

He also noted that there are key benefits to building the pipeline instead of the LNG project. The Alaska Natural Gas Pipeline Act provides federal loan guarantees for the pipeline, and $21 billion worth of guarantees are currently authorized, he said. The law also allows for accelerated depreciation for the pipeline and an enhanced oil recovery investment tax credit for the gas treatment plant, which together are worth more than $1 billion in tax savings, he added.

"All that applies if you build a pipeline to move gas to the Lower-48. If it is an exclusively export-only line, unless federal law is changed, you don't get those benefits," Persily said.

Meanwhile, the United States Deputy Interior Secretary David Hayes, also speaking at the Podium event, said the U.S. is working to give Shell an answer on the company's plans to drill several exploratory wells this summer in Alaska's Beaufort and Chukchi Seas.

Hayes, who was appointed by President Obama to chair an interagency task force on Alaska energy development, said meetings at both a secretarial and staff level are being held regularly on Shell's plans.

"We are committed to give them a timely up or down," Hayes said.

The Interior Department has already given conditional approval to Shell's exploration plans for the Beaufort and Chukchi. But the company has yet to submit applications for individual permits to drill specific wells, Hayes said.

Hayes also said Interior will not budge on a condition that Shell end its drilling program about 38 days short of the time the company had requested. Hayes said the time was needed for the drilling of a relief well in the event of a blowout.

A recording of the Hayes-Persily session is available via podcast at this link:

http://platts.com/PodcastsDetail/EnergyPodium/energypodium/. You may be asked to complete a one-time-only cost-free Platts website log-in if you haven't filled one out previously.

Sponsored by Platts, a leading global energy, petrochemicals and metals information provider, Platts Energy Podium provides an ongoing forum for prominent newsmakers and the press to address important energy and environmental issues.

For more information on energy and energy policy, visit the www.platts.com.

About Platts: Founded in 1909, Platts is a leading global provider of energy, petrochemicals and metals information and a premier source of benchmark prices for the physical and futures markets. Platts' news, pricing, analytics, commentary and conferences help customers make better-informed trading and business decisions and help the markets operate with greater transparency and efficiency. Customers in more than 150 countries benefit from Platts' coverage of the carbon emissions, coal, electricity, oil, natural gas, metals, nuclear power, petrochemical, and shipping markets. A division of The McGraw-Hill Companies (NYSE: MHP), Platts is headquartered in New York with approximately 900 employees in more than 15 offices worldwide. Additional information is available at http://www.platts.com.

About The McGraw-Hill Companies: McGraw-Hill announced on September 12, 2011, its intention to separate into two public companies: McGraw-Hill Financial, a leading provider of content and analytics to global financial markets, and McGraw-Hill Education, a leading education company focused on digital learning and education services worldwide. McGraw-Hill Financial's leading brands include Standard & Poor's Ratings Services, S&P Capital IQ, S&P Indices, Platts energy information services and J.D. Power and Associates. With sales of $6.2 billion in 2010, the Corporation has approximately 21,000 employees across more than 280 offices in 40 countries. Additional information is available at http://www.mcgraw-hill.com/.

SOURCE Platts

USW Details Negative Impact of Philadelphia Refinery Shutdowns

Thu, 05 Jan 2012 23:09:52 +0000

USW Details Negative Impact of Philadelphia Refinery Shutdowns

PR Newswire

Congressional, State Hearings Sought on Likely Price Spikes, Oil Shortfalls

WASHINGTON, Jan. 5, 2012 /PRNewswire-USNewswire/ -- Three United Steelworkers (USW) local union oil refinery leaders spoke here today about the negative effects on employment and Northeast oil product supplies and prices if the three Philadelphia area refineries slated for closure are allowed to stop production permanently. They called for congressional and state hearings to investigate the matter and the replacement of U.S. oil production with oil product imports.

(Logo: http://photos.prnewswire.com/prnh/20080131/DC12982LOGO )

Sunoco announced in September that its Philadelphia and Marcus Hook, Pa., refineries would close in July 2012 if a buyer was not found. On Dec. 1 the company announced it was idling its Marcus Hook refinery because of poor margins. At the end of September, ConocoPhillips announced it was immediately idling its Trainer, Pa., refinery.

According to reports, the three refineries can process more than 700,000 barrels a day of oil, or about 46 percent of the region's refining capacity that serves nearly six million families in the Northeast region.

Among the impact issues being cited will be the fuel oil needs of the Northeast for heating, diesel, jet and auto fuel; direct employment of 2,500 workers plus thousands of other jobs dependent on the refineries; and national economic security when supplies will have to come from imports, which are subject to uncontrolled price hikes and shortages that cause price spikes.

"Why are our CEOs making permanent decisions when the refining economics affecting our three refineries are cyclical in nature?" asked USW Local 10-1 President Jim Savage. "Yes, Sunoco has lost money in eight out of the last 10 quarters but the company doesn't tell you the billions in profits that they made before that time.

"Right now domestic crude oil is cheaper than the Brent/African crude the Northeast refineries use and that is hurting our business. But five years ago it was beneficial to be a refinery on the coast because the cost of crude oil was cheaper," he added.

USW Local 10-234 President Denis Stephano said the Energy Information Administration's recent report on the effect of the refinery closures would cause a shortage of gasoline and distillates (heating oil, diesel, jet fuel), leading to price spikes. He pointed out some of the major disadvantages of alternative sources of petroleum products.

"Pipeline capacity is insufficient to make up the entire lost production volume and depending on Gulf Coast refineries to ship enough oil products to the Northeast is dicey when hurricanes hit that area of the country," Stephano said. "After Hurricanes Katrina and Rita, a number of refineries were down for six to nine months and it was the Northeast refineries that made up the slack. What happens now when this country doesn't have a back-up system in place?"

Stephano detailed how oil product imports cost American jobs and are also subject to supply shortfalls and price volatility. He urged there be congressional and state hearings.

USW Local 10-901 President Dave Miller spoke about the negative impact the refinery closures will have on the area's communities.

"These refinery shutdowns will force small businesses to close, cost local governments millions of dollars in tax revenue and force schools to operate with millions of dollars less in funding," Miller said. "We have a well-trained and experienced workforce at these refineries and we're ready to help a new owner or owners make a lot of profit."

Background on the Philadelphia-area refineries shutdowns can be found HERE.

The USW is the largest industrial union in North America and has 850,000 members in the U.S., Canada, and the Caribbean. It represents workers employed in pulp, paper and packaging, metals, rubber, chemicals, oil refining, atomic energy, government and the service sector.

Contact:
Lynne Hancock, USW Communications, o) 615-831-6782, c) 615-828-6169, lhancock@usw.org
Gary Hubbard, USW Public Affairs, o) 202-778-4384, c) 202-256-8125, ghubbard@usw.org

SOURCE United Steelworkers (USW)

ConocoPhillips to Hold Fourth-Quarter Conference Call Wednesday, January 25

Tue, 03 Jan 2012 20:13:18 +0000

HOUSTON, Jan. 3, 2012 --- ConocoPhillips [NYSE:COP] will release its fourth-quarter earnings on Wednesday, January 25 at 8:00 a.m. Eastern time. In addition, a conference call with members of company management will be held at 11 a.m. Eastern time that day.

To access the webcast of the call, go to ConocoPhillips’ Investor Relations site, www.conocophillips.com/investor, and click on the "Register for Webcast" link. You should begin this procedure at least 15-20 minutes prior to the start of the call. For those who miss the live broadcast, the event will be archived and available for replay approximately two hours following the live call. To access the archived call, go to the Investor Relations site and choose "Replay Webcast."

Oil and Gas Deal Values Total $170 Billion in 2011

Tue, 03 Jan 2012 19:50:40 +0000

Oil and Gas Deal Values Total $170 Billion in 2011

Currently over $100 billion of assets on the market

PR Newswire

HOUSTON, Jan. 3, 2012 /PRNewswire/ -- PLS, Inc. in conjunction with international partner Derrick Petroleum Services reports that the Global M&A activity for upstream oil and gas deals in 2011 totaled $170 billion in 726 deals. The data set is from our industry leading Global M&A Transactions Database and includes all upstream oil and gas deals with values disclosed.

(Logo: http://photos.prnewswire.com/prnh/20101005/DA76913LOGO-a)

(Logo: http://photos.prnewswire.com/prnh/20101005/DA76913LOGO-b)

According to Ronyld W. Wise, President of Houston-based PLS, Inc., "Total deal value in 2011 dropped 19% from 2010 record levels, yet the number of deals increased 15% to a record of 726. The relative strength of WTI and Brent oil prices, which averaged $95 and $111 per barrel, respectively, provided good fundamentals for both buyers and sellers to execute the deals. Activity in 2012 is expected to remain at a healthy pace as the industry continues to deploy large amounts of capital toward production development. Currently, we tally over $100 billion of assets on the market."

The buyers are dominated by international interests seeking to shore up longer term supply by investing in both proven conventional reserves worldwide and unconventional plays in the North America. Yashodeep Deodhar, Managing Partner, Derrick Petroleum Services, aptly points out, "The Chinese dominance in buying global oil and gas assets is highlighted by the fact that Sinopec has been the number one cash acquirer over the last three years, spending more than $35 billion between 2009 and 2011 to build a truly global footprint. Sinopec's cash was welcome in large capital intensive projects such as Repsol and Galp's pre-salt developments offshore Brazil and ConocoPhillips and Origin Energy's APLNG project in Australia. With continued healthy cash generation ($7.3 billion in H1 2011), Sinopec is expected to continue major acquisitions of global oil and gas assets, likely within unconventional shale plays worldwide, in countries such as the United States, Argentina and Poland. Today's announcement of Sinopec's $2.5 billion joint venture with Devon in five U.S. new venture plays is evidence of Sinopec's continuing acquisition strategy."

Table 1
Global Oil and Gas Deals – 2007 to 2011 Totals

Year	Deals	Value
	(#)	($ B)

2011	726	$170
2010	630	$211
2009	460	$150
2008	495	$116
2007	470	$147

While the number of deals slowed in late 2011 due to uncertainty in the world financial markets, deal values in Q4 2011 set the high mark for the year. Highlights of Q4 2011 include KKR and partners' $7.2 billion acquisition of Tulsa-based privately held Samson Investments, Kinder Morgan's acquisition of El Paso ($7.2 billion attributed to the oil and gas assets included in the deal) and Statoil's $4.7 billion purchase of Brigham Exploration.

Table 2
Global Oil and Gas Deals – Top 5 in 2011

Month	Buyer/Seller	Value ($ B)	Primary Country

July	BHP/Petrohawk	$15.1	United States
Feb.	BP/Reliance	$ 7.2	India
Oct.	Kinder Morgan/El Paso⁽¹⁾	$ 7.2	United States
Nov.	KKR et al/Samson	$ 7.2	United States
Nov.	Sinopec/Galp Energia	$ 5.2	Brazil

(1). Value of oil and gas assets only. Part of $38 billion corporate acquisition.

Globally, the United States continues to lead upstream oil and gas deal activity with a 46% share of all deals and 51% of deal value followed by Canada with 27% and 9% share, respectively. According to Anders Wittemann, Associated Partner of Derrick Petroleum Services for EMEA, "Outside of North America, Europe, including the North Sea, in 2011 was the top region and reached a record high level at $14.4 billion or 8% of global share. This activity level, achieved by an extraordinary diversity of companies, has reaffirmed the strategic value and attractiveness of portfolios in the Europe/North Sea region."

Table 3
Global Oil and Gas Deals – 2011 Totals by Regions

Region	Deals	Value
	(#)	($ B)

United States	334	$86
Canada	197	$16
Europe/North Sea	47	$14
South America	31	$13
Former Soviet Union	25	$13
Asia	18	$11
Africa	36	$10
Australia	30	$ 5
Middle East	8	$ 3
Total	726	$170

Corporate M&A activity, as opposed to asset purchases and joint ventures, represented 52% of global deal value in 2011. On a quarterly basis, corporate M&A share increased from 35% and 39% in Q1 and Q2 2011 to 65% and 62% in Q3 and Q4 2011, respectively. The high share of corporate M&A deals in the latter quarters points to the general uncertainty in the market which makes negotiating asset deals difficult. The same global trend also occurred in 2009 when the share of corporate M&A deals shot up to 73% from an average historical range of 35% to 45%.

As of January 1, 2012, the tally of upstream oil and gas assets on the market for sale stood at over $100 billion. Not surprisingly, approximately 30% of these are corporate M&A deals.

Looking forward, PLS and Derrick both expect the market for oil and gas assets to continue at a healthy pace driven in part by onshore North America's remarkable transformation from exploration, to exploitation to today's "manufacturing process," a technology that requires significant capital for full development of the resource. We expect the trend of independents such as Brigham, Petrohawk and XTO being sold to larger companies to continue especially in light of current North American gas prices and world oil prices.

Globally, growing Asian economies will continue to drive deal activity as buyers seek new oil and gas reserves and provide capital for world class exploration plays in areas such as West Africa, East Africa and Brazil deepwater.

PLS, Inc. and Derrick Petroleum Services are partners in providing U.S., Canadian and International clients with an industry leading Global and U.S. M&A database and related services. These databases are maintained 24/7 by a team of analysts and are accessible via the web.

SOURCE PLS, Inc.