PEAK OIL/PEAK GAS

Reuters: El Paso Trims Proven Reserves 41 Pct

HOUSTON (Reuters) - Energy company El Paso Corp. said on Tuesday it had cut its proven natural gas reserves estimate by 41 percent and would take a $1 billion pretax charge in the fourth quarter.

In reducing its proven reserves estimates, the Houston-based company joined oil major Royal Dutch/Shell Group, which shocked investors last month by cutting its reserves estimates by 20 percent

Proven reserves are quantities of oil or gas that a company expects to be commercially recoverable from known fields from a given date.

The company, which is the largest U.S. natural gas pipeline operator, also warned investors it expected more write-down charges in 2004 as natural gas prices weakened.