Phillips reports improved prices for crude oil, natural gas in second quarter

Petroleum News Alaska Staff

In a July 3 interim second quarter report Phillips Petroleum Co. said benchmark prices for crude oil and Lower 48 natural gas improved over the first quarter. Production volumes were lower, but in line with expectations. Second quarter results are expected out July 23. Benchmark prices for Alaska North Slope crude on the U.S. West Coast averaged $25.01, up from $19.90 in the first quarter but down from $26.02 in the second quarter 2001. Phillips said its actual realizations may vary from benchmark due to items such as differentials for quality and location.

West Texas Intermediate benchmark prices averaged $26.27 for the second quarter, up from $21.56 for the first quarter, but down from $27.86 for the second quarter 2001.

The Henry Hub daily average was $3.36 per thousand cubic feet in the second quarter, up from $2.52 an mcf in the first quarter but down from $4.37 an mcf in the second quarter 2001.

Phillips said second quarter production in barrels of oil equivalent per day is expected to be at or near the company’s second-quarter daily target of 800,000 boe/d, below the first quarter due to normal seasonal declines and curtailments due to restrictions.