Falklands : Hydrocarbons Daily Record 26/06/07
Submitted by Falkland Islands News Network (Juanita Brock) 27.06.2007 (Article Archived on 11.07.2007)
Optimism ahead of the US Department of Energy Administration inventory report has helped to lower the price of crude today.
HYDROCARBONS DAILY RECORD: TUESDAY, 26 JUNE 2007
By J. Brock (FINN)
At 1800LMT on Tuesday, 26 June 2007 Light Sweet Crude was trading at $67.77 down $1.41 on the New York Mercantile Exchange and Brent Crude was trading at $70.14 down $1.22 on London’s Ice Futures Market.
ANALYSIS:
There is optimism about crude reserves in the US Department of Energy Administration inventory report. However, refinery capacity is a key factor in producing supplies of gasoline. It is those supplies that dictate the price at the pump as well as the price we pay for crude. The optimism about crude reserves helped the price of crude to drop today.
THE MARKETS:
FTSE 100: 6,559.30 down 29.11
FTSE 250: 11,537.10 down 40.32
SmallCap: 4,028.30 down 9.63
DJI: 13,337.66 down 14.39
NASDAQ: 2,574.16 down 2.92
S&P: 1,492.89 down 4.85
INTERNATIONAL DEVELOPMENTS:
(Russia)
A press release from Imperial Energy Corporation announces that Vodorazdelnaya-3 well in Russia's Tomsk region has encountered commercial hydrocarbons in the Tyumen reservoir from a depth of 2,767.9 metres with a total thickness of 28.3 metres net pay and added that the well is being tested. The press release goes on to say that North Chertalinskaya-403 well was spudded ahead of schedule earlier this month. Buranovskaya-2 and Nyulginskaya-2, will also be spudded ahead of schedule. Drilling of the exploration well on North Torgai has been Block in Kazakhstan, originally scheduled for late this year, has now been brought forward.
REGIONAL DEVELOPMENTS:
(Venezuela)
Conoco Phillips and Exxon Mobil have announced that they are pulling out of Venezuela’s oil industry. Venezuela’s government is taking over the majority operating share in the Orinoco Belt, as it nationalises hydrocarbons assets. Four other oil companies – Total, Chevron, BP and Statoil have met today’s deadline and signed deals with Venezuela. PDVSA, is now in charge of exploration in the Orinoco Belt. There are proven reserves of at least 80 billion barrels but there could be enough there to make Venezuela the world's biggest source of oil. Both Conoco Phillips and Exxon/Mobil have invested heavily in Venezuela.
(Bolivia)
Brazilian state-owned energy company, Petrobras, has relinquished two refineries it owns in Bolivia after a compensation deal last month. The head of the state energy company, YPFB, said Bolivia had taken back the refineries, saying they belonged to Bolivia in the first place. The $112m (£56m) buy-back was part of President Evo Morales' wider energy nationalisation, giving the state more control and a larger slice of profits. This seems to be the final word on the story that has been widely reported in HDR.
RELEVANT SHARE PRICES:
TLW: 490.25 down 9.50
DES: 30.25 down 0.75
FOGL: 80.00 up 0.50
RKH: 42.50 down 0.50
BOR: 24.50 unchanged
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