While global demand for energy will continue to rise, the upstream oil and gas business needs to face the reality of today’s challenges while still focusing on the long-term, and prepare for the challenges ahead, speakers told CERAWeek attendees on March 9.

The economic downturn has resulted in the number of joint ventures (JVs) announced to the markets dropping by approximately 50% in the first half of 2009 from the levels seen during 2006-2008.

A great - and still growing - divergence appeared in 2009 between public statements by leaders and their public performance. While a large part of the global population appears still transfixed by words, there is a growing perception that great fissures already rend the global strategic architecture.

After a strategic sale of certain southwest Louisiana assets, Crimson Exploration Inc. has set its sights on its Texas assets, including the red-hot Haynesville Shale, and signed drilling contracts for two rigs to be used for part of its 2010 capital program.

In an ongoing effort to right itself, Petroflow Energy Ltd. is making additional changes, including naming Kyle R. Miller to the position of CEO, transitioning the corporate headquarters to Denver, and selling its Permian Basin properties to reduce debt.

Shell has agreed to acquire Hess Corp.'s entire upstream portfolio in Gabon and its interest in the Clair field. In return, Hess would acquire Shell's interest in a pair of Norwegian offshore fields, Valhall and Hod.

Devon Energy Corp. has agreed to sell its interests in three Lower Tertiary development projects in the Gulf of Mexico to Maersk Oil for $1.3 billion.

Boulder, Colo.-based Ellora Energy Inc. is exploring strategic alternatives, including, but not limited to, a sale or merger of the company or the sale of all or a substantial part of its assets.

Forest Oil Corp. intends to sell the remainder of its Permian Basin properties in West Texas and New Mexico to SandRidge Exploration and Production LLC, for roughly $800 million.

XTO Energy Inc. has updated its price hedges for future sales of production in 2010.

W&T Offshore has established a group of commodity hedge positions as part of a risk management program to enhance its 2010 CAPEX budget.