Gulf Keystone Boosts Estimates from Shaikan Discovery
Thursday, April 14, 2011
Gulf Keystone Petroleum Ltd.
Gulf Keystone announced a major revision of the gross oil-in-place volumes for the Shaikan discovery in the Kurdistan Region of Iraq.
The revised gross oil-in-place volumes for the Shaikan discovery, as calculated by Dynamic Global Advisors (DGA), independent Houston-based exploration consultants, are a P90 value of 4.9 billion barrels to a P10 value of 10.8 billion barrels of oil-in-place with a mean value of 7.5 billion barrels and a P1 value of 15 billion barrels.
This is a very significant upward revision from the previously announced range of 1.9 to 7.4 billion barrels of gross oil-in-place with a mean value of 4.2 billion barrels and a P1 value of 13 billion barrels, also calculated by DGA. The revision is based on the data acquired since the last resource evaluation of the Shaikan discovery by DGA issued in January 2010, which was supported by an additional third party analysis by Ryder Scott consultants with a range of gross total petroleum-initially-in-place (PIIP) of 1.52 (P90) to 7.52 (P10) billion barrels.
The new data has been acquired as a result of:
* Shaikan-2 oil discovery and well test in the upper section of the Jurassic section, nine km to the east of Shaikan-1
* Shaikan-1 extended well test production
* Shaikan-3 testing and production results
* Preliminary results of the analysis of 3D seismic data acquired for the Shaikan (599km²) and Sheikh Adi (215km²) blocks
* Evaluation of existing seismic lines and regional geological data for the Ber Bahr, Akri-Bijeel (Bijeel-1 well) and Sheikh Adi blocks.
* PVT (pressure, volume, temperature) analysis of oil samples from the Triassic Kurre Chine tests at Shaikan-1.
The Shaikan-2 appraisal well is now drilling deeper into the Jurassic and is scheduled to drill on into the Triassic. Once the well reaches TD at the bottom of the Triassic or into the top of the Permian interval, the Company will consider a possible further revision of the Shaikan oil-in-place volumes, taking into account additional information from the reservoirs previously only penetrated by Shaikan-1 and from potential additional discoveries from possible zones below those reached by Shaikan-1, projected by DGA to contain an additional 1 to 5 billion barrels of prospective resources.
John Gerstenlauer, Gulf Keystone's Chief Operating Officer, commented, "We have always believed that the initial gross oil-in-place range for the Shaikan discovery was a conservative estimate that would increase as more information became available. This gross oil-in-place volumes revision by DGA, entirely supported by the Company's management and Board of Directors, confirms that belief. We eagerly look forward to additional drilling results from Shaikan-2, the soon to be spudded Shaikan-4 and the remainder of the Shaikan appraisal drilling program. We firmly believe that even with this upward revision the numbers for the Shaikan discovery are still conservative."
Showing posts with label gross. Show all posts
Showing posts with label gross. Show all posts
Thursday, April 14, 2011
Statoil Strikes Oil Offshore Brazil
Statoil Strikes Oil Offshore Brazil
Thursday, April 14, 2011
Statoil
A new oil find has been made by Statoil immediately adjacent the Peregrino field in the Campos Basin offshore Brazil.
An exploration well drilled in the Peregrino South structure a few kilometers south of Peregrino has encountered oil in sandstones of the Carapebus geological formation.
A significant gross oil column of 130 meters has been proven in the well and further work will be performed to confirm the volumes.
The drilling operation is still ongoing to penetrate deeper reservoir units and explore additional upside potential below the main reservoir unit.
Significant upside
"The results confirm the significant potential in the Peregrino area and underline the beliefs we have had in the upside,” said Tim Dodson, executive vice president for Exploration in Statoil.
"The well verifies the upside potential and will together with the Peregrino Southwest discovery from 2007 play an important role in further development of the Peregrino area."
"The results will indeed be implemented into our plans for further development of the field," said Kjetil Hove, head of Statoil's Brazil activities and vice president in the company's Development and Production International business area.
Following the completion of the Peregrino South well, one additional appraisal well in the Peregrino Southwest structure will be drilled to conclude the overall size of the new development.
Peregrino start-up
Oil production from the Peregrino field started last week and will gradually ramp up to a plateau of 100,000 barrels of oil equivalent per day, making Statoil an important long-term operator and partner in Brazil's growing oil and gas industry.
The initial development of the field is estimated to contain 300 to 600 recoverable million barrels of oil equivalents, and the new discovery will add additional volumes going forward.
Drilling of the well is being carried out by the Blackford Dolphin rig at a water depth of 120 meters.
Operated by Statoil, the Peregrino field is 85 kilometers off the Brazilian coast from Rio de Janeiro. In May 2010 Statoil sold a 40% stake of the Peregrino field to the Sinochem Group. Statoil holds 60% ownership and the operatorship of the field and Sinochem the remaining 40%. The closing of the transaction is pending governmental approvals.
Thursday, April 14, 2011
Statoil
A new oil find has been made by Statoil immediately adjacent the Peregrino field in the Campos Basin offshore Brazil.
An exploration well drilled in the Peregrino South structure a few kilometers south of Peregrino has encountered oil in sandstones of the Carapebus geological formation.
A significant gross oil column of 130 meters has been proven in the well and further work will be performed to confirm the volumes.
The drilling operation is still ongoing to penetrate deeper reservoir units and explore additional upside potential below the main reservoir unit.
Significant upside
"The results confirm the significant potential in the Peregrino area and underline the beliefs we have had in the upside,” said Tim Dodson, executive vice president for Exploration in Statoil.
"The well verifies the upside potential and will together with the Peregrino Southwest discovery from 2007 play an important role in further development of the Peregrino area."
"The results will indeed be implemented into our plans for further development of the field," said Kjetil Hove, head of Statoil's Brazil activities and vice president in the company's Development and Production International business area.
Following the completion of the Peregrino South well, one additional appraisal well in the Peregrino Southwest structure will be drilled to conclude the overall size of the new development.
Peregrino start-up
Oil production from the Peregrino field started last week and will gradually ramp up to a plateau of 100,000 barrels of oil equivalent per day, making Statoil an important long-term operator and partner in Brazil's growing oil and gas industry.
The initial development of the field is estimated to contain 300 to 600 recoverable million barrels of oil equivalents, and the new discovery will add additional volumes going forward.
Drilling of the well is being carried out by the Blackford Dolphin rig at a water depth of 120 meters.
Operated by Statoil, the Peregrino field is 85 kilometers off the Brazilian coast from Rio de Janeiro. In May 2010 Statoil sold a 40% stake of the Peregrino field to the Sinochem Group. Statoil holds 60% ownership and the operatorship of the field and Sinochem the remaining 40%. The closing of the transaction is pending governmental approvals.
Wednesday, April 13, 2011
LNG Energy to Sell Ok. Acreage
LNG Energy to Sell Ok. Acreage
Wednesday, April 13, 2011
LNG Energy Ltd.
LNG Energy's subsidiary, BWB Exploration, has entered into an agreement to sell all of its working interest in approximately 2,800 net acres of oil and gas lease holdings in Carter County, Oklahoma to an undisclosed buyer for approximately US $5,180,000 in cash subject to final adjustments. The sale is expected to close on or before May 2, 2011.
"We continue to focus on our core areas in Poland and Papua New Guinea. This disposition follows our recent acquisition in Poland where we acquired about 180,000 net acres and now have exposure to a 1.1 million acre gross position in the Polish Baltic Basin," commented Dave Afseth, President & CEO of LNG.
Poland Operational Update
The second well being drilled, Lebork S-1 on the Slupsk Concession has been drilled to 3,517m, with 227m of open hole core already taken. It is anticipated that the drilling and logging will be completed in the next week. The core will be analyzed over the coming weeks. The majority of the analysis of the sidewall cores from the Wytowno S-1 well are expected to be received back from the subcontractor in May 2011. The 1st well on the Starogard concession is expected to be spudded in June 2011.
LNG is a Canadian exploration and development company focused on developing oil and gas reserves in Papua New Guinea, Poland and the US. LNG holds a 100% interest in approximately 5.5 million acres of prospective oil and gas properties in Papua New Guinea. LNG has a 50% net interest in approximately 360,000 gross acres of prospective shales in Poland together with Realm Energy (BVI). LNG also has a 20% net interest in approximately 734,000 gross acres of prospective shales in Poland together with BNK Petroleum Inc., Sorgenia E&P S.p.A., and Rohol-Aufsuchungs Aktiengesellschaft, and a 100% net interest in BWB Exploration, LLC ("BWB"), which holds approximately 2,800 acres of oil and gas leases in Carter County, Oklahoma and an estimated 28,757 acres of leases in the Black Warrior Basin of Mississippi and Alabama. LNG shares trade on the TSX Venture Exchange under the symbol "LNG".
Wednesday, April 13, 2011
LNG Energy Ltd.
LNG Energy's subsidiary, BWB Exploration, has entered into an agreement to sell all of its working interest in approximately 2,800 net acres of oil and gas lease holdings in Carter County, Oklahoma to an undisclosed buyer for approximately US $5,180,000 in cash subject to final adjustments. The sale is expected to close on or before May 2, 2011.
"We continue to focus on our core areas in Poland and Papua New Guinea. This disposition follows our recent acquisition in Poland where we acquired about 180,000 net acres and now have exposure to a 1.1 million acre gross position in the Polish Baltic Basin," commented Dave Afseth, President & CEO of LNG.
Poland Operational Update
The second well being drilled, Lebork S-1 on the Slupsk Concession has been drilled to 3,517m, with 227m of open hole core already taken. It is anticipated that the drilling and logging will be completed in the next week. The core will be analyzed over the coming weeks. The majority of the analysis of the sidewall cores from the Wytowno S-1 well are expected to be received back from the subcontractor in May 2011. The 1st well on the Starogard concession is expected to be spudded in June 2011.
LNG is a Canadian exploration and development company focused on developing oil and gas reserves in Papua New Guinea, Poland and the US. LNG holds a 100% interest in approximately 5.5 million acres of prospective oil and gas properties in Papua New Guinea. LNG has a 50% net interest in approximately 360,000 gross acres of prospective shales in Poland together with Realm Energy (BVI). LNG also has a 20% net interest in approximately 734,000 gross acres of prospective shales in Poland together with BNK Petroleum Inc., Sorgenia E&P S.p.A., and Rohol-Aufsuchungs Aktiengesellschaft, and a 100% net interest in BWB Exploration, LLC ("BWB"), which holds approximately 2,800 acres of oil and gas leases in Carter County, Oklahoma and an estimated 28,757 acres of leases in the Black Warrior Basin of Mississippi and Alabama. LNG shares trade on the TSX Venture Exchange under the symbol "LNG".
Beach Discovers Oil at Butlers Well
Beach Discovers Oil at Butlers Well
Wednesday, April 13, 2011
Beach Energy Ltd.
Beach had its third success from as many wells in its 16 well operated program in the Western Flank of the Cooper Basin with the Butlers-2 well encountering a five meter oil column. The Butlers-2 well is located 950 meters NE of the Butlers-1 discovery well.
The Butlers-2 oil column was encountered in the Namur Sandstone reservoir and was consistent with pre-drill expectations. The large step-out will result in an upgrade of recoverable oil reserves from the Butlers Field of approximately 1.5 million barrels (gross), subject to remapping and a detailed review of the well data. Beach will announce a firmer reserve assessment as appropriate data becomes available.
Butlers-2 is is expected to be on-line around mid-July after completion of the new Butlers oil facility. Oil from the Butlers Field is transported from the Western Flank by flowline to Moomba. The success at Butlers-2 is likely to lead to additional development drilling in the Butlers Field. The Ensign#30 rig will now be moved to the Butlers-3 development well location which is located about 320 meters to the NW of Butlers-1.
Participants in PEL 92 are:
* Beach 75% (Operator)
* Cooper Energy Limited 25%
Wednesday, April 13, 2011
Beach Energy Ltd.
Beach had its third success from as many wells in its 16 well operated program in the Western Flank of the Cooper Basin with the Butlers-2 well encountering a five meter oil column. The Butlers-2 well is located 950 meters NE of the Butlers-1 discovery well.
The Butlers-2 oil column was encountered in the Namur Sandstone reservoir and was consistent with pre-drill expectations. The large step-out will result in an upgrade of recoverable oil reserves from the Butlers Field of approximately 1.5 million barrels (gross), subject to remapping and a detailed review of the well data. Beach will announce a firmer reserve assessment as appropriate data becomes available.
Butlers-2 is is expected to be on-line around mid-July after completion of the new Butlers oil facility. Oil from the Butlers Field is transported from the Western Flank by flowline to Moomba. The success at Butlers-2 is likely to lead to additional development drilling in the Butlers Field. The Ensign#30 rig will now be moved to the Butlers-3 development well location which is located about 320 meters to the NW of Butlers-1.
Participants in PEL 92 are:
* Beach 75% (Operator)
* Cooper Energy Limited 25%
Thursday, April 7, 2011
Bankers Boosts Production in 4Q10
Bankers Boosts Production in 4Q10
Thursday, April 07, 2011
Bankers announced the following operational update:
The Patos-Marinza first quarter average oil price was US$68.06 per barrel (representing 65% of the Brent oil price) an increase of 28%, compared to the fourth quarter's average oil price of US$53.12 per barrel (61% of Brent).
The fourth drilling rig is expected to arrive in Albania later this month and scheduled to commence drilling in May 2011. With strong oil prices, the Company is also sourcing a fifth drilling rig and expects to have one available in the fourth quarter of 2011. The additional rig capacity will support the Company's strategic drilling objectives of wells targeted for production growth and other wells planned for reserves expansion, the thermal pilot and for exploration and water disposal drilling.
With the recent Company announcement to acquire the remaining 140 active Albpetrol wells and sole operatorship of the Patos-Marinza oilfield, Bankers will have a larger inventory of reactivation candidates for the 2011 capital program and for the following few years.
The current production split is 7,700 bopd from new horizontal wells and 5,850 bopd from the original reactivated vertical wells. Ongoing reactivated production from the old vertical wells is offsetting primary production declines and maintaining the old vertical wells base production. Primary production growth is forecast to be achieved from the new horizontal wells drilling program.
Seismic reprocessing and interpretation on Block "F" is progressing and drilling of the first gas exploration well is expected in the third quarter. Several structural and stratigraphic prospects have been identified.
Construction on the first phase of the crude oil sales pipeline, which connects the Patos-Marinza oilfield to the storage and loading Fier Hub facility, is progressing and the project is scheduled for third quarter 2011 completion.
Construction of the third and fourth oil treating train expansion of the Central Treatment Facility (CTF) has commenced. The addition of the new processing facilities should be completed by the fourth quarter 2011 and the expanded CTF will be able to handle over 25,000 bopd of net oil production.
Construction of a bridge over the Seman River in the northern area of the Patos-Marinza oilfield has commenced with completion expected in the third quarter of 2011, in time to begin a larger drilling and re-activation program in the higher productivity area north of the river.
Thursday, April 07, 2011
Bankers Petroleum Ltd.
Bankers announced the following operational update:
Production and Oil Price
Oil sales from the Patos-Marinza oilfield in Albania during the first quarter averaged 11,894 bopd compared to fourth quarter sales of 10,424 bopd, an increase of 14%. Average production for the first quarter was 12,147 bopd and oil inventory on March 31, 2011 was approximately 168,000 barrels. Current production is 13,550 bopd. Gross sales achieved record levels for March, averaging 15,247 bopd.The Patos-Marinza first quarter average oil price was US$68.06 per barrel (representing 65% of the Brent oil price) an increase of 28%, compared to the fourth quarter's average oil price of US$53.12 per barrel (61% of Brent).
Drilling Update
Sixteen (16) horizontal wells have been drilled during the first quarter. Thirteen (13) of these wells have been completed and are on production, two (2) drilled late in March will be placed on production this month, and one (1) drilled early in the quarter has water encroachment concerns that are being mitigated with continuing water control activities. Production rates from the last thirteen (13) horizontal wells drilled is averaging 175 bopd per well with strong initial production from the Driza (D1) sands averaging in excess of 200 bopd per well. Average production for all horizontal wells is 130 bopd per well at the end of the first quarter.The fourth drilling rig is expected to arrive in Albania later this month and scheduled to commence drilling in May 2011. With strong oil prices, the Company is also sourcing a fifth drilling rig and expects to have one available in the fourth quarter of 2011. The additional rig capacity will support the Company's strategic drilling objectives of wells targeted for production growth and other wells planned for reserves expansion, the thermal pilot and for exploration and water disposal drilling.
Well Reactivations
Reactivation and recompletion work resumed in the first quarter with eight (8) wells on production. Current production from these wells is 250 bopd and improving.With the recent Company announcement to acquire the remaining 140 active Albpetrol wells and sole operatorship of the Patos-Marinza oilfield, Bankers will have a larger inventory of reactivation candidates for the 2011 capital program and for the following few years.
The current production split is 7,700 bopd from new horizontal wells and 5,850 bopd from the original reactivated vertical wells. Ongoing reactivated production from the old vertical wells is offsetting primary production declines and maintaining the old vertical wells base production. Primary production growth is forecast to be achieved from the new horizontal wells drilling program.
Thermal Program & Exploration Block "F"
Road access and site construction plans are underway for the drilling and thermal facilities project. All necessary materials and equipment are in country. Drilling of the one (1) delineation and two (2) thermal wells will commence in May and first steam injection is scheduled for July 2011.Seismic reprocessing and interpretation on Block "F" is progressing and drilling of the first gas exploration well is expected in the third quarter. Several structural and stratigraphic prospects have been identified.
Infrastructure Development
Construction of 80,000 barrels of additional storage at the Petrolifera Terminal at the Port of Vlore is now complete and fully operational. Bankers' total port storage capacity from three tanks is 160,000 barrels and the Company will now be able to handle export shipments of up to 25,000 metric tonnes in a single cargo.Construction on the first phase of the crude oil sales pipeline, which connects the Patos-Marinza oilfield to the storage and loading Fier Hub facility, is progressing and the project is scheduled for third quarter 2011 completion.
Construction of the third and fourth oil treating train expansion of the Central Treatment Facility (CTF) has commenced. The addition of the new processing facilities should be completed by the fourth quarter 2011 and the expanded CTF will be able to handle over 25,000 bopd of net oil production.
Construction of a bridge over the Seman River in the northern area of the Patos-Marinza oilfield has commenced with completion expected in the third quarter of 2011, in time to begin a larger drilling and re-activation program in the higher productivity area north of the river.
Kuçova
The Plan of Development (PoD) for the field has been approved by the Albanian authorities. The PoD has a 25 year term plus Company elected extensions for further development and production of the field. Activity has commenced as part of the approved 2011 work program on the first group of wells with re-completion of two production wells, one water source well and the conversion of one water injection well. Water injection is expected to commence during the second quarter.Monday, April 4, 2011
Beach Boasts Results for Western Flank Campaign
Beach Boasts Results for Western Flank Campaign
Monday, April 04, 2011
Monday, April 04, 2011
Beach Energy Ltd.
Beach has obtained excellent results from the first two wells drilled of its 16 well operated program in the Western Flank area.
In late February, the Parsons-3 oil development well encountered a 9 meter oil column. This result has now been immediately followed by a second success at Parsons-4, where a 5.5 meter column of oil was encountered in line with pre-drill prognosis. Both wells intersected excellent quality Namur sandstone reservoirs and have been completed for production and early tie-in to the Parsons facility. Following completion and perforation, Parsons-3 flowed over 5000 barrels of oil per day during clean up. No water was produced. This well is expected to be on-line around mid April with Parsons-4 shortly thereafter.
The success at Parsons will increase daily gross production from the PEL 92 area to around 6000 barrels of oil per day (gross). Beach expects to book additional reserves for the Parsons field following these results, the quantity of which is currently being assessed.
Oil from the Parsons field is transported from the Western Flank by flowline to Moomba via Tantanna and thus is not at risk from flooding in the area.
The Ensign #30 rig will now move to the Butlers-2 location. The well to be drilled will appraise the northerly extent of the Butlers oilfield and facilitate development planning and production optimization. A successful result at Butlers-2 has the potential to add up to 2 million barrels of oil (gross).
The Ensign #18 rig is currently moving across the Cooper Creek via the Kudnarri Bridge into PEL 91. The rig is expected to be 100% on location at Hanson-1 by the middle of this week and will commence drilling after a short maintenance and repair period of one to two weeks.
Hanson-1 is the first of a five well exploration campaign for the PEL 91 joint venture.
A further flood pulse is expected in the PEL 91 and PEL 92 areas in mid April, however Beach has established a remote operations base at Gunyah on the western side of the Cooper Creek to enable drilling operations to continue unaffected.
In late February, the Parsons-3 oil development well encountered a 9 meter oil column. This result has now been immediately followed by a second success at Parsons-4, where a 5.5 meter column of oil was encountered in line with pre-drill prognosis. Both wells intersected excellent quality Namur sandstone reservoirs and have been completed for production and early tie-in to the Parsons facility. Following completion and perforation, Parsons-3 flowed over 5000 barrels of oil per day during clean up. No water was produced. This well is expected to be on-line around mid April with Parsons-4 shortly thereafter.
The success at Parsons will increase daily gross production from the PEL 92 area to around 6000 barrels of oil per day (gross). Beach expects to book additional reserves for the Parsons field following these results, the quantity of which is currently being assessed.
Oil from the Parsons field is transported from the Western Flank by flowline to Moomba via Tantanna and thus is not at risk from flooding in the area.
The Ensign #30 rig will now move to the Butlers-2 location. The well to be drilled will appraise the northerly extent of the Butlers oilfield and facilitate development planning and production optimization. A successful result at Butlers-2 has the potential to add up to 2 million barrels of oil (gross).
The Ensign #18 rig is currently moving across the Cooper Creek via the Kudnarri Bridge into PEL 91. The rig is expected to be 100% on location at Hanson-1 by the middle of this week and will commence drilling after a short maintenance and repair period of one to two weeks.
Hanson-1 is the first of a five well exploration campaign for the PEL 91 joint venture.
A further flood pulse is expected in the PEL 91 and PEL 92 areas in mid April, however Beach has established a remote operations base at Gunyah on the western side of the Cooper Creek to enable drilling operations to continue unaffected.
Wednesday, March 30, 2011
Credit Suisse Lowers U.S. GDP Forecasts for First Half 2011
Credit Suisse Lowers U.S. GDP Forecasts for First Half 2011
Credit Suisse has revised down its U.S. GDP forecasts for the first half of 2011. The firm now expects 2.5% real GDP growth in Q1, down from its previous forecast of 3.5%. Its Q2 forecast was also revised down to 3.3% from 3.7%. However, the firm's 2011 second half forecasts remain unaltered at 3.8% and 4.0% for Q3 and Q4, respectively. Credit Suisse expects full year 2011 growth of 3.4% on a year-over-year basis and 3% on an annual average basis. This is down from its previous estimate of 3.8% and 3.3%, respectively. The firm sees 4.0% real GDP growth in 2012.
Credit Suisse issued a statement saying: The first quarter's forecast revision is mostly due to current quarter accounting. The monthly building blocks that add up to GDP have consistently printed below expectations this quarter, defying the much rosier readings from other parallel evidence on the economy (such as the ISM surveys). The list of GDP "source data" disappointments includes home sales, housing starts, capital goods shipments, non-residential construction, federal spending, and a sharp increase in the trade deficit. Most importantly, the GDP's largest building block - consumer spending - is slowing sharply on a sequential basis, on track for less than 2% growth in Q1, compared to 4% growth in Q4. Our revision to second quarter growth is partly a consequence of higher oil prices and the negative effect on real income growth. Consumer confidence gauges also fell sharply in March, presumably due to higher gasoline prices. Another reason for our Q2 downgrade is housing, particularly the 22% plunge in February housing starts. Falling starts will impact future readings on construction outlays and the associated GDP component - residential investment.
Credit Suisse has revised down its U.S. GDP forecasts for the first half of 2011. The firm now expects 2.5% real GDP growth in Q1, down from its previous forecast of 3.5%. Its Q2 forecast was also revised down to 3.3% from 3.7%. However, the firm's 2011 second half forecasts remain unaltered at 3.8% and 4.0% for Q3 and Q4, respectively. Credit Suisse expects full year 2011 growth of 3.4% on a year-over-year basis and 3% on an annual average basis. This is down from its previous estimate of 3.8% and 3.3%, respectively. The firm sees 4.0% real GDP growth in 2012.
Credit Suisse issued a statement saying: The first quarter's forecast revision is mostly due to current quarter accounting. The monthly building blocks that add up to GDP have consistently printed below expectations this quarter, defying the much rosier readings from other parallel evidence on the economy (such as the ISM surveys). The list of GDP "source data" disappointments includes home sales, housing starts, capital goods shipments, non-residential construction, federal spending, and a sharp increase in the trade deficit. Most importantly, the GDP's largest building block - consumer spending - is slowing sharply on a sequential basis, on track for less than 2% growth in Q1, compared to 4% growth in Q4. Our revision to second quarter growth is partly a consequence of higher oil prices and the negative effect on real income growth. Consumer confidence gauges also fell sharply in March, presumably due to higher gasoline prices. Another reason for our Q2 downgrade is housing, particularly the 22% plunge in February housing starts. Falling starts will impact future readings on construction outlays and the associated GDP component - residential investment.
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