Falklands : Hydrocarbons Weekend Record: 04 to 06 AMay 2007
Submitted by Falkland Islands News Network (Juanita Brock) 06.05.2007 (Article Archived on 20.05.2007)
A look back at last week's inventory report and development as well as share and crude prices.
HYDROCARBONS WEEKEND RECORD: 04 TO 06 MAY 2007
Compiled by J. Brock (FINN)
WEEKEND DEVELOPMENTS:
(Bolivia)
On May 1, 2007, one year after the new Bolivian administration nationalised its hydrocarbons revenues, the president announced that new revenue is coming in and better than it was last year at this time. President Evo Morales explained the creation of new programs funded by this income intended to create jobs, encourage small businesses and stress the nation’s ownership of all hydrocarbons and other mineral wealth. Bolivia is putting into force the 44 oil contracts it negotiated last year. The agreements, signed by the executive and 12 foreign Hydrocarbons Companies in October 2006, will allow the state YPFB oil company to assume control over the oil and gas business, Hydrocarbons Minister Carlos Villegas said.
LAST WEEK’S CRUDE PRICES:
Monday, 30 April 2007: Light Sweet Crude was trading at $65.71 down 75 Cents on the New York Mercantile Exchange and Brent Crude was trading at $67.65 down 76 Cents on London’s Ice Futures Market.
Tuesday, 01 2007: Light Sweet Crude was trading at $64.40 down $1.31 on the New York Mercantile Exchange and Brent Crude was trading at $67.30 down 65 Cents on London’s Ice Futures Market.
Wednesday, 02 May 2007: Light Sweet Crude was trading at $63.68 down 72 Cents on the New York Mercantile Exchange and Brent Crude was trading at $66.25 down 75 Cents on London’s Ice Futures Market.
Thursday, 03 May 2007: Light Sweet Crude was trading at $63.19 down 49 Cents on the New York Mercantile Exchange and Brent Crude was trading at $65.57 down 20 Cents on London’s Ice Futures Market.
Friday, 04 May 2007: Light Sweet Crude was trading at $61.84 down $1.35 on the New York Mercantile Exchange and Brent Crude was trading at $65.31 down 74 Cents on London’s Ice Futures Market.
INVENTORY REPORT FOR WEEK ENDING 27 APRIL 2007:
Crude: Up 1.1 Million Barrels to 335.6 Million Barrels.
Gasoline: Stocks decreased by 1.1 Million Barrels to 193.1 Million barrels.
Distillates: Stocks fell by 200,000 million barrels. Analysts projected an increase of 288,888 barrels.
Refinery Capacity: Refinery capacity increased by 0.5% to 88.3 %.
ANALYSIS:
Monday, 30 April 2007: Crude prices fell today due to easing concerns about US inventories. Refineries have closed units due to reduced demand. These reports come ahead of Wednesday’s US Department of Energy Administration report. Last week analysts’ predictions were well off the mark. This week will show if those predicting increases have tightened up their analysis.
Tuesday, 01 May 2007: Traditionally crude prices drop if analysis is positive prior to inventory reports. Investors are also awaiting economic data. These factors helped to lower the price of crude today.
Wednesday, 02 May 2007: An increase of 1.1 Million barrels of crude last week helped prices to drop today.
Thursday, 03 May 2007: Nigerian militants have freed several foreign oil workers and this helped to reduce the price of crude today. However, tensions in the region could rise and cause the reverse affect.
Friday, 04 May 2007: Tensions in Nigeria materialised but it was inventories in the US that helped lower the price of crude significantly today.
REGIONAL DEVELOPMENTS:
(Falkland Islands)
(SSL)
Stanley Services have announced a rise in petrol prices to 72p per litre. Prices for Diesel, Kero and Propane gas remain the same.
(Desire Petroleum)
Desire Petroleum PLC has announced pre tax losses of £2.5 Million due to the strengthening of the Pound against the US Dollar. As reported in last week’s HDR Desire Petroleum PLC is trying to secure a rig for exploratory drilling in its tranches in the North Falkland Basin. However, the tight rig market has fallen victim to oil companies who keep them for exploitation.
(Venezuela)
Sometime during 2008 Venezuela’s government would like to prove that the region around the Orinoco River holds the largest oil reservoir in the world. These resources could contain 316 billion barrels. This could make Venezuela’s hydrocarbons resources larger than those of Saudi Arabia (264 billion barrels). The Government of President Hugo Chavez hopes to raise $15 Billion over the next 5 years to certify the amount contained in the Orinoco region. It is expected that PDVSA will be the operating company with 51% of the input. Today four huge projects - strategic partnerships - Ameriven, Sincor, Petrozuata and Cerro Negro – will become joint ventures with Venezuela as major shareholder.
(Falkland Islands)
Note: The following is for information only. People wishing to submit the form should either have received it via e-mail or they can download one from the website.
form of direction
Notes:
1 To be effective, in the case of holders of depositary interests residing outside the Falkland Islands, this form of direction and the power of attorney or other authority (if any) under which it is signed, or a notarially or otherwise certified copy of such power or authority, must be returned by post to The Proxy Processing Centre, Telford Road, Bicester, OX26 4LD or by hand to Capita Registrars, The Registry, 34 Beckenham Road, Beckenham, Kent BR3 4TU not later than 72 hours before the time appointed for holding the AGM. In the case of holders of depositary interests residing in the Falkland Islands, this form of direction and the power of attorney or other authority (if any) under which it is signed, or a notarially or otherwise certified copy of such power or authority, must be deposited at the Company’s registered address, 56 John Street, Stanley, Falkland Islands FIQQ 1ZZ not later than 72 hours before the time appointed for holding the AGM.
The full form can be seen in Tuesday’s HDR.
(Peru)
Peru's government statistics agency INEI said late Tuesday that mining and hydrocarbon sector output rose 2.33% in March. This the first increase in the last seven months. Causing the increase was a 1.12% rise in the mining sub-sector and an increases in copper, zinc, lead and iron mining, and a 16.59% increase in the hydrocarbon sub-sector.
(Bolivia)
After six months of congressional debating the government of Bolivia has put into force 44 contracts negotiated after the 01 May 2006 nationalisation of the hydrocarbons industry by the newly elected President, Mr. Evo Morales. The contracts, signed in October, will allow the state run oil company, YPFB to take control over the oil and gas production. Hydrocarbons Minister Carlos Villegas stated the government will endorse an energy policy that prioritises the implementation of exploitation and exploration projects and fuel transportation. He stressed the importance to meet internal demands and commitments with neighbor countries such as Brazil and Argentina.
(Brazil)
In a Thursday press release, Brazilian oil company Petrobras denied any plans to leave projects it runs with its Venezuelan counterpart Petróleos de Venezuela (Pdvsa). Petrobras could waive part of its obligations in Venezuela due to the nationalisation of hydrocarbons reserves undertaken by the government of President Hugo Chávez. The press release went on to reassure Petrobras’ Venezuelan counterparts that there was no risk of discontinuing negotiations or negating the alliance begun two years ago.
RELEVANT SHARE PRICES:
Monday, 30 April 2007: TLW: 366.50 up 1.00, DES: 26.00 down 0.50, FOGL: 88.00 Unchanged, RKH: 40.00 down 0.50, BOR: 25.00 unchanged
Tuesday, 01 May 2007: TLW: 360.00 down 0.50, DES: 26.00 unchanged, FOGL: 88.00 unchanged, RKH: 40.00 unchanged, BOR: 25.00 unchanged
Wednesday, 02 May 2007: TLW: 364.50 down 1.50, DES: 25.50 down 0.50, FOGL: 88.00 unchanged, RKH: 39.50 down 0.50, BOR: 25.50 unchanged
Thursday, 03 May 2007: TLW: 369.25 up 4.75, DES: 25.00 down 0.50, FOGL: 88.00 unchanged, RKH: 40.00 up 0.50, BOR: 25.50 unchanged
Friday, 04 May 2007: TLW: 364.00 down 5.25, DES: 25.00 unchanged, FOGL: 88.00 unchanged, RKH: 39.00 down 1.00, BOR: 25.00 unchanged
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