Falklands : Falklands Energy Prices Soar as Oil Price Falls
Submitted by Falkland Islands News Network (Juanita Brock) 10.11.2005 (Article Archived on 24.11.2005)
Hydrocarbons products were bought at a high price.
FALKLANDS ENERGY PRICES SOAR AS OIL PRICE FALLS
By J. Brock (FINN)
When the price of crude oil rose above $70.00 per barrel, energy prices in the Falklands almost immediately changed to reflect having to buy hydrocarbons products at higher prices. That was on August 30th. However the price of crude has dropped since then to a low today of $58.93 – some $11.07 lower than the August high. Further to this, it is anticipated that the price of crude will lower to between $45.00 and $55.00 per barrel – a more manageable price.
Stock markets find the news encouraging – but not so for the major oil companies who are feeling the pinch.
People will be asking why their energy costs are not going down and the simple answer is that when stocks of hydrocarbons products were purchased the price was high and the cost was calculated in the energy bill to the individual customer. It is possible for a reduction of energy costs here should hydrocarbons products be bought at a lower price – that is if the price of crude doesn’t rise while we are using up products bought at the higher price. Islanders hope that isn’t the scenario.
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