16873--2/25/2010--NEXEN_INC

related topics
{gas, price, oil}
{operation, natural, condition}
{cost, regulation, environmental}
{condition, economic, financial}
{system, service, information}
{interest, director, officer}
{operation, international, foreign}
{debt, indebtedness, cash}
{regulation, change, law}
Our profitability and liquidity are highly dependent on the price of crude oil and natural gas. Weak global economic activity and fragile credit markets may negatively impact our liquidity. The inability of counterparties and joint operating partners to fulfill their obligations to us could adversely impact our results of operations. Increased environmental regulation could increase our operating costs and affect profitability. Competitive forces may limit our access to natural resources, and create labour and equipment shortages. We operate in harsh and unpredictable climates and locations where our access is regulated which could adversely impact our operations. Exploration, development and production activities may not be successful and carry a risk of loss. Unconventional gas resource plays carry additional risks and uncertainties. Our heavy oil production is more expensive and yields lower prices than light oil. Without reserve additions, our reserves and production will decline over time and we require capital to produce remaining reserves. Our reserves include undeveloped properties that require additional capital to bring them on stream. Our oil sands projects face additional risks compared to conventional oil and gas production. APPLICATION OF RELATIVELY NEW SAGD BITUMEN RECOVERY PROCESS APPLICATION OF NEW BITUMEN UPGRADING PROCESS PUBLIC PERCEPTION OF OIL SANDS DEVELOPMENT Some of our production is concentrated in a few producing assets. Our energy marketing operations expose us to the risk of trading losses and liquidity constraints. Use of marine transportation may expose us to the risk of financial loss and damaged reputation. We operate in countries with political, economic and security risks. We may be affected by changes in government rules and regulations.

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