Falklands : Hydrocarbons Weekend Record (05/06 August 2006)
Submitted by Falkland Islands News Network (Juanita Brock) 07.08.2006 (Article Archived on 21.08.2006)
Despote worries over diplomatic rows with the United States, Russia's Gazprom will invest to ensure the South American pipeline is a worthwhile project.
HYDROCARBONS WEEKEND RECORD: 05/06 AUGUST 2006
By J. Brock (FINN)
TRENDS:
Again, it is geopolitics dominating in the scheme of things this weekend with Hezbollah shelling Haifa seemingly from areas already occupied by Israel. Diplomatic efforts will continue in the mid east at the highest level despite accelerated fighting. The US blames Iran and Syria for supplying the terrorist organisation that has taken over much of Lebanon. One wonders if there would be a high degree of conflict if oil was at $25.00 a barrel.
High demand for hydrocarbons products in China as well as the United States caused some nervousness amongst investors this weekend as well as reports of high summer energy demands and for gasoline consumption in the United States. Soon it will be the season for Winter heating and concerns for the less well off who cannot afford to keep warm will soon take over from the drive season, where people were using gasoline for holidays. As winter approaches there will be more nervousness as the hurricane season, begun on 01 June this year nears its halfway point.
Purchasing fuel for precautionary inventories continues to help either drive crude higher or lower, depending on the wisdom of purchasing those supplies at the lowest possible price.
DEVELOPING FACTORS:
(Venezuela)
Russia's state-controlled Gas Company, Gazprom, risks diplomatic unease with the United States over a reported investment in Venezuela’s proposed pipeline. According to Venezuela's President, Hugo Chavez, the Russian gas giant is close to a deal on the project. On a visit to Moscow last week, Mr. Chavez told a Russian TV news programme that Gazprom and its technicians are studying a project for the construction of a gas pipeline from Venezuela to Argentina. Gazprom already has two exploration licences in Venezuela, Latin America's biggest hydrocarbons producer.
(Bolivia)
Gazprom recently declared an interest in investing in Bolivia, another regional enemy of the U.S. It comes after Russian President Vladimir Putin failed at the G8 summit in St Petersburg in July to secure American support for its entry to the World Trade Organisation. Mr. Putin has also argued with Western countries over the growing power of Gazprom, which supplies 25 per cent of the European Union's gas and controls the vast pipeline network .
(Argentina, Paraguay and Uruguay)
The proposed pipeline aims to link Venezuela's huge natural gas reserves through Brazil to Argentina. Proposed branches will extend to Bolivia, Paraguay and Uruguay.
(Cuba)
IGazprom revealed In June that it was in discussions to invest $2-3 billion in Bolivia, which, alongside Venezuela and Cuba, is part of a self-declared Bolivarian Axis that aims to be a regional counterweight to the U.S.
(Falkland Islands)
Falklands Oil Stocks End of Day Price for the 04.08.06
Desire Petroleum down 0.50 points or 1.31% on the day to stand at 37.25p
Falklands Oil and Gas was down 0.50 points or 0.45% on the day to stand at .111.50p
Rockhopper Exploration was unchanged on the day to stand at 37.50p
Border and Southern was down 1.00 points or 2.13% on the day to stand at 46.00p
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