Falklands : Hydrocarbons Daily Record: Thursday, 06 March 2008
Submitted by Falkland Islands News Network (Juanita Brock) 07.03.2008 (Article Archived on 21.03.2008)
Crude prices are up again and someone is making money while the rest of us are heating one day and eating the next.
HYDROCARBONS DAILY RECORD THURSDAY, 6 MARCH 2008
By J. Brock (FINN)
At 1930hrs LMT on Thursday, 06 March 2008 Light Sweet Crude was trading at $105.47 up 95 Cents on the New York Mercantile Exchange. Brent Crude was trading at $102.61 up 97 Cents on London’s ICE Futures Market.
ANALYSIS:
It is with grief that people in the street read reports of high crude prices and realize that soon they will not be able to afford to pay heating bills as well as a mortgage this winter. The old adage of heat one day and eat the next won’t work if prices for hydrocarbons products sky-rocket as they have over the past six months. Someone at the top is getting very wealthy while the rest of us are getting colder with each price increase. Hope springs in that when these people price themselves out of the market the cost per barrel of crude could come down.
Factors causing the price hike remain OPEC’s decision not to increase production and the sharp decline in US crude supplies.
SHARE PRICES AND THE MARKETS:
SHARE PRICES ON THE ALTERNATIVE INVESTMENT MARKET: Thursday, 06 March 2008.
TLW: 640.50 down 1.50, DES: 75.25 up 4.00, FOGL: 126.50 down 3.50 RKH: 76.00 down 3.00, BOR: 63.75 down 8.25, PRE: 12.75 unchanged, GBP: 6.88 down 0.25, GPK: 405.00 down 14.00, BLT 1680.00 up 23.00, RDSA: 1733.00 down 39.00 RDSB: 1699.00 down 41.00
New York Stock Exchange:
XOM: 84.51 down 2.68 (USD)
THE MARKETS (06/03/08)
FTSE100: 5,706.40 down 87.06, FTSE250: 9,990.80 down 153.33 SmallCap: 3,230.70 down 9.93
DJI: 12,040.39 down 214.60 NASDAQ: 2,220.50 down 52.31 S&P500: 1,304.34 down 29.36
INTERNATIONAL DEVELOPMENTS:
(Mexico)
Mexican energy laws put a ``straitjacket'' on Petroleos Mexicanos, the state-owned oil company, and changes must be made before the company can successfully drill in deep water, said Chief Executive Officer Jesus Reyes Heroles in a radio interview.
http://www.bloomberg.com/apps/news?pid=20601086&sid=aB.0SbjxY6Lo&refer=latin_america
(Turkmenistan)
Turkmen President Gurbanguly Berdimuhamedov visited a highly promising hydrocarbon field of South Yoloten-Osman, 50 km away from the town of Mary, during his working trip to Mary province of March 4.
http://www.turkmenistan.ru/?page_id=3&lang_id=en&elem_id=12314&type=event&sort=date_desc
(Russia)
Proven reserves of Lukoil are 15.7 billion barrels of oil and 27.9 trillion cubic metres of natural gas, according to an independent auditing of the company reserves as of the beginning of the current year conducted by Miller and Lents (USA), the Lukoil press service has reported.
http://www.itar-tass.com/eng/level2.html?NewsID=12451303&PageNum=0
(United States)
Gasco Energy GSX today announced financial and operating results for the fourth quarter and full-year ended December 31, 2007.
http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=PR&date=20080304&id=8281631
REGIONAL DEVELOPMENTS:
(Brazil)
Today, Fitch issued a special report, titled 'Brazilian Alternative Fuels: High Oil Prices Plus Cost Advantages Equals Growth.' The report provides snapshots of the biofuel sector in Brazil, highlighting major industry drivers, challenges, current and future players, as well as domestic and global prospects. Fitch believes that Brazil's significant competitive advantages and the growing global demand for alternative fuels should allow its biofuel industry to increase global production and exports
http://www.businesswire.com/portal/site/google/?ndmViewId=news_view&newsId=20080306005726&newsLang=en
(Ecuador)
I remember when Rafael Correa visited us, months before the electoral campaign when he was thinking of running as a candidate for the Presidency of Ecuador. He had been the Minister of the Economy in the government of Alfredo Palacio, a surgeon with professional prestige who had also visited us as Vice President, before becoming the President in an unexpected situation that took place in Ecuador. He had been receptive to a program of ophthalmologic operations that we offered him as a form of cooperation. There were good relations between our two governments.
http://bellaciao.org/en/spip.php?article16690
(Venezuela)
Exxon Mobil Corp., the world's biggest oil company, must wait one more week to see whether a U.K. judge will uphold a freeze it sought on as much as $12 billion of assets belonging to Petroleos de Venezuela SA.
http://www.bloomberg.com/apps/news?pid=20601086&sid=a2JHfBj9TuOg&refer=news
LOCAL DEVELOPMENTS: LOCAL EXPLORATION SHARES: TIME TO HANG ON By J. Brock (FINN) I remember trying to give people courage about Desire’s shares back when they went on sale in the late ‘90s. The advice I gave was not to spend the rent money (mortgage money is applicable today) on these shares but to use disposable income for them. This advice rings true today when valued Desire, FOGL, Rockhopper and Desire shares are at a premium. My best advice to shareholders is to hang on to them, especially now when exploratory drilling could reveal vast reservoirs of crude. With daily living costs rising exponentially it is becoming more difficult to skimp on the food money to save for shares – well, OK if you are dieting. I hear the water rate won’t be going up this year bur I suggest people wanting shares in local exploration companies wait until the price drops and then get in, rather than buying when prices are high and selling when share prices decline. For those with shares in local exploration companies – hold on to them. They are worth every penny you spent.
LOCAL LINKS:
http://www.fogl.com
http://www.desireplc.co.uk
http://www.bordersandsouthern.com
http://www.rockhopperexploration.co.uk.
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