Falklands : Hydrocarbons Daily Record (20 and 21 August 2007)
Submitted by Falkland Islands News Network (Juanita Brock) 22.08.2007 (Article Archived on 05.09.2007)
The southerly track of Hurricane Dean has helped to decrease the price of crude over the past two days.
HYDROCARBONS DAILY RECORD: MONDAY, 20 and TUESDAY, 21 AUGUST 2007
Compiled by J. Brock (FINN)
At 1700hrs LMT on Tuesday, 21 August 2007 Light Sweet Crude was trading at $69.47 down $1.65 on the New York Mercantile Exchange and Brent Crude was trading at $68.69 down $1.16 on London’s Ice Futures Market. On Monday Light Sweet Crude traded at $71.08 and Brent Crude traded at $69.79.
ANALYSIS:
The drop in crude prices is largely due to relief that Hurricane Dean will not be hitting infrastructure in the US and that a weakened Hurricane Dean will not be damaging PEMEX infrastructure as previously thought. The slide began on Monday when it was forecast that Dean would not be reaching the United States.
THE MARKETS (Tuesday, 21 August 2007)
FTSE 100: 6,086.19 up 7.4
FTSE 250: 10,639.30 down 0.6
SmallCap: Not available
DJI: 13,090.86 down 30.49
NASDAQ: 2,521.30 up 12.71
S&P500: 1,447.12 up 1.57
INTERNATIONAL DEVELOPMENTS:
(Caspian Basin)
The U.S. Energy Information Administration has published statistics showing that by 2015 Caspian basin energy production could reach 4.3 million barrels per day. In addition to the region's proven reserves of 17 billion to 49 billion barrels, it is comparable to Qatar and Libya. The Caspian basin could contain an additional reservoir of hydrocarbons up to 235 billion barrels of crude. Also, a potential for natural gas reserves are reported as large as the region's proven gas reserves and could yield another potential 328 trillion cubic feet of gas.
REGIONAL DEVELOPMENTS:
(Bolivia)
A company press release states that Franklin Mining, Bolivia S.A. would like to be able to concentrate solely on mining projects in Bolivia. This means that the parent company, Franklin Mining, Inc. has begun reviewing options for the sale of company interests in oil and gas projects. Under review are several options including the sale of Franklin Oil & Gas, Bolivia S.A. and Franklin Oil & Gas, Argentina S.A. A decision expected to be announced within a month. Each option under consideration will provide for payment of a dividend to current Franklin Mining, Inc. shareholders. Franklin Mining, Inc. holds 51% interest in each of the two oil and gas subsidiaries. Included in the sale could be a GTL facility construction contract in Tierra del Fuego, Argentina and two Bolivian projects under Memorandum of Understanding. Also a possibility is the construction and future operations of GTL facilities in the Departments of Santa Cruz and Tarija.
As reported in HDR Bolivia’s government set Aug. 20 as the deadline for energy companies to submit plans for the sale of natural gas for domestic and foreign markets, to supply Argentina aswell as other Latin American countries. Contracts of Companies that did not submit plans would be cancelled. Negotiations thus far are between Bolivia and foreign energy firms Petroleo Brasileiro, Repsol YPF, Total and BG Group over contract terms are continuing, Guillermo Aruquipa, president of Bolivian state oil company Yacimientos Petroliferos Fiscales Bolivianos (YPFB).
(Venezuela)
Last week HDR reported that Venezuela wants to save money by setting up a service company for its oilfields with the aim is to make Venezuela less dependent on foreign companies for essential oilfield services. Several Latin American newspapers quoted Oil Minister Rafael Ramirez, and mentioned that he feels the proposed new company can be as good as the present services contractor, Halliburton. There are no further developments on this story but it is important and it will be monitored.
A story that won’t go away is the $800,000.00 found in a suitcase. Personally, I hope it will be used as a smokescreen for constructive talks taking place behind the scenes with a view to consolidating the hydrocarbons industry in South America so that profits will benefit South Americans.
RELEVANT SHARE PRICES:
TLW: 462.50 up 12.50, DES: 25.75 unchanged, FOGL: 115.50 up 2.00, RKH: 42.50 up 0.50 BOR: 27.75 unchanged, PRE: 12.50 down 0.25, GBP: 6.38 unchanged
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