Unocal Forecast Sees Growth in Oil, Gas Production

Unocal Corporation said it expects the company's worldwide average net crude oil and natural gas production to rise 44 percent to nearly 700,000 boepd by 2004. The updated outlook reflects a 7.6-percent annual growth in net worldwide production from an estimated 485,000 boepd in 1999. Earlier, the company's forecast profile was for 2004 production of 918,000 boepd. This earlier forecast was heavily weighted toward increases in the years 2002 to 2004. "We have revised our production forecast as a result of a change in our philosophy, especially with respect to the later year projections, as well as to reflect factors that may delay certain projects," said Roger C. Beach, Unocal chairman and CEO. Beach explained the company has taken a more conservative approach to its production forecasting and included only anticipated production associated with established discoveries. Expected production from discoveries in the deepwater or other frontier areas requiring additional drilling, approvals or sales contracts, has been excluded from the latest forecast. "We have focused on an operating plan to increase our worldwide production to about 540,000 boepd in 2001, 11 percent above the estimated 1999 average daily production level," Beach said. "Over the longer term, we still foresee strong production growth, with upside potential above this forecast contingent upon additional exploration drilling successes or more favorable market conditions."