Falklands : Hydrocarbons Weekend Record (19/20 August 2006)
Submitted by Falkland Islands News Network (Juanita Brock) 21.08.2006 (Article Archived on 04.09.2006)
Though generally unmaintained, the infrastructure at Prudhoe Bay in Alaska can still operate at half capacity. It will take at least 6 months to repair the damage to corroded pipeline.
HYDROCARBONS WEEKEND RECORD: 19/20 AUGUST 2006
By J. Brock (FINN)
TRENDS
During The past week crude prices have fluctuated but not below $70.00 as it was hoped. Trends towards peace in the Mid-East indicate that the ceasefire has largely worked, though there was a violation by the Israelis this weekend.
There has been good news about Prudhoe Bay in that the whole facility will not be shut down as first thought. The knock-on affect is that the supply of hydrocarbons products in the United States will not be as tight as anticipated when the infrastructure maintenance at Prudhoe Bay was announced.
Weather in the Gulf States has generally been calm, with many typhoons happening in the Pacific.
DEVELOPING FACTORS
(Bolivia)
The pressure is on President Evo Morales to do something about failure to nationalise his country’s hydrocarbons industry. For the lack of money ($180Million) to gain a 51% share, Bolivia’s Energy Ministry’s energy company has not met deadlines. It was hoped to have new contracts signed by the end of the year but this looks unlikely now. Besides money, Bolivian entities lack technical know-how the keep the gas in production and the infrastructure maintained. This may not always be the case but it is unfortunate the shortcomings weren’t cared for before nationalisation was announced.
(Ecuador)
A press release Tuesday from the Energy Ministry said that Ecuadorean Energy Minister Ivan Rodriguez said he has launched promotional efforts in the U.S. to attract foreign investment for the Andean nation's hydrocarbons industry. The highest-priority projects are the tender of minor fields and the so-called 10th oil round. These tenders have been pending since 2005, when Lucio Gutierrez was president. State-owned oil company Petroecuador operates 14 smaller fields, producing 8,000 barrels a day. These fields have reserves of 14 million barrels. Government is hoping to increase output to between 15,000 and 20,000 b/d, which will need an investment close to $20 million.
(Venezuela)
President Hugo Chavez is going to China to secure oil tankers to deliver Venezuelan crude to the People’s Republic of China. Venezuela has announced plans for a joint venture to build an oil pipeline to the Pacific coast. The idea – a good one – is in its infancy. President Chavez has travelled the world lately to promote Venezuela and their Hydrocarbons industry.
(Falkland Islands)
Share prices at the close of play on Friday, 18 August 2006:
(Note: No weekend prices available.)
Desire Petroleum Plc was up 0.25 or 0.65% on the day to settle at 38.50.
Falkland Oil and Gas Limited (FOGL) ended the day 1.50 points lower or 1.29% to stand at 114.50.
Rockhopper Exploration ended unchanged on the day to settle at 35.50
Borders & Southern ended unchanged on the day at 45.50
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