Hess 2008 Annual Report Download - page 23

Download and view the complete annual report

Please find page 23 of the 2008 Hess annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 116

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116

Average selling prices and average production costs
2008 2007 2006
Average selling prices*
Crude oil (per barrel)
United States ........................................ $96.82 $69.23 $60.45
Europe ............................................ 78.75 60.99 56.19
Africa ............................................. 78.72 62.04 51.18
Asia and other ....................................... 97.07 72.17 61.52
Worldwide ........................................ 82.04 63.44 55.31
Natural gas liquids (per barrel)
United States ........................................ $64.98 $51.89 $46.22
Europe ............................................ 74.63 57.20 47.30
Worldwide ........................................ 67.61 53.72 46.59
Natural gas (per mcf)
United States ........................................ $ 8.61 $ 6.67 $ 6.59
Europe ............................................ 9.44 6.13 6.20
Asia and other ....................................... 5.24 4.71 4.05
Worldwide ........................................ 7.17 5.60 5.50
Average production (lifting) costs per barrel of oil equivalent
produced**
United States ........................................ $18.46 $13.56 $ 9.54
Europe ............................................ 17.12 14.06 10.73
Africa ............................................. 10.22 9.09 9.03
Asia and other ....................................... 8.48 8.41 6.54
Worldwide ........................................ 13.43 11.50 9.55
* Includes inter-company transfers valued at approximate market prices and the effect of the Corporation’s hedging activities.
** Production (lifting) costs consist of amounts incurred to operate and maintain the Corporation’s producing oil and gas wells, related
equipment and facilities (including lease costs of floating production and storage facilities), transportation costs and production and
severance taxes. The average production costs per barrel of oil equivalent reflect the crude oil equivalent of natural gas production converted
on the basis of relative energy content (six mcf equals one barrel).
The table above does not include costs of finding and developing proved oil and gas reserves, or the costs of
related general and administrative expenses, interest expense and income taxes.
Gross and net undeveloped acreage at December 31, 2008
Gross Net
Undeveloped
Acreage*
(In thousands)
United States ................................................... 2,919 1,971
Europe . ....................................................... 2,099 673
Africa . ....................................................... 9,979 6,464
Asia and other .................................................. 8,849 4,323
Total** ...................................................... 23,846 13,431
* Includes acreage held under production sharing contracts.
** Licenses covering approximately 33% of the Corporation’s net undeveloped acreage held at December 31, 2008 are scheduled to expire
during the next three years pending the results of exploration activities. These scheduled expirations are largely in Libya (offshore
exploration Area 54), U.S. and Egypt.
7