Falklands : Hydrocarbons Weekend Record (08/09July 2006)
Submitted by Falkland Islands News Network (Juanita Brock) 10.07.2006 (Article Archived on 24.07.2006)
Colombia, Panama and Venezuela have an exciting plan to pump oil to a Pacific port
HYDROCARBONS WEEKEND RECORD: FRIDAY, 08/09 JULY 2006
By J. Brock (FINN)
TRENDS:
Prices reflected 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. Reports of hydrocarbons development and finds are soothing factors but do not outweigh the disappointing news from the Mid East and other areas where oil is produced.
DEVELOPING FACTORS
LATIN AMERICA:
(Ecuador)
On Friday, Ecuador's lower house Speaker, Wilfrido Lucero, defended a reform law against opposition from companies, warning of huge losses should the hydrocarbons law be withdrawn. If the Ecuadorian parliament withdrew the Hydrocarbons Law, Ecuador would lose 429 million U.S. dollars a year, said the Speaker of the National Congress. The amount is the Economy Ministry's estimate of income from the reform, which came into law on April 25. The Ministry expects the Hydrocarbon Law to bring in 1.3 billion dollars a year. 500 million dollars will be allocated for energy projects and 400 million dollars for infrastructure and social spending.
(Venezuela)
Several South American news agencies report that Venezuela has teamed up with Panama and Colombia to build an oil pipeline to the Pacific so they can increase the supply to Asian markets. Venezuela also hopes to nearly double its production of extra-heavy oil in the Orinoco tar belt within three years by impriving drilling efficiency, said a director of state oil company PDVSA to several media outlets. Venezuela is already producing 620,000 barrels per day of synthetic crude drawn from an estimated 235 billion barrels of extra heavy oil located in the Orinoco (tar) Belt.
(Mexico)
One hundred thousand supporters of Sr. Andres Manuel Lopez Obrador have marched in Mexico City on Sunday and asked for another recount of the 41 Million votes cast in Mexico’s election last 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 as well as calling his supporters to the street. At stake is Mexico’s philosophy concerning their economic future. Sr. Obrador wants to nationalise the hydrocarbons industry and Sr. Calderon advocates free trade markets to dictate his country’s wealth.
(Falkland Islands)
Local investors are waiting to see if negotiations to secure an exploration rig have been successful.
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
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