EXXON &lt;XON> OIL AND GAS PRODUCTION ROSE IN 1986

  Exxon Corp said in its annual report
  that it raised production in 1986 although it did not replace
  all oil and gas produced.
      The company said that it added about four pct to production
  bringing it to 1.8 mln bpd, the highest level since 1979, based
  largely on increased production of oil overseas but additions
  to its reserves from new discoveries and reserve acquisitions
  did not replace all of the oil and gas produced.
      The company said that the average price for oil and gas
  declined 41 pct in 1986 from the previous year sparking a 38
  pct decline in its earnings from exploration and production.
      Exxon's earnings from exploration and production in 1986
  fell to 3.1 billion dlrs from 4.9 billion dlrs in 1985.
      Exxon said that its principal gains in production came from
  the Gulf of Mexico, Alaska, the North Sea, Malaysia and from
  oil sands in Canada.
      Exxon also said that it acquired 11.2 mln acres for
  expoloration spread over 10 countries including the U.S, Europe
  and the Far East.
      But capital expenditures for exploration and production
  were cut to 4.6 billion dlrs from 7.6 billion the previous year
  and further reductions were expected in 1987.
      Exxon said that its net share of crude oil and natural gas
  liquids produced from offshore fields in the North Sea reached
  a new high of 422,000 bpd.
      The light, sweet crudes produced from these North Sea
  fields also gave the company trading gains as Exxon was able to
  sell much of this crude and replace it with cheaper, lower
  quality crude oil for its refineries which have been upgraded
  over the past several years.
      The trading gains and lower acquisition costs gave Exxon
  more of a spread in its refinery operations and added to
  earnings gains from refining and marketing.
      Exxon said earnings from refining and marketing operations
  rose to nearly two billion dlrs in 1986, up from 872 mln dlrs
  in 1985.
      The company said petroleum sales slipped slightly to 4.043
  mln barrels per day from 4.082 mln bpd in 1985 while crude runs
  rose to 3.0 mln bpd from 2.9 mln bpd the previous year.
      Exxon's refinery operations benefited from a three year 500
  mln dlr upgrading program to its Baytown, Texas refinery
  completed last October and an 850 mln dlr upgrading project in
  Rotterdam both of which emphasize utilizing lower grade crudes
  to extract higher proportions of light products.
  

