Production
The Corporation's oil and gas production, on a barrel-of-oil equivalent basis, was 390,000 barrels per day in the fourth quarter of 2007, an increase of 24,000 from the fourth quarter of 2006. In the fourth quarter of 2007, the Corporation's average worldwide crude oil selling price, including the effect of hedging, was $76.11 per barrel, an increase of $25.35 per barrel from the fourth quarter of 2006. The Corporation's average worldwide natural gas selling price was $6.93 per Mcf in the fourth quarter of 2007, an increase of $1.68 from the fourth quarter of 2006.
In 2006, the company produced an average of 359,000 barrels of oil equivalent per day, compared to 335,000 barrels per day in 2005. The increase in production resulted primarily from the resumption of operations in the Waha concessions (Hess 8%) in Libya, initial production from the Atlantic (Hess 25%) and Cromarty (Hess 90%) Fields in the United Kingdom North Sea and a full year of production from the Phase 1 development of the Malaysia/Thailand Joint Development Area (JDA) (Hess 50%).
In 2005, Amerada Hess produced 335,000 barrels of oil equivalent per day, compared to 342,000 barrels per day in 2004.
Reserves
Oil and gas proved reserves increased to 1,330 million barrels of oil equivalent at the end of 2007 from 1,243 million barrels at the end of 2006. During 2007, the Corporation added 234 million new barrels of oil equivalent to proved reserves. These additions, which are subject to final review, replaced approximately 167 percent of the Corporation's 2007 production and increased its reserve life to 9.5 years.
Hess Reported proved reserves of 1,243 million barrels at the end of 2006
In 2005, the company's proved reserves increased to 1.1 billion barrels of oil equivalent at year-end, and they replaced approximately 140% of our production at a finding, development and acquisition cost of about $13.60 per barrel. Reserve life improved to 8.8 years, marking the third consecutive year in which Amerada Hess has lengthened their reserve life.