Falklands : Hydrocarbons Daily Record Thursday, 23 October 2008
Submitted by Falkland Islands News Network (Juanita Brock) 24.10.2008 (Article Archived on 07.11.2008)
Crude prices increased today on incessant speculation that OPEC will cut production. This is expected but shouldn’t put anyone in panic mood. Demand will simply drop if people can’t afford to buy hydrocarbons products.
HYDROCARBONS DAILY RECORD THURSDAY, 23 OCTOBER 2008
By J. Brock (FINN)
At 1930hrs LMT on Thursday, 23 October 2008 Light Sweet Crude was trading at $67.84 up $1.09 on the New York Mercantile Exchange. Brent Crude was trading at $65.92 up $1.40 on London’s ICE Futures Market.
US DEPARTMENT OF ENERGY ADMINISTRATION INVENTORY REPORT FOR WEEK ENDING 17/10/08.
http://tonto.eia.doe.gov/oog/info/twip/twip.asp
ANALYSIS:
Crude prices increased today on incessant speculation that OPEC will cut production. This is expected but shouldn’t put anyone in panic mood. Demand will simply drop if people can’t afford to buy hydrocarbons products. Ever resilient, people needing energy will seek alternative products and demand for hydrocarbons products will sink even further.
As crude and product prices go up the market for them will shrink and more people will be disenfranchised from it.
With the northern winter soon to be sprung upon people who can’t afford to heat their homes – that is if they have one – will be at risk of health problems on a monumental scale. What makes the scenario even worse is that people who want to increase crude prices don’t know what it is like to go hungry.
From a practical point of view, storing expensive product won’t do anyone any good as it will just accumulate when even more people can’t afford to buy it. Yes, cut production – but cut prices as well.
RELATED ARTICLES:
(Crude Prices)
Oil prices rebounded Thursday as OPEC prepared to cut production to shore up prices that have sagged in the fallout of an escalating global financial crisis.
http://afp.google.com/article/ALeqM5i-olYyFiUG_9-hvBPyg9FTbQcm4A
(Another OPEC?)
Russia, Iran and Qatar, the world’s three biggest natural gas producers, publicly said they intend to form a natural gas cartel that would mimic OPEC for oil. Irwin Greenstein says this could create a major inflation headache across Europe and Asia. And that could send investors running back to the US.
http://www.contrarianprofits.com/articles/how-an-opec-for-natural-gas-could-help-us-markets/7009
AIM: 23/10/2008
TLW: 492.25 up 7.50, DES: 25.75 down 3.25, FOGL: 62.00 down 8.00 RKH: 13.50 unchanged BOR: 18.25 down 2.50, BPC: 3.13 unchanged, PRE: 8.13 unchanged GBP: 4.38 down 0.25, GPK: 327.50 unchanged, BLT 823.00 down 57.00, RDSA: 1551.00 down 77.00, RDSB: 1499.00 up 80.00
NYSE 23/10/2008
XOM: 70.39 up 5.82 (Trading in USD)
THE MARKETS: 23/10/2008
FTSE100: 4,087.83 up 46.94, FTSE250: 6,128.65 down 103.67, SmallCap: 1,995.79 down 45.88
DJI: 8,691.25 up 172.04, NASDAQ: 1,603.91 down 11.84, S&P500: 908.11 up 11.33
INTERNATIONAL DEVELOPMENTS:
(Norway)
Faroe Petroleum Plc. said the Norwegian Marsvin exploration well did not encounter movable hydrocarbons, though it found good reservoir rocks.
http://www.hemscott.com/news/static/tfn/item.do?newsId=68240589821217
StatoilHydro has confirmed oil and gas on the Pan-Pandora prospect on production license 120 and 120B in the Norwegian North Sea.
http://www.ogj.com/display_article/343360/120/ARTCL/none/ExplD/1/StatoilHydro-confirms-oil,-gas-in-Pan-Pandora/
LOCAL DEVELOPMENTS:
(Rockhopper Exploration)
Oil Company Rockhopper Exploration played down rumours that BHP has bought into its Falklands assets, but admitted it is in talks with a number of potential farm-out partners.
http://www.sharecast.com/cgi-bin/sharecast/story.cgi?story_id=2413053
Rockhopper Exploration Thursday notes the report in the Financial Times Thursday entitled "Smaller producers get ready for consolidation".
http://www.tradingmarkets.com/.site/news/Stock%20News/1964161/
PRESS RELEASE
23 October 2008
Financial Times Report
Rockhopper Exploration plc (“Rockhopper” or the “Company”), the AIM traded (RKH) oil and gas explorer with licences in the North Falkland Basin, notes the report in the Financial Times today entitled "Smaller producers get ready for consolidation".
The report wrongly quotes BHP Billiton as having bought into Rockhopper's assets.
Rockhopper holds a 100% interest in North Falkland Basin Licences PL023, PL024 PL032 and PL033 and holds a 7.5% interest in Licences PL003 and PL004.
Technical work done on the Rockhopper licences has indicated Director's estimates of un-risked recoverable reserves of 4.3 billion barrels and in addition has identified a multi tcf gas prospect. The acreage has both proven oil and proven gas and is located in relatively shallow water.
Work done at the time of admission to AiM indicated that a discovery on Rockhopper acreage could be commercially viable at oil prices as low as US$25 per barrel.
Rockhopper has no debt and had cash of over £4 million at the end of September 2008 (Rockhopper's half year end). The financial position of the Company has been unaffected by the recent turmoil in global banking.
While Rockhopper has not entered into any agreement with BHP, it can confirm that it is in discussion with a number of potential farm-out partners and is also continuing the search for a rig in conjunction with other operators in the North Falkland Basin.
Source – Rockhopper Exploration
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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