Hess 2014 Annual Report Download - page 20

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55
2014 2013 2012
Natural gas (thousands of mcf per day)
United States
Bakken ..................................................................................................
40 38 27
Other Onshore .......................................................................................
.
47 25 27
Total Onshore ......................................................................................
.
87 63 54
Offshore ................................................................................................
.
78 61 65
Total United States ..................................................................................
.
165 124 119
Europe
N
orway ..................................................................................................
25 15 10
Denmark ................................................................................................
.
11 7 8
United Kingdom ....................................................................................
.
—1 25
36 23 43
Asia and Other
Joint Development Area of Malaysia/Thailand (JDA) ..........................
.
222 235 252
Thailand ................................................................................................
.
29 87 90
Indonesia ...............................................................................................
.
152 66
Malaysia (a) ............................................................................................
.
60 33 39
Other ......................................................................................................
.
—11 7
312 418 454
Total ........................................................................................................
.
513 565 616
Barrels of oil equivalent (per day) (b) .................................................
.
329 336 406
(a) Includes 20 mmcf, 12 mmcf, and 39 mmcf per day of production for 2014, 2013, and 2012, respectively from Block PM301 which is unitized into the
JDA.
(b) Reflects natural gas production converted on the basis of relative energy content (six mcf equals one barrel). Barrel of oil equivalence does not
necessarily result in price equivalence as the equivalent price of natural gas on a barrel of oil equivalent basis has been substantially lower than the
corresponding price for crude oil over the recent past. In addition, natural gas liquids do not sell at prices equivalent to crude oil. See the average
selling prices in the table beginning on page 9.
A description of our significant E&P operations is as follows:
United States
At December 31, 2014, 51% of the Corporation’s total proved reserves were located in the U.S. During 2014, 61% of the
Corporation’s crude oil and natural gas liquids production and 32% of its natural gas production were from U.S. operations.
The Corporation’s production in the U.S. was from offshore properties in the Gulf of Mexico and onshore properties
principally in the Bakken oil shale play in the Williston Basin of North Dakota, the Permian Basin of Texas, and the
Utica Basin of Ohio.
Onshore: The Corporation held approximately 613,000 net acres in the Bakken at December 31, 2014. During 2014, the
Corporation operated an average of 17 rigs, drilled 261 wells, completed 230 wells, and brought on production 238 wells,
bringing the total operated production wells to 982. In addition, the Corporation announced in 2014 it plans to develop future
1280-acre drilling space units (DSUs) primarily using a 7/6 spacing design whereby seven wells will be drilled into the
Middle Bakken reservoir and six wells will be drilled into the Three Forks reservoir per DSU. In 2015, the Corporation plans
to operate an average of 9.5 rigs to drill 170 wells and bring 210 wells on production while reducing capital expenditures to
$1.8 billion in 2015 from $2.2 billion in 2014. Bakken production is forecast to average between 95,000 boepd and
105,000 boepd in 2015.
In North Dakota, the Corporation owns and operates the Tioga Gas Plant. In the first quarter of 2014, the Corporation
completed an expansion of the plant that increased total processing capacity to approximately 250,000 mcf per day and
60,000 barrels per day of full NGL fractionation capabilities. The Corporation’s Tioga Rail Terminal has loading capacity of
approximately 140,000 barrels per day of crude oil and approximately 30,000 barrels per day of natural gas liquids with on-
site crude oil storage of 287,000 barrels. The Corporation also owns nine crude oil unit trains, each consisting of 104 crude
oil rail cars, all of which were constructed to American Association of Railroads Petition 1577 (CPC-1232) safety standards.
Other infrastructure includes the Ramberg Truck Facility, that is capable of delivering up to an aggregate of 130,000 barrels