Falklands : Hydrocarbons Daily Record (01 November 2007)
Submitted by Falkland Islands News Network (Juanita Brock) 02.11.2007 (Article Archived on 16.11.2007)
One year ago today Light Sweet Crude traded at $58.03 and Brent Crude Traded at $58.71.
HYDROCARBONS DAILY RECORD (01 NOVEMBER 2007)
By J. Brock (FINN)
TODAY’S TOP STORIES:
Borders & Southern Plc are acquiring 3-D seismic data across its South Falkland Basin acreage offshore the Falkland Islands. Petroleum Geo-Services (PGS) are doing the survey using seismic vessel Ocean Explorer. PGS will acquire 1,500 sq km 3-D seismic data. The survey should take approximately four months to complete, depending on weather and sea conditions.
Source: Borders & Southern Plc
Rockhopper Exploration: Interpretation of the 3-D seismic data collected over Rockhopper Exploration Plc's PL032 and PL033 licenses in the Falkland Islands has revealed large fans and structural closures that could form targets for the next round of exploration drilling. The 3-D data were collected by CGGVeritas between November 2006 and January 2007. The Rockhopper 3-D survey covered an area of 328 square miles (850 sq km) and shows a number of large targets which could be drilled during the next phase. Amplitude mapping indicates the presence of prominent fan-shaped anomalies along the eastern basin margin at the level of the main post-rift source rock sequence.
Source: Rockhopper Exploration Plc
CRUDE PRICES Thursday, 01 November 2007:
Light Sweet Crude traded at $93.07 down 43 Cents on the New York Mercantile Exchange. Brent Crude was trading at $89.72 down 91 Cents on London’s ICE Futures Market.
ANALYSIS:
Fuel prices increased in the Falklands today and we know that tomorrow other prices will rise to reflect those increases. Oddly enough, aside from the slight decrease in the price of hydrocarbons products as a result of decreases in the price of crude this time last year, prices stayed the same. On 01 November 2006 Light Sweet Crude traded at $58.03 and Brent Crude traded at $58.71. There were calls on OPEC to decrease production to keep the price artificially high. Now this year the opposite is true. I would say that the fear mongers focused on the unknown to drive up prices and investors, anxious to make a profit followed suit.
While the tiger economies of India, China and Indonesia keep demand high while fuel prices are subsidised, demand will remain high. It is up to us to figure out how we are going to live on less hydrocarbons products.
THE MARKETS:
FTSE 100: 6,586.10 down 135.47, FTSE250: 11,526.30 down 139.72, SmallCap: 3,832.10 down 45.12
DJI: 13,567.87 down 362.14, NASDAQ: 2,794.83 down 64.29, S&P500: 1,508.44 down 40.94
REGIONAL DEVELOPMENTS:
(Brazil and Venezuela)
PETROBRAS, Brazil's state oil company, has decided against a proposal to help in the development of Venezuela's Mariscal Sucre - an offshore natural-gas field. The field is the source for a $20 billion Amazon pipeline to Brazil. PDVSA and PETROBRAS, have studied plans to send half the field's output of 34 million cubic meters a day to Brazil. The line would have started President Hugo Chavez's proposed “Great Southern Pipeline,'' a 5,000 kilometre network to bring Venezuelan reserves, South America's largest, throughout South America.
(100X Translation Service)
(Venezuela)
Several press articles say that Transocean Inc. has contracted its drill ship Deepwater Pathfinder at a day rate of US$600,000. The contract is set to run from June 2009 through October 2009. Further details will be forthcoming.
(100X Translation Service)
(Argentina and Uruguay)
The Latin American press reports that Argentina and Uruguay are seeking partners for the planned 10Mm3/d LNG re-gasification plant located near Montevideo. Ancap and Enarsa expect to receive 5Mm3/d of LNG. Ancap could sell its excess LNG to Argentina or other countries. The plant could be operational in 2011 or 2012.
(100X Translation Service)
RELEVANT SHARE PRICES:
(1800 LMT)
London Stock Exchange:
TLW: 626.00 down 12.00 DES: 28.50 up 0.25, FOGL: 140.00 up 0.50, RKH: 52.00 up 0.50, BOR: 37.50 unchanged, PRE: 15.00 up 1.00, GBP: 9.75 up 0.25, GPK: 425.00 unchanged, BLT 1778.00 down 53.00 RDSA: 2057 down 48.00, RDSB: 2048 down 47.00, RDSD: 39.21 unchanged.
New York Stock Exchange:
XOM: 88.50 down 3.49
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