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PART I
Items 1 and 2. Business and Properties
Hess Corporation (the Registrant) is a Delaware corporation, incorporated in 1920. The Registrant and its
subsidiaries (collectively referred to as the Corporation or Hess) is a global integrated energy company that operates
in two segments, Exploration and Production (E&P) and Marketing and Refining (M&R). The E&P segment
explores for, develops, produces, purchases, transports and sells crude oil and natural gas. These exploration and
production activities take place principally in Algeria, Australia, Azerbaijan, Brazil, Denmark, Egypt, Equatorial
Guinea, Gabon, Ghana, Indonesia, Libya, Malaysia, Norway, Peru, Russia, Thailand, the United Kingdom and the
United States. The M&R segment manufactures, purchases, transports, trades and markets refined petroleum
products, natural gas and electricity. The Corporation owns 50% of a refinery joint venture in the United States
Virgin Islands, and another refining facility, terminals and retail gasoline stations, most of which include
convenience stores, located on the East Coast of the United States.
Exploration and Production
The Corporation’s total proved reserves at December 31 were as follows:
2008 2007 2008 2007 2008 2007
Crude Oil
and
Natural Gas
Liquids Natural Gas
Total Barrels of
Oil
Equivalent
(BOE)*
(Millions of barrels) (Millions of mcf) (Millions of barrels)
United States ........... 227 204 276 270 273 249
Europe................ 332 329 639 656 438 438
Africa ................ 324 285 69 87 336 300
Asia and other .......... 87 67 1,789 1,655 385 343
970 885 2,773 2,668 1,432 1,330
* Reflects natural gas reserves converted on the basis of relative energy content (six mcf equals one barrel).
On a barrel of oil equivalent (boe) basis, 43% of the Corporation’s worldwide proved reserves are undeveloped
at December 31, 2008 (44% at December 31, 2007). Proved reserves held under production sharing contracts at
December 31, 2008 totaled 28% of crude oil and natural gas liquids and 58% of natural gas reserves (25% and 57%
respectively, at December 31, 2007).
Worldwide crude oil, natural gas liquids and natural gas production was as follows:
2008 2007 2006
Crude oil (thousands of barrels per day)
United States
Onshore. . .................................................. 17 15 15
Offshore . .................................................. 15 16 21
32 31 36
Europe
United Kingdom ............................................. 29 38 50
Norway . . .................................................. 16 19 22
Denmark . .................................................. 11 12 19
Russia . . . .................................................. 27 24 18
83 93 109
2