Falklands : Hydrocarbons Daily Record Thursday, 22 May 2008
Submitted by Falkland Islands News Network (Juanita Brock) 23.05.2008 (Article Archived on 06.06.2008)
At the beginning of today’s session crude prices surged due to an article in the Wall Street Journal with a representative of the Paris-based International Energy Agency that indicated oil companies were not investing enough in ageing oil infrastructure. However, prices declined to close much lower at news of Petrobras striking more oil in its TUPI field.
HYDROCARBONS DAILY RECORD THURSDAY, 22 MAY 2008
By J. Brock (FINN)
At 1930hrs LMT on Thursday, 22 May 2008 Light Sweet Crude was trading at $133.17 up $4.19 on the New York Mercantile Exchange. Brent Crude was trading at $132.70 up $4.86 on London’s ICE Futures Market.
ANALYSIS:
At the beginning of today’s session crude prices surged due to an article in the Wall Street Journal with a representative of the Paris-based International Energy Agency that indicated oil companies were not investing enough in ageing oil infrastructure. However, prices declined to close much lower at news of Petrobras striking more oil in its TUPI field.
Like OPEC, the US Government is showing concerns that crude prices are too high and are interviewing oil company executives at the committee level to find out why this is happening and what can be done about it.
RELATED ARTICLES:
(Tupi Field)
In a significant development on Thursday, Brazil’s state-run oil major Petrobras announced it has discovered large oil deposits round 250 km off the coast of Sao Paulo state.
The Tupi discovery in Sao Paulo, on the shelf of the country’s southeastern coast, announced in November, holds estimated reserves of around 8 billion barrels.
http://www.commodityonline.com/news/topstory/newsdetails.php?id=8656
(Analysis)
Despite all of the dire predictions about the price of oil, the truth is that it will go down, all markets do. What we are witnessing is the last stages of a buying frenzy as part of a commodities bubble.
http://www.petroleumworld.com/Lag08052201.htm
(Non OPEC Aligned Oil Producers)
Oil production from countries outside OPEC is stagnating despite a more than sixfold rise in oil prices since 2002, driven partly by the failure of non-OPEC producers to deliver a lot more oil.
http://www.forbes.com/reuters/feeds/reuters/2008/05/22/2008-05-22T124459Z_01_L22759577_RTRIDST_0_ENERGY-NONOPEC-POLL.html
(OPEC)
OPEC chief Abdala El Badri on Thursday said members were unhappy with surging prices he blamed on speculators and a weak US dollar.
http://afp.google.com/article/ALeqM5j2yTiHpi-2-qua2w1YCBm-_8_nfA
SHARE PRICES ON THE ALTERNATIVE INVESTMENT MARKET: Thursday, 22 May 2008.
TLW: 956.00 down 13.00, DES: 104.75 up 11.00, FOGL: 162.00 down 2.50 RKH: 107.50 up 1.50, BOR: 111.50 up 4.00 PRE: 13.75 unchanged, GBP: 9.25 down 0.13, GPK: 429.00 unchanged, BLT 2110.00 up 44.00, RDSA: 2196.00 down 46.00 RDSB: 2169.00 down 43.00
New York Stock Exchange:
XOM: 92.51 down 1.16 (USD)
THE MARKETS (22/05/08)
FTSE100: 6,181.60 down 16.48, FTSE250: 10, 186.90 up 21.07 SmallCap: 3,178.20 down 20.44
DJI: 12,625.62 up 24.43 NASDAQ: 2,464.68 up 16.31 S&P500: 1,394.35 up 3.64
US DEPARTMENT OF ENERGY ADMINISTRATION INVENTORY REPORT FOR WEEK ENDING 16/05/08
http://tonto.eia.doe.gov/oog/info/twip/twip.asp
INTERNATIONAL DEVELOPMENTS:
(United States)
Buffalo Resources Corp. ("Buffalo" or the "Company")(TSX VENTURE:BFR) wishes to announce the completion of the drilling phase on its Pincher Creek 13-28 Mississippian horizontal well. The well, spudded on March 8, 2008, was drilled to a vertical depth of 3,742 metres. Subsequently, two separate horizontal legs were drilled into the Mississippian formation for a total of 671 metres. The horizontal sections of the wellbore were drilled under-balanced with natural gas, utilizing a closed system to recover all produced hydrocarbons. Natural gas from the Mississippian formation was encountered throughout the under-balanced horizontal drilling operation.
http://www.stockhouse.com/News/CanadianReleasesDetail.aspx?n=6910710
(Government Action)
The government today came under renewed pressure to take action over the cost of fuel as the average price of a litre of unleaded petrol reached 113.67p.
http://www.guardian.co.uk/uk/2008/may/22/transport.transport
(Nicaragua)
Norwood Resources Ltd. (the "Company") is pleased to report that it has identified significant hydrocarbons in its third well, the Maderas Negras # 1 well, in Nicaragua. The well was drilled to a depth of 6400 ft to test sands of the Paleocene Brito Formation. Potential net hydrocarbon pay ('net pay') of 138 feet has been identified based on Schlumberger's logs and ELAN processing using criteria limits for porosity of 10% or greater and hydrocarbon saturations of 40% or greater. Porosities in these reservoirs ranged from 10% to greater than 30%. The logging data will be further calibrated to the 60 feet of whole-core sample retrieved during drilling, which is currently being analyzed by Core Labs in Houston, Texas.
http://www.earthtimes.org/articles/show/norwood-identifies-138-feet-of,405991.shtml
REGIONAL DEVELOPMENTS:
(Argentina and Venezuela)
Daniel Uzcátegui, former Vice-President of state-run oil holding Petróleos de Venezuela S.A. (Pdvsa) and his son Diego were exempted from prison in exchange of a bail.
http://english.eluniversal.com/2008/05/22/en_pol_art_ex-pdvsa-top-officer_22A1598839.shtml
(Brazil)
Petrobras announces that the consortium formed by Petrobras (66% - block BM-S-8 operator), with the participation of Shell (20%), and Galp Energia (14%) in ultra-deep Santos Basin waters, has proved the presence of oil in pre-salt reservoirs via well 1-BRSA-532A-SPS (1-SPS-52A). Preliminary analyses indicate oil gravity is between 25 and 28 ºAPI, comparable to that of the other pre-salt oils found in the Santos Basin.
http://www.oilvoice.com/n/Petrobras_Reports_New_Oil_Accumulation_Discovered_in_the_Santos_Basin_PreSalt_Layer/fb922ff9.aspx
(Ecuador)
Petroecuador says Adm. Luis Jaramillo will replace Adm. Fernando Zurita as president, who resigned Tuesday after failing to meet oil production goals set by President Rafael Correa.
http://www.iht.com/articles/ap/2008/05/22/business/LA-FIN-Ecuador-Oil.php
The president of Ecuador's state-owned petroleum company has resigned after new figures promised a fresh decline in oil production from Opec's newest member.
http://money.ninemsn.com.au/article.aspx?id=567266
LOCAL DEVELOPMENTS:
VAN DER VEER WON’T BE DRAWN ON FALKLANDS OIL PARTICIPATION
By J. Brock (FINN)
For several months now speculation has been ripe that Royal Dutch Shell would farm-in or take over Borders and Southern’s tranches in the South Falkland Basin. Today Jeroen Van der Veer, Chief Executive of Royal Dutch Shell was questioned by several journalists on various issues concerning his Company. Two journalists questioned him specifically about the hydrocarbons industry in the Falklands.
Mr. Van der Veer’s answers are below. Please follow the link to read the rest of this very informative article.
Q: David Turver
Are you considering any form of transaction with Borders and Southern Petroleum to enable Shell (or Woodside) to have a stake in drilling in the South Falklands Basin? Are you considering any deal regarding any of the Falklands acreage?
A: Jeroen van der Veer:
As you can understand, we never comment on questions about future acquisitions. We have no upstream assets on or around the Falklands. We did have some acreage, but relinquished it in 1999 following some initial exploration activity.
More generally in terms of our exploration strategy, we look for basins that can give us the kind of potential for half a billion barrels, then we like to have significant production, say over 100,000 barrels of oil equivalent that we can bring in for Shell.
In terms of exploration acreage, last year we bought 43,000 square kilometres of new, high quality acreage. This is an area roughly the same size as the Netherlands. This year we have brought acreage in Australia, and in Alaska where we won 275 of the 302 blocks in the Chukchi Sea. We have also continued to strengthen our position in the Gulf of Mexico, winning eight blocks in two new lease sales.
Q: Ian Pemberton
What are your thoughts on an impending oil campaign in the waters around the Falklands islands? Shell has been there once before and do you believe they will return or if not, that a new oil province will be proven?
A: Jeroen van der Veer:
We have no upstream assets on or around the Falklands. We did have some acreage, but relinquished it in 1999.
I can’t comment in terms of future interest, but more generally in terms of our exploration strategy, we look for basins that can give us the kind of potential for half a billion barrels.
http://business.timesonline.co.uk/tol/business/industry_sectors/natural
_resources/article3985479.ece
LOCAL LINKS:
http://www.fogl.com
http://www.desireplc.co.uk
http://www.bordersandsouthern.com
http://www.rockhopperexploration.co.uk.
DISCLAIMER:
The sources for related articles come from a variety of websites so that readers can get as wide a selection of views as possible. HDR does not necessarily align itself with any of the views expressed
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