Falklands : Hydrocarbons Daily Record Thursday, 13 March 2008
Submitted by Falkland Islands News Network (Juanita Brock) 13.03.2008 (Article Archived on 27.03.2008)
Thank goodness it's oil and not water that is considered to be a safe place to invest money.
HYDROCARBONS DAILY RECORD THURSDAY, 13 MARCH 2008
By J. Brock (FINN)
At 1930hrs LMT on Thursday, 13 March 2008 Light Sweet Crude was trading at $109.92 up $1.17 on the New York Mercantile Exchange. Brent Crude was trading at $106.27 up $1.02 on London’s ICE Futures Market.
ANALYSIS:
CRUDE PRICES SOAR – ARE AIR AND WATER NEXT?
By J. Brock (FINN)
One reason why crude prices are extortionately high is the level of investment in “black gold” and even the yellow stuff is reaching record highs. Why do this, when there are other items in which to invest? Obviously there aren’t as many safe investments around as there were last year at this time.
HDR feels that investments in energy, with most of us dependant on it, can be a good thing if it doesn’t drive up the cost of hydrocarbons products for people who can barely afford them. This is what’s happening as investors are looking for safe places to put their money.
Would that they could invest in real luxury products and not the stuff that keeps us warm in the winter and helps us get around. Higher crude prices add money to everything that depends on it – food, clothing, shelter, warmth – you name it. Aside from the sub-prime mortgage mess, it is higher crude prices leading us ever closer to the “R” word.
I am thankful that as yet neither air nor water can be considered safe investments. While living in cold houses is unhealthy, going without either air or water can lead to more morbid things.
Invest in gold, art, vintage vehicles – people but it is high time crude prices came down.
SHARE PRICES AND THE MARKETS:
SHARE PRICES ON THE ALTERNATIVE INVESTMENT MARKET: Thursday, 13 March 2008.
TLW: 629.50 down 16.50, DES: 72.75 up 1.25, FOGL: 134.00 down 0.50 RKH: 85.00 up 3.00, BOR: 54.50 up 2.50 PRE: 13.25 unchanged, GBP: 6.88 unchanged, GPK: 406.00 unchanged, BLT 1534.00 down 30.00 RDSA: 1719.00 down 23.00 RDSB: 1687.00 down 21.00
New York Stock Exchange:
XOM: 87.05 up 1.08 (USD)
THE MARKETS (13/03/08)
FTSE100: 5,692.40 down 84.01, FTSE250: 9,801.50 down 187.94 SmallCap: 3,125.60 down 42.33
DJI: 12,145.74 up 35.50 NASDAQ: 2,263.61 up 19.74 S&P500: 1,315.48 up 6.71
INTERNATIONAL DEVELOPMENTS:
(Canada) The 2008 World Heavy Oil Congress (WHOC), the international technical and economical conference specializing in the heavy oil industry, welcomed over 900 Congress delegates plus more than a 1,000 in attendance at the three-day exhibition for the first time in Canada. Hosted in Edmonton, Alberta, which is dubbed the "Gateway to the Oil Sands", this year's WHOC set record attendance since its first forum in Beijing, China in 2006. In conjunction with this year's theme, The Challenges of Managing Success, and the Congress mandate, Unconventional Oil Challenging Conventional Expectations, key leaders of this sector analyzed the challenges, the trends, and the main guidelines for the future of the petroleum industry.
http://www.newswire.ca/en/releases/archive/March2008/13/c3476.html
REGIONAL DEVELOPMENTS:
(Argentina)
The Argentine Government has increased the natural gas export duty from 45% to 100% of the highest contracted import price of natural gas into Argentina. Currently, it is expected that this would represent an export duty of approximately US$7/mmbtu. Our gas contracts provide that the gas suppliers must pay any duties levied by the government of Argentina. Methanex has not received official notification that gas supply would be restored to its plants.
http://money.cnn.com/news/newsfeeds/articles/marketwire/0374264.htm
(Brazil)
Brazil’s government managed oil corporation Petrobras and Shell have signed a liquefied natural gas (LNG) “firm” supply agreement to furnish the Pecém (Ceará) and Baía de Guanabara (Rio de Janeiro) re-gasification terminals.
http://www.petroleumworld.com/story08031314.htm
(Ecuador)
Ecuador will have to refund as much as $160 million in value-added tax paid by U.S.-based Occidental Petroleum, Economy Minister Fausto Ortiz said here Wednesday.
http://www.tradingmarkets.com/.site/news/Stock%20News/1196246/
(Chile)
The state oil enterprises of Chile and Argentina will soon begin joint exploration of new oil fields in Argentine territory, a diplomat said on Wednesday.
http://english.people.com.cn/90001/90778/90858/90864/6372404.html
(Venezuela)
Pdvsa Rafael Ramírez in a communiqué said the conglomerate has not stopped shipping crude oil to Louisiana-based Chalmette refinery, "but (US oil major) Exxon Mobil says it does not want that crude oil."
http://english.eluniversal.com/2008/03/13/en_eco_art_pdvsa-is-selling-pet_13A1430519.shtml
Fires, accidents, and unplanned maintenance shutdowns have become commonplace at Venezuela’s refineries. The problems are symptomatic of the ailments afflicting state-owned oil giant PDVSA: lack of qualified personnel and a shortage of cash. And if PDVSA (which operates all domestic refineries) cannot reliably manage its existing refineries, how will it ever hope to expand its domestic refining capacity beyond the current 1.28 million barrels per day?
http://www.energytribune.com/articles.cfm?aid=813
LOCAL DEVELOPMENTS:
(Desire Petroleum)
With oil now trading at well over $100 a barrel and speculation that there could be more than 14bn barrels in supply offshore of the islands, shares in the stock have rallied. However, some of our customers appear divided on the stock and have taken profits this week, perhaps concerned by reports that record oil prices are likely to be accompanied by high production costs and expensive transportation from the remote oil rigs. Nevertheless, with petrol duty on everyone’s lips following the Budget, share price in Desire Petroleum ambulance chases, with shares trading up by over 190% this year on last.
http://www.easier.com/view/Finance/Investments/Stock_Market/article-168227.html
LOCAL LINKS:
http://www.fogl.com
http://www.desireplc.co.uk
http://www.bordersandsouthern.com
http://www.rockhopperexploration.co.uk.
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