Falklands : Hydrocarbons Daily Record (07/07/06)
Submitted by Falkland Islands News Network (Juanita Brock) 08.07.2006 (Article Archived on 22.07.2006)
It has been announced today that nine oil companies want to do business in Colombia.
HYDROCARBONS DAILY RECORD: FRIDAY, 07 JULY 2006
By J. Brock (FINN)
At 1800 LMT on Friday, 07 July 2006 Light Sweet Crude was down 1.05 Cents and settled at $74.09 on the New York Mercantile Exchange and Brent Crude dropped 57 cents to $73.51 per barrel on London’s ICE Futures Exchange.
TRENDS:
Today’s prices reflect continued nervousness in the Middle East, with heightened tension not only in the Gaza Strip but also in Afghanistan, where the Taliban have increased pressure on British troops sent to protect the civilian population. The second indicator remains the demand for gasoline in the United States. This has increased since the summer holiday season began during the 4th of July holiday.
THE MARKETS
FTSE:
At the close of play, the FTSE100 was down 1.1 points at 5,888.9 with the FTSE250 down 30.1 points at 9,431.6. The FTSE Small caps managed a gain of 4.6 points to 3,413.7. Volume was light 2.78 billion shares trading in 307,934 deals.
DOW JONES AND NASDAQ:
The new buzzword for the decline in the US markets today is “stagnation.” Unemployment last quarter remained steady at 4.6% with 121,000 new jobs added to the employment market.
The Dow Jones Index closed down 1.20%% and settled at 11,090.67 and the NASDAQ closed down .57% and settled at 2,130.06.
DEVELOPING FACTORS
(Iran)
As yet there has been no movement from Iran on new incentives that have been offered to stop that country from enriching nuclear fuel for energy generation. Iran maintains it’s their right to enrich fuel for energy generation but the European Community as well as the United States is impatient to get Iran’s answer. Iran wants to put things off until the end of August at least. Those sending the proposals want the response to be at the end of July. Iran has stated that the talks should be unconditional.
(Iraq)
Much needed investment in Iraq’s oil infrastructure may not materialise due to the continued vandalism and violence in that country. Many industry analysts are recommending not investing in Iraq’s oil industry until the situation stabilises.
LATIN AMERICA:
(Colombia)
It’s good news for Colombia’s oil industry! Several South American news agencies report that nine oil companies, including majors London-based BP PLC (BP), French Total S.A. (TOT) and Russia's Lukoil Holdings (LKOH.RS), sent offers to bid for the Colombian Niscota oil field, the country's National Hydrocarbons Association, or ANH, said Wednesday. Other companies that presented bids were Spain's Repsol YPF (REP), Argentina's Pluspetrol Resources Corp., France's Perenco, Colombia's state-oil company Ecopetrol, UK Talisman Energy (TLM) and Hocol SA, the Colombian unit of French oil company Etablissements Maurel et Prom SA (5107.FR).
(Brazil and Ecuador)
Ecuador's Energy Ministry has announced that, that Country and Brazil's respective state oil companies, Petroecuador and Petrobras have signed a five-year agreement to develop initiatives throughout the Ecuador’s hydrocarbons chain. The agreement focuses on storage, refining, bio-fuels development and E&P. According to the announcement, Petrobras is particularly interested in E&P of the ITT (Ishpingo-Tambochocha-Tiputini) oilfields in Ecuador's north, as well as the Sur Oriente Ecuatoriano blocks. Ecuador stands to sharply increase its oil revenues due to a change in legislation, which awards 50% of oil revenue to that country.
(Venezuela)
It was hoped that rhetoric about trade and benefits to infrastructure and people in the MERCOSUR block would predominate the media today after the announcement that Venezuela had joined the trade block. Unfortunately, the dreaded Falklands virus has impregnated the feel good feeling. People in the Falklands feel that the rhetoric is hydrocarbons related and class it as sabre rattling. One wonders if the rhetoric would be the same if the price per barrel were around $10.00.
(Mexico)
Supporters of Sr. Andres Manuel Lopez Obrador have asked for another recount of the 41 Million votes cast in Mexico’s election on Sunday, Sr. Felipe Calderon has won the victory by an extra-slim margin of .005%. Sr. Obrador has vowed to challenge the results in court. At stake is Mexico’s philosophy concerning their economic future, with Sr. Obrador wanting to nationalise the hydrocarbons industry and Sr. Calderon wanting free trade markets to dictate his country’s wealth.
(Falkland Islands)
Falklands Oil Stocks End of Day Price for the 7.7.06
Desire Petroleum down 1p or 2.5% on the day to stand at 38.25p
Falklands Oil and Gas up 0.5 or 0.4% on the day to stand at £112.50p
Rockhopper Exploration down 1p or 2.6% on the day to stand at 37p
Border and Southern up 0.5p or 1.1% on the day to stand at 44.5p
|
