1163165--2/22/2008--CONOCOPHILLIPS

related topics

{gas, price, oil}

{operation, natural, condition}

{cost, regulation, environmental}

{investment, property, distribution}

{condition, economic, financial}

Estimates of crude oil and natural gas reserves depend on many factors and assumptions, including various assumptions that are based on conditions in existence as of the dates of the estimates. Any material changes in those conditions or other factors affecting those assumptions could impair the quantity and value of our crude oil and natural gas reserves. If we are unsuccessful in acquiring or finding additional reserves, our future crude oil and natural gas production would decline, thereby reducing our cash flows and results of operations, negatively impacting our financial condition. Crude oil price increases and environmental regulations may reduce our refined product margins. We expect to continue to incur substantial capital expenditures and operating costs as a result of our compliance with existing and future environmental laws and regulations. Likewise, future environmental laws and regulations may impact or limit our current business plans and/or reduce demand for our products. As a result, our business, financial condition, results of operations and cash flows in future periods could be materially adversely affected. Worldwide political and economic developments could damage our operations and materially reduce our profitability and cash flows. Changes in governmental regulations may impose price controls and limitations on production of crude oil and natural gas. Our operations are subject to business interruptions and casualty losses, and we do not insure against all potential losses, so we could be seriously harmed by unexpected liabilities. Our investments in joint ventures decrease our ability to manage risk.

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