Falklands : Hydrocarbons Daily Record (19/01/07)
Submitted by Falkland Islands News Network (Juanita Brock) 20.01.2007 (Article Archived on 03.02.2007)
There seems to be nervousness whenever the price for crude goes before $50.00 per barrel.
HYDROCARBONS DAILY RECORD: FRIDAY, 19 JANUARY 2007
By J. Brock (FINN)
At 1800 LMT on Friday, 19 January 2007 Light Sweet Crude gained $1.51 to settle at $51.99 on the New York Mercantile Exchange and Brent Crude increased $1.69 to settle at $53.44 on London’s ICE Futures Market.
TRENDS:
Even though there is over supply of crude and no new threatened production cuts by OPEC on the cards the price of crude gained significantly today. It is thought that $50.00 per barrel will be the benchmark price for a while as there seems to be nervousness when it goes below that price.
THE MARKETS:
FTSE 100 closed at 6,237.20 up +26.93
FTSE 250 closed at 11,167.70 up +44.85
FTSE Small Cap closed at 3.943.20 up +3.36
DJI closed at 12,565.53 down -2.40
NASDAQ closed at 2,451.31 up 8.10
S&P500 closed at 1,430.50 up 4.13
WORLD-WIDE DEVELOPMENTS:
(Iraq)
Iraq's Oil Ministry spokesman Assem Jihad has announced that the new hydrocarbons law, which could signal investments from foreign oil companies, has been drafted and will be submitted to the Iraqi cabinet for endorsement next week. He went on to say that once the draft law is endorsed by the Cabinet, it will go to the Iraqi Parliament for final approval. It is expected that it will take approximately one month for parliament to ratify the law. Iraq’s oil reserves are about 115 billion barrels.
(Mexico)
Mexico’s President Felipe Calderón said his country will increase efforts to attract foreign capital – especially from investors leaving Latin American countries announcing nationalization of key industries like the energy sector. Mexico’s business sector is thinking about how to give guarantees so that investment increases. President Calderon made the remarks on Thursday in a speech to the Executive Board of Global Businesses.
REGIONAL DEVELOPMENTS:
(Falkland Islands)
TIM BUSHELL EXPLAINS LNG INDUSTRY POTENTIAL IN THE FALKLANDS
By J. Brock (FINN)
During FOGL’s presentation on Thursday at the Chamber of Commerce Tim Bushell mentioned the Liquefied Natural Gas (LNG) industry and its potential in the Falklands. He said that there must be a lot of natural gas – at least 6 trillion cubic feet (TCF) – in order to make the industry viable here. He pointed out that it was hopeful the Loligo prospect might hold the required amount to attract investors.
FINN: If viable amounts were found, how long would it take to get an interested investor and the proper infrastructure set up to begin industrial production?
TB: This would be a long-term process – even longer than the oil project. And, it would cost billions of dollars. In terms of a start date it would be at least 10 years – possibly 2017 – 2018.
FINN: If There are sufficient resources in the Loligo Prospect, what then?
TB: We would want to attract certain companies that would develop the resource. Gas de France would be such a company. Those companies do not take the risks – that’s up to the exploration companies like us. They develop resources and have no risk up front.
FINN: Has there been any work done to pave the way for an LNG industry should there be enough resource and interest?
TB: We have commissioned a scoping study that should answer what would be what be the minimum requirements for an LNG development here. At the moment we don’t know the composition of the gas and depending on that we will be able to figure out what products we can derive from it. We are also looking at the feasibility of having infrastructure on shore and having the gas piped to it for processing.
FINN: What is the difference between LNG and GTL technology?
TB: There is only one GTL facility in the world and it is new technology. The product from the process is a high quality diesel with no sulphur. There are several LNG plants throughout the world using proven technology and products will be derived from it depending on the type and quality of natural gas found.
FINN: And what about the market for the products produced?
TB: LNG is easier to sell on the world-wide market and I feel it makes sense to have an LNG industry here.
Relevant Share Prices for Friday, 19 January 2007:
Tullow Oil up +1.75 to settle at 397.75
Desire Petroleum up 0.75 to settle at 33.75
FOGL down -0.50 to settle at 88.50
Rockhopper Exploration unchanged at 38.50
Borders & Southern up +1 at 33.50
|
