Falklands : Hydrocarbons Daily Record (20 September 2007)
Submitted by Falkland Islands News Network (Juanita Brock) 21.09.2007 (Article Archived on 05.10.2007)
$100 dollar oil just may kill the goose that laid the golden egg.
HYDROCARBONS DAILY RECORD: THURSDAY, 20 SEPTEMBER 2007
By J. Brock (FINN)
At 1830hrs LMT on Thursday, 20 September 2007 Light Sweet Crude was trading at $83.32 up $1.39 on the New York Mercantile Exchange. Brent Crude was trading at $78.09 up 62 Cents on London’s ICE Futures Market.
ANALYSIS:
Even though people are talking about $100.00 oil there is a downside to big bucks for the few. People are beginning to think of alternative ways of heating their homes and getting around in vehicles. While it is not seen that the almighty SUV will go any time soon, there will be a segment of society who no longer can afford to run them. The higher crude prices and their end products go, the more people will be in a category of not being able to afford gasoline for SUVs. Also on the downside, there will be a rush on governments to subsidise fuel for newly poor people who can’t afford heating fuel for the winter. Like it or not, if the products are too expensive, demand will go down.
THE MARKETS: 20 SEPTEMBER 2007:
FTSE100: 6,429.00 down 31.04, FTSE250: 11,0130.80 down 122.47, SmallCap: 3,802.40 down 17.85
DJI: 13,766.70 down 48.86, NASDAQ: 2.654.29 down 12.19, S&P500: 1,518.75 down 10.28
INTERNATIONAL DEVELOPMENTS:
(North Pole)
Russia's Ministry of Nature Resources announced today that it has completed another stage in the work to substantiate the external border of the country’s continental shelf in the Arctic Ocean. The press release went on to say that this implies finding proof of the continental nature of Lomonosov Ridge and Mendeleyev Rise, and their being part of the continental edge of eastern Siberia. In the opinion of Russian geologists, "the Lomonosov Ridge and Mendeleyev Rise are an extension of the continental shelf of the Russian Federation." VNIIokeangeologiya, the leading marine geology research institute of the Federal Agency for Management of Mineral Resources /Rosnedra/ has carried out two field geological-geophysical studies, the press release said.
REGIONAL DEVELOPMENTS:
(Colombia and Brazil)
Petrobras now has a participating interest in four of the 13 Caribbean blocks offered in the Ronda Caribe 2007 auction, held by the Agência Nacional de Hidrocarburos (ANH), which is Colombia's hydrocarbons regulatory agency. Petrobras will operate for blocks RC-06 and RC-07, holding a 40 percent share in each. Hess Corp. and Colombia's Ecopetrol will each hold 30 percent interest in the blocks. Petrobras will also be a non-operating partner for RC-04 with 30 percent interest and RC-08 with 20 percent interest. BP will operate block RC-04 with 35 percent interest, and Ecopetrol will hold the remaining 35 percent interest. With 40 percent interest, India's ONGC will operate block RC-08, in which Ecopetrol will also hold 40 percent interest.
LOCAL DEVELOPMENTS:
Falklands Await Joint Oil Operators Meeting
By J. Brock (FINN)
A joint Oil Operator’s meeting will be held in the Falklands between Saturday 29 September and Saturday 6 October 2007
Participants attending are: from Desire Petroleum, Dr. Colin Phipps – Chairman, Dr. Ian Duncan – Chief Executive Officer, Mr. Stephen Phipps – Non Executive Director, from Mr. Lewis Clifton OBE – Non Executive Director, from Rockhopper Exploration, Mr. Sam Moody – Managing Director, Mr. Dave Bodecott – Exploration Manager, from Argos Resources, Mr. John Hogan – Chief Executive, Mr. Drew Irvine – Director, from Falkland Oil & Gas Ltd, Mr. Tim Bushell – Chief Executive Officer, Mr. Stephen Luxton – Resident Representative, from Borders & Southern Petroleum, Dr. Howard Obee – Chief Executive Officer, Mr. Bruce Farrer – Business Development Manager, from British Geological Survey, Dr. Phil Richards – FIG Offshore Consultant, from RPS Energy, Mr. Jon Perry – Environmental Manager, from FIG, Mrs. Phyl Rendell – Director of Minerals & Agriculture, Cllr. Andrea Clausen plus others as appropriate
On Saturday 29 September, the oil reps will arrive via Lan and transported to Stanley. The programme begins on Sunday 30 September, when the group will participate in an organised field trip. Another organised field trip will take place on Monday. From 8.00am-5.00pm on Tuesday the oil reps will have individual Company meetings with FIG. The big event on Wednesday 3 October from 8.30am-5.00pm is a Joint Oil Operators & Government Officials Meeting. A Briefing at MPA is scheduled for Thursday 4 October between 10.30am-1.00pm. From 2.00-4.00pm Individual Company meetings with FIG as required will be held and from 5.00-6.00pm there will be a Public Meeting in Court & Council Chambers
Friday 5 October will be a very busy day with a 9.00-10.30am Operators briefing with Councillors. Then from 10.30am-12.00 there will be another briefing with Heads of FIG Departments meeting with OperatorsFrom12.00-1.30pm there will be a Q & A Session followed by lunch at Chamber of Commerce. Then from 2.00-2.50pm Dr. Ian Duncan & Mr Jon Perry to talk to Community School children – Years 10 & 11, followed by 2.30-3.30pm when Dr. Phil Richards to talk to Infant/Junior School children – Year 5 & 6. From 3.30-4.30pm Operators will be meeting with Falklands Conservation.
After a very busy week, the Oil Company reps will depart the Islands via the weekly Lan Flight.
RELEVANT SHARE PRICES 20 SEPTEMBER 2007:
TLW: 573.50 up 24.00, DES: 28.00 down 1.25, FOGL: 165.00 down 1.50, RKH: 50.50 unchanged, BOR: 32.00 unchanged, PRE: 13.50 down 0.25, GBP: 9.13 unchanged, GPK: 420.00 up 1.00.
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