UNOCAL &lt;UCL> PLANS INCREASE IN CAPITAL SPENDING

  Unocal Corp said it intends to
  increase its spending for capital projects to 929 mln dlrs in
  1987, eight pct more than the 862 mln spent in 1986.
      The company said in its annual report that it would
  increase spending for exploration and development of petroleum
  resources by about three pct to 614 mln dlrs from 1986's 595
  mln dlrs, assuming oil prices hold around current levels.
      The planned spending for exploration and production in 1987
  remains well below the 1.1 billion dlrs spent in 1985, Unocal
  said.
      The company's proved developed and undeveloped reserves of
  crude oil rose slightly in 1986, Unocal said. Net crude oil and
  condensate reserves were 752 mln bbls as of Dec 31, 1986,
  compared to 751 mln bbls at the end of 1985, Unocal said.
      The company said its net crude oil and condensate
  production averaged 248,200 barrels per day in 1986 compared to
  251,300 bpd in 1985.
      Unocal said its worldwide natural gas reserves were 6.07
  billion cubic feet in 1986 compared to 1985's 6.19 billion. Net
  natural gas output averaged 976 mln cubic feet per day in 1986,
  down 10 pct from 1985's 1,084 mln, the company said.
      Unocal said its average sales prices for crude oil was
  12.67 dlrs a barrel worldwide in 1986 compared to 23.81 dlrs in
  1985, and its average sales price for natural gas was 2.03 dlrs
  per thousand cubic feet in 1986 against 2.24 dlrs in 1985.
      Average production costs for crude oil and natural gas
  declined nearly 30 pct to 3.41 dlrs per bbl of oil equivalent
  in 1986 from 4.81 dlrs in 1985, Unocal said.
      In the annual report, the company called for imposition of
  an oil import fee by the U.S. government to set a floor price
  of about 25 dlrs a barrel for crude oil.
      "Simply stabilizing prices at about 18 dlrs per barrel    
  will not materialy slow the drop in U.S. production or the rise
  in imports," Chairman Fred Hartley said in the annual report.
      "Without decisive action in Washington, this nation will
  once again become a hostage to OPEC's plans and policies,"
  Hartley said.
  

