Falklands : Hydrocarbons Weekend Record (15/16 July 2006)
Submitted by Falkland Islands News Network (Juanita Brock) 17.07.2006 (Article Archived on 31.07.2006)
If the price of crude rises too much more people will be seeking alternatives. nervousness could rot the golden egg.
HYDROCARBONS WEEKEND: (15/16 JULY 2006)
By J. Brock (FINN)
More people are seeking ways to economise on their hydrocarbons expenditure. Recently there has been an increase in the purchase of alternative energy such as solar power units and wind generators. Vehicles using hydrogen and propane gas have also been seen on the streets of municipalities wanting to save tax payers’ money. There would be less nervousness about gasoline supplies of more alternative fuel vehicles and energy generation were used.
The escalation of hostilities and destruction as well as deaths in Israel and Lebanon is expected to drive the price of crude higher. Prices went over $78.00 per barrel before settling around $77.00 a barrel on Friday. This is a record high but predictions are that $100.00 crude could come sooner rather than later. Nervousness about the supply of gasoline in the United States also adds to the general price rises.
DEVELOPING FACTORS:
(Israel and Lebanon)
It had been predicted that any conflict in the Mid East would rise the price of crude to $100.00. This seems to be true with the price sharply rising with the onset of the conflict between Israel and Lebanon as well as the conflict in the Gaza Strip.
(Russia)
The G-8 Summit in Russia has issued a statement about energy security but it is not expected to drop the price per barrel but it could help to curb some sharp rises. There was an emphasis on sustainable access to fuels and security for energy as part of global security. This would affect the secure transport of fuel as well.
(Iran)
As yet there has been reluctance to give an answer to the G-8 about enrichment of nuclear fuel for energy generation. Iran did not want to speed up an answer but postpone one until the end of August. Though nuclear energy is a viable alternative to hydrocarbons, the West does not want fuel enrichment because they think Iran could use it for terrorism. Recently Iran made a statement that if anyone attacks Syria then it is an attack against the whole mid east region. This adds to the nervousness leading to an increased price per barrel of crude. This causes nervousness for hydrocarbons investors and buyers.
LATIN AMERICA:
Given the recent developments over nationalisation, Latin America is relatively safe for hydrocarbons security compared to the Mid East.
(Mexico)
Supporters of opposition candidate Mr. Obrador have taken to the streets again this weekend to demand a hand count of the 41 Million votes cast in Presidential elections earlier this month. There is already a proposed court action about this. Candidate Obrador says that election fraud lead to his narrow defeat by Candidate Calderon.
(Ecuador)
The 50% take from Ecuador’s hydrocarbons sector has set a trend for other oil producers. Algeria is the latest country to announce plans for a larger take of oil profits by multinationals. Investors wait and see if the money will trickle down to the country’s people in the form of roads, schools, hospitals and other infrastructure and opportunities.
(Falkland Islands)
Falklands Oil Stocks End of Day Price for the 14.7.06
Desire Petroleum up 0.75p or 1.88 % on the day to stand at 47p
Falklands Oil and Gas down .2p or 1.83% on the day to stand at £1.07.50p
Rockhopper Exploration down.3p or 7.06 on the day to stand at 39.5p
Border and Southern down 50p or 1.05% on the day to stand at 47p
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