Falklands : Hydrocarbons Daily Record Thursday 24 January 2008
Submitted by Falkland Islands News Network (Juanita Brock) 24.01.2008 (Article Archived on 07.02.2008)
Crude prices increased today because share prices increased.
HYDROCARBONS DAILY RECORD: THURSDAY, 24 JANUARY 2008
By J. Brock (FINN)
At 1930hrs LMT on Thursday, 24 January 2008 Light Sweet Crude was trading at $89.30 up $2.42on the New York Mercantile Exchange. Brent Crude was trading at $89.07 up $2.45 on London’s ICE Futures Market.
A BRIEF INVENTORY REPORT FOR THE WEEK ENDING 18 JANUARY 2008:
Crude: 285.1 million barrels up 2.3 million barrels
Gasoline: 281.1 million barrels up 5 million barrels
Distillates: 127.4 million barrels down 1.3 million barrels
Refinery Capacity: 86.5% down 0.6%
ANALYSIS:
Today specifically the increase in crude prices is due to the decline in distillates as reported by the US Department of Energy Administration in their weekly inventory report. Heating oil is an indicator during the northern winter just as gasoline is an indicator during the northern summer.
One would imagine that analysts will surmise that in order to diminish the supply of crude the price should increase. Wrong! Refinery capacity is also down this week and to fix the distillate problem means to increase refinery capacity – not the price of the raw product.
The past two and a half months has been spent re-charging the batteries and going over the past issues of HDR to see why crude prices peaked over $100.00 per barrel and to assess the damage to the world economy as a result. As predicted by HDR $100.00 crude created part of the straw fibre now breaking the camel’s back. Housing and sub-prime markets also contributed to the declining state of the world economy that we see today.
Certain well known analysts’ say they can’t pin-point why crude prices are so high but HDR has often said that it is greed stoking the engine of inflation and indifference to the needs of people that has caused the problem.
Using fear – geopolitics and dwindling supplies major factors in this – a select few who make money from higher crude prices have managed to get their way. Now, there is a reckoning that affects all of us.
It seems to me that there weren’t sufficient balances against those who helped to drive up the price of crude and that proper thought needs to be realised before we get into this situation again. People most affected need to take appropriate action including seeking viable alternatives to hydrocarbons for energy generation.
When people cannot afford to use hydrocarbons products such as gasoline and distillates – heating fuel, etc – is not the time to be thinking of alternatives like wind, water and solar power. The situation we find ourselves in only forces us to think of them, instead of exercising a little forward planning.
It wouldn’t be good for crude prices to hit rock bottom again but wise for them to reach a reasonable level and fluctuate around that level. Using alternative energy sources can help to keep crude prices down. As HDR stated before, when demand goes down, the price of crude goes down. Using alternatives helps demand to lower and we not only save the environment but also a few coins so financially strapped people can feed their families and keep warm at the same time.
SHARE PRICES AND THE MARKETS:
SHARE PRICESON THE ALTERNATIVE INVESTMENT MARKET: Thursday, 24 January 2008.
TLW: 570.00 up 30.50 DES: 24.50 up 1.00, FOGL: 102.50 up 7.00, RKH: 46.00 up 2.00, BOR: 36.75 up 3.50, PRE: 14.50 unchanged, GBP: 7.13 down 0.25, GPK: 436.00 down 2.00, BLT 1386.00 up 116.00, RDSA: 1838.00 up 97.00, RDSB: 1799.00 up 109.00, RDSD: 39.21 unchanged (Trading in Euros)
New York Stock Exchange:
XOM: 86.00 up 2.62 (Trading in USD)
THE MARKETS
FTSE100: 5,875.80 up 286.45, FTSE250: 9,856.30 up 362.57 SmallCap: 3,134.80 up 77.87.
DJI: 12,378.61 up 108.44, NASDAQ: 2,360.92 up 44.51, S&P500: 1,352.07 up 13.47
INTERNATIONAL DEVELOPMENTS:
(Tullow Oil)
In a trading statement yesterday ahead of annual results Tullow Oil said that it had experienced a transformational change in its business during 2007 driven by exceptional exploration success and supported by strong oil and gas pricing.
http://www.thisisnorthscotland.co.uk/displayNode.jsp?nodeId=149212&command=displayContent&sourceNode=150624&contentPK=19649987&folderPk=85744&pNodeId=150607
REGIONAL DEVELOPMENTS:
(Argentina)
Argentine state-run energy firm Enarsa on Monday extended a call for bids for nine smaller-scale power generation projects, following a similar move late last year.
http://www.easybourse.com/bourse-actualite/alstom/argentina-government-extends-call-for-more-small-scale-FR0010220475-377345
(Chile)
Financing of some $1.2 billion for the Quintero liquid natural gas (LNG) project, considered key to supplying Chile's future energy needs, will be ready by early April, the developing consortium said on Wednesday.
http://www.reuters.com/article/rbssEnergyNews/idUSN2365232820080123
(Brazil)
A new multi-year contract with Brazilian state oil giant Petrobras has spurred the expansion of Houston-based Pride International's deepwater fleet with a new advanced ultra-deepwater drillship for international operation. Scheduled for delivery in the first quarter of 2011, the rig will be the third ultra-deepwater drillship project for Pride, all constructed at the Samsung Heavy Industries in Geoje, South Korea.
http://www.energycurrent.com/index.php?id=2&storyid=8363
(Venezuela)
Rafael Ramirez, president of Venezuelan state-oil enterprise Petroleos de Venezuela (PDVSA), and Norwegian oil company StatoilHydro Executive Director Helge Lund signed an agreement to quantify and certify oil reserves in the Orinoco Strip.
http://www.reuters.com/article/rbssEnergyNews/idUSL2448341320080124
LOCAL DEVELOPMENTS:
The survey work has been completed and we await further developments as to when a suitable rig or drill ship will be brought to the Falklands to begin exploratory drilling. Best estimates point to the later part of 2008 but this is not certain. Desire Petroleum plc can begin exploratory drilling at any time.
As you can see, the long awaited re-vamp is realised and hopefully readers will be able to take advantage of the improvements. Please let HDR have your comments about the new format.
LOCAL LINKS:
http://www.fogl.com
http://www.desireplc.co.uk
http://www.bordersandsouthern.com
http://www.rockhopperexploration.co.uk
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