912750--2/26/2010--NEWFIELD_EXPLORATION_CO_/DE/

related topics
{gas, price, oil}
{cost, regulation, environmental}
{operation, international, foreign}
To maintain and grow our production and cash flow, we must continue to develop existing reserves and locate or acquire new oil and gas reserves. Actual quantities of oil and gas reserves and future cash flows from those reserves will most likely vary from our estimates. There is limited refining capacity for our black wax crude oil, which may limit our ability to sell our current production or to increase our production at Monument Butte in the Uinta Basin. Lower oil and gas prices and other factors have resulted in ceiling test writedowns in the past and may in the future result in additional ceiling test writedowns or other impairments. Drilling is a high-risk activity. The oil and gas business involves many operating risks that can cause substantial losses, and insurance may not protect us against all of these risks. Exploration in deepwater involves significant financial risks, and we may be unable to obtain the drilling rigs or support services necessary for our deepwater drilling and development programs in a timely manner or at acceptable rates. We are subject to complex laws that can affect the cost, manner or feasibility of doing business. In addition, potential regulatory actions could increase our costs and reduce our liquidity, delay our operations or otherwise alter the way we conduct our business. The marketability of our production is dependent upon transportation and processing facilities over which we may have no control. We have risks associated with our non-U.S. operations.

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