Falklands : Hydrocarbons Daily Record (13 September 2007)
Submitted by Falkland Islands News Network (Juanita Brock) 14.09.2007 (Article Archived on 28.09.2007)
Fears over a hurricane that has brought much needed rain to the South-eastern US are blamed on crude price increases today. $80.00 per barrels is a bit extortionate, whouln't you say?
HYDROCARBONS DAILY RECORD: THURSDAY, 13 SEPTEMBER 2007
By J. Brock (FINN)
At 1830hrs LMT on Thursday, 13 September 2007 Light Sweet Crude was trading at $80.20 up 18 Cents on the New York Mercantile Exchange. Brent Crude was trading at $77.40 down 28 Cents on London’s ICE Futures Market.
ANALYSIS:
Hurricane Humberto has come ashore in the US and very quickly has drenched the drought ridden South Eastern States with much needed rain. However, it was used to keep crude prices artificially high.
£80.00 crude to some can force a decision to heat today or eat today. And, it comes just in time for the winter heating season. It is thought that some of the massive profits from this crude should be ploughed firstly into infrastructure and secondly into programmes that put heating back into homes of poor people.
THE MARKETS: 13 SEPTEMBER 2007:
FTSE100: 6,363.90 up 57.71, FTSE250: 11,172.40 down 47.31, SmallCap: 3,748.20 up 0.96
DJI: 13,424.88 up 133.23, NASDAQ: 2.601.06 up 8.99, S&P500: 1,483.95 up 12.39
INTERNATIONAL DEVELOPMENTS:
(Oman and Yemen)
The governments of Oman and Yemen are attempting to launch the Trans-Arabia Oil Pipeline project. The pipeline infrastructure is being designed to bypass the Straits of Hormuz. One-third of the world's oil currently flows through the Straits of Hormuz. Work on the pipeline is due to begin in November. Large sections of the pipeline will be buried underground. Once complete, the system will include five separate pipelines.
(Iran)
Iran’s road users have voted with their pocketbooks regarding the decrease in gasoline subsidies in June. Demand and imports of gasoline have decreased significantly since then. Heavily subsidised by Iran’s government, gasoline prices in the country are amongst the lowest in the world. Gasoline is imported into Iran because the country does not have the infrastructure to refine enough gasoline for local consumption.
(UK and India)
It is widely reported that Edinburgh-based Cairn Energy yesterday threw water on reports of a 17% first-half drop in pre-tax profits by announcing that three new Indian fields will come on stream in 2009. Press releases went on to say that India’s government has approved a pipeline to link the first of these (Mangala) with the region’s main refineries. According to the press release, Cairn Energy will contribute 70% of the pipeline’s estimated £400m cost with the rest coming from joint-venture partner Oil and Natural Gas Corporation. The company raised close to £700m through an IPO in India in December, a move which also ensured a return to net profit in H1 despite decline in sales.
REGIONAL DEVELOPMENTS:
(Colombia and Brazil)
Brazilian oil company Petrobras has started drilling an exploration well in the Colombian offshore Tayrona block located off the Caribbean coast. The company started drilling in Tayrona on 13 September 2007 at 3 a.m. According to Armando Zamora, the head of Colombia's hydrocarbons agency, Petrobras is teamed with ExxonMobil Corporation and state-owned Colombian oil company Ecopetrol SA to explore the area, which could hold 10 trillion cubic feet of natural gas reserves.
(Bolivia)
Bolivia’s Energy Minister Carlos Villegas announced this week that foreign energy corporations have promised to invest more than 580 million US dollars in that country’s energy infrastructure in 2007. Energy Minister Carlos Villegas went on to say that more than two thirds of that investment had been pledged by the local units of Spain's Repsol YPF, Brazil's government managed Petrobras and Pan American Energy.
LOCAL DEVELOPMENTS:
According to a press release from ANCAP, Uruguay’s state-owned energy Company, in six months the government of Uruguay will know if hydrocarbons have been generated in the River Plate Punta del Este basin. Daniel Martinez, the Company CEO, made the announcement after he visited the Norwegian flagged vessel MV “Bergen Surveyor,” now in Montevideo. Wavefield Inseis ASA, has been contracted for a 2D seismic seismic of the Punta del Este basin that stands 200 kilometers offshore of Punta Del Este in Uruguay. MV Bergen Surveyor did seismic surveys in the Falkland Islands 10,000 km 2D seismic survey contract in the South and East Falkland Basins for FOGL.
RELEVANT SHARE PRICES 13 SEPTEMBER 2007:
TLW: 552.50 down 7.50, DES: 29.50 up 0.25, FOGL: 165.00 up 12.50, RKH: 49.00 unchanged, BOR: 33.00 down 0.25, PRE: 14.00 up 1.50, GBP: 9.00 unchanged, GPK: 422.00 unchanged.
|
