Falklands : Hydrocarbons Daily Record Tuesday, 19 August 2008
Submitted by Falkland Islands News Network (Juanita Brock) 20.08.2008 (Article Archived on 03.09.2008)
Crude prices strengthened today on a weakening US Dollar. The gasoline supply is also causing concerns as well as the economic situation in general. Finally there are worries that OPEC will cut production.
HYDROCARBONS DAILY RECORD TUESDAY, 19 AUGUST 2008
By J. Brock (FINN)
At 1930hrs LMT on Tuesday, 19 August 2008 Light Sweet Crude was trading at $114.53 up $1.66 on the New York Mercantile Exchange. Brent Crude was trading at $113.25 up $1.31 on London’s ICE Futures Market.
ANALYSIS:
Crude prices strengthened today on a weakening US Dollar. The gasoline supply is also causing concerns as well as the economic situation in general. Finally there are worries that OPEC will cut production.
Analysts have begun to report a drop in product prices at the retail end, so it looks like less expensive crude is beginning to be processed.
Gasoline supplies will dwindle with lower prices at the pump. More people will be able to afford it. However, this shouldn’t be used to increase prices for people who need transport and to heat their houses during the up coming northern winter. There needs to be a steady decline in product prices to help the economy recover.
It is hoped that people with funds can seek alternative energy sources and equipment. This should help to ease demand and keep prices falling.
RELATED ARTICLES:
(Crude Prices)
Crude oil rose more than $1 a barrel as a weakening dollar prompted investors to purchase commodities as an inflation hedge.
http://www.bloomberg.com/apps/news?pid=20601082&sid=aX1aKOIMf4p4&refer=canada
(OPEC)
Venezuela will propose production cuts at the next OPEC meeting in September if oil prices continue to fall, Energy and Petroleum Minister Rafael Ramirez said Tuesday.
http://www.iii.co.uk/news/?type=afxnews&articleid=6857228&action=article
SHARE PRICES ON THE ALTERNATIVE INVESTMENT MARKET: Tuesday, 19 August 2008.
TLW: 694.00 down 8.00, DES: 80.00 up 5.00, FOGL: 124.50 up 1.50 RKH: 64.50 down 0.25, BOR: 58.25 up 1.25 PRE: 12.00 unchanged GBP: 7.13 down 0.13 GPK: 419.00 unchanged, BLT 1520.00 down 17.00, RDSA: 1796.00 down 26.00, RDSB: 1757.00 down 27.00
New York Stock Exchange:
XOM: 78.03 down 1.50 (Trading in USD)
THE MARKETS (19/08/08)
FTSE100: 5,320.40 down 129.79 FTSE250: 8,867.60 down 256.43 SmallCap: 2,780.80 down 37.82
DJI: 11,348.55 down 130.84 NASDAQ: 2,384.36 down 32.62 S&P500: 1,226.72 down 11.88
US DEPARTMENT OF ENERGY ADMINISTRATION INVENTORY REPORT FOR WEEK ENDING 08/08/08
http://tonto.eia.doe.gov/oog/info/twip/twip.asp
INTERNATIONAL DEVELOPMENTS:
(North Sea Oil)
StatoilHydro has let a $100 million contract to Subsea 7 to design and install Troll B gas injection facilities to improve oil recovery at the country's largest gas field in the Norwegian North Sea. Precommissioning will take place in 2010.
http://www.ogj.com/display_article/337358/7/ONART/none/DriPr/1/StatoilHydro-lets-contract-for-Troll-B-gas-injection/
REGIONAL DEVELOPMENTS:
(South America General)
Research and Markets
(http://www.researchandmarkets.com/research/1d6462/bg_group_plc_lng_o) has announced the addition of the "BG Group Plc LNG Operation Asset Summary Report" report to their offering.
http://www.streetinsider.com/Press+Releases/Research+and+Markets:+BG+Group+Plc+LNG+Operation+Asset+Summary+Report/3926030.html
(Brazil)
-- Petroleo Brasileiro SA, Brazil's state-controlled oil company, is considering using drills in the country's oil fields that were initially planned for use in the Gulf of Mexico, Valor Economico said, citing executive director for exploration and production, Guilherme Estrella.
http://www.bloomberg.com/apps/news?pid=20601086&sid=awo8yv2xgqPs&refer=news
(Peru)
Peruvian offshore oil and gas driller Petro-Tech Peruana is in the sights of China's top two oil firms, CNPC and Sinopec Group, with a rare joint takeover bid worth up to $2.5 billion.
http://www.guardian.co.uk/business/feedarticle/7736399
LOCAL DEVELOPMENTS:
Desire deal gives the Falklands that ‘feel good’ factor
An Editorial by J. Brock (FINN)
The long wait discover Desire’s farm-in partner is over and after years of frustration the Company announced last week that it has signed a deal with the shipping and drilling firm Arcadia Petroleum.
Arcadia, and a third party, Rockhopper Exploration, will cover the £10m or so it costs to drill a couple of wells, while Desire will retain 57.5 per cent of the site, which seismic shows has the potential to provide as much as 7.8tr cubic feet of gas.
The deal gives Desire the chance of getting at the gas at miniscule cost, avoiding the prospect of asking investors for more money. Desire shares on Friday were down 3.7t and are trading at 79.75. Today shares are up 5 to 80.00
Islanders can now see the light at the long tunnel of waiting and there is renewed hope that business in all sectors will pick up. Locals who have invested in Desire Petroleum will see their money increase as the drilling gets underway. Natural gas will be a good find but Desire also has prospects that could contain crude and this makes it doubly important for a drill-ship or rig to begin working in the North Falkland Basin.
Thanks for hanging in there!
LOCAL LINKS:
http://www.fogl.com
http://www.desireplc.co.uk
http://www.bordersandsouthern.com
http://www.rockhopperexploration.co.uk.
IMPORTANT LINK:
http://www.onegeology.org/
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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