Falklands : Hydrocarbons Daily Record Sunday, 10 August 2008
Submitted by Falkland Islands News Network (Juanita Brock) 10.08.2008 (Article Archived on 24.08.2008)
With the OPEC meeting about a month away speculation is ripe that crude production could be cut back due to the falling price per barrel.
HYDROCARBONS DAILY RECORD SUNDAY, 10 AUGUST 2008
By J. Brock (FINN)
At 1930hrs LMT on Friday, 08 August 2008 Light Sweet Crude was trading at $115.20 down $4.82 on the New York Mercantile Exchange. Brent Crude was trading at $116.02 down $1.84 on London’s ICE Futures Market.
ANALYSIS:
With the OPEC meeting about a month away speculation is ripe that crude production could be cut back due to the falling price per barrel. It is doubtful that this will happen seeing that crude prices have been extortionately high for well over a year and it is time for prices fluctuate downwards to an optimum level of between $45.00 and $60.00 per barrel.
At lower prices demand will pick up. If crude supplies are cut and prices rise again the economic consequences for the man in the street will be dire with more cold houses and less transport this Northern winter.
For a country to offer $100.00 crude and then recommend a production cut is ill advised and not properly thought through.
RELATED ARTICLE:
(Crude Prices)
Crude oil prices dropped $5 on Friday to hit a three-month low below $115 a barrel as the dollar surged and falling global economic growth hit demand. This has prompted Venezuelan energy minister Rafael Ramirez to call for an OPEC production cut.
http://www.domain-b.com/investments/markets/general/20080809_opec.html
($100.00 Crude)
A Repeat
The roughly 400 million dollars (255 million euros) to be raised from the sale of this oil will be deposited in a bank account in Madrid, which will be used by Venezuela to pay for the imports, he said in an interview with Spanish public television TVE.
http://www.mmorning.com/ArticleC.asp?Article=6057&CategoryID=7
(Crude Supply)
The think-tank at Chatham House has concluded that “incessant demand combined with inadequate investment by oil companies in raising output, rather than dwindling supplies underground, risked driving up prices to more than two-thirds current levels.”
http://www.falklandnews.com/public/story.cfm?get=5089&source=3
SHARE PRICES ON THE ALTERNATIVE INVESTMENT MARKET: Friday, 08 August 2008.
TLW: 706.00 down 35.00, DES: 80.25 up 0.50, FOGL: 115.00 unchanged RKH: 62.00 down 2.50, BOR: 62.75 down 2.50 PRE: 12.00 down 0.25 GBP: 7.13 unchanged, GPK: 419.00 unchanged, BLT 1151.00 down 39.00, RDSA: 1747.00 down 38.00, RDSB: 1705.00 down 34.00
New York Stock Exchange:
XOM: 78.22 up 1.28 (Trading in USD)
THE MARKETS (08/08/08)
FTSE100: 5,489.20 up 11.71 FTSE250: 9,201.90 up 113.18 SmallCap: 2,806.40 up 7.13
DJI: 11,734.32 up 302.89 NASDAQ: 2,414.10 up 58.37 S&P500: 1,296.31 up 30.25
US DEPARTMENT OF ENERGY ADMINISTRATION INVENTORY REPORT FOR WEEK ENDING 01/08/08
http://tonto.eia.doe.gov/oog/info/twip/twip.asp
INTERNATIONAL DEVELOPMENTS:
(Algeria and Morocco)
Speaking July 29th on the ninth anniversary of his ascension to the throne, King Mohammed VI renewed Morocco's call for open land borders with neighbouring Algeria so that new generations might "harness the potential of both Moroccan and Algerian peoples... instead of wasting them in the labyrinths of some handed-down conflict that dates back to a bygone era."
http://www.magharebia.com/cocoon/awi/xhtml1/en_GB/features/awi/reportage/2008/08/04/reportage-01
(Canada and the North Sea)
-Nexen Inc., the Calgary-based oil and natural-gas producer, closed its North Sea Scott field.
http://www.bloomberg.com/apps/news?pid=20601082&sid=a47hFy8MGmnU&refer=canada
(India)
Oil and gas share in the energy consumption basket has reached a level of about 41%. Average per capita energy consumption in India is about 358 kilogram of oil equivalent (kgoe) as against 1681 kgoe world wide indicating high energy requirement in future in order to maintain the pace of economic development in the country.
http://www.commodityonline.com/news/Augmenting-Oil--Gas-Production-11002-3-1.html
(Scotland and Norway)
Scotland is drawing up plans to build the world's longest electricity connector - to Norway - to help meet its renewable targets and end its dependence on nuclear power. The whole project could cost more than £2bn.
http://www.guardian.co.uk/business/2008/aug/10/scotland.energy
(UAE)
Abu Dhabi National Energy Co plans to invest 750 million pounds ($1.46 billion) sterling over three years to boost oil output from North Sea operations, the company's chief executive said on Thursday.
http://www.guardian.co.uk/business/feedarticle/7708106
(United States)
Republicans in Congress this June united to defeat a proposed windfall tax on oil companies, deriding it as a bad idea that would discourage investment in U.S. oil exploration
http://seattletimes.nwsource.com/html/localnews/2008103325_alaskatax07.html
REGIONAL DEVELOPMENTS:
(Bolivia)
Bolivian Minister of Hydrocarbons, Carlos Villegas, answers questions during a press conference in La Paz in June 2008.
http://www.citizen.co.za/index/Article.aspx?pDesc=1,1,22&Type=top&File=080809194158.ci8nbpws.xml
The representative of Shell Gas Latin America Jose Maria Linardi (R) and Bolivia's President Evo Morales sign the agreement accepting the nationalisation process conditions by which state-owned YPFB takes over SGLA in the government palace in La Paz.
http://www.citizen.co.za/index/article.aspx?pDesc=1,1,22&type=top&File=080809214503.l241qr9l.xml
(Brazil)
IT was a red-letter week for BG Group, which announced a “material” discovery off Brazil, where it has been drilling for oil and gas in the Santos basin.
http://business.timesonline.co.uk/tol/business/industry_sectors/natural_resources/article4493015.
ece
(Chile)
Rio de Janeiro, August 8, 2008 – PETRÓLEO BRASILEIRO S/A - PETROBRAS, [Bovespa: PETR3/PETR4, NYSE: PBR/PBRA, Latibex: XPBR/XPBRA, BCBA: APBR/APBRA], a Brazilian international energy company, announces that signed an agreement for the purchase of ExxonMobil’s stakes in Esso Chile Petrolera and in other associated Chilean companies.
http://www.yourpetrochemicalnews.com/news_item.php?newsID=8866
(Colombia)
Amerisur Resources Plc., the oil and gas explorer and developer focused on South America, said the Platanillo-2 well in Colombia is currently producing 70 barrels per day (bopd) of crude oil.
http://www.hemscott.com/news/static/tfn/item.do?newsId=66179003817398
(Ecuador)
Ecuador, OPEC's smallest member, is ready to propose paying foreign oil companies to extract oil following service-contract negotiations, Mines and Oil Minister Galo Chiriboga said.
http://www.canada.com/calgaryherald/news/calgarybusiness/story.html?id=3b229d1b-492e-407d-a793-e048835d0a82
Ecuador's oil minister says Brazil's state-run oil company Petrobras has agreed to renegotiate a 21-year drilling and exploration contract in the Andean nation
http://www.forbes.com/feeds/ap/2008/08/08/ap5305764.html
(Peru)
Several state-run companies in Peru could list shares on Lima's stock exchange early next year, the agency that oversees state companies said Friday, to take advantage of a new law allowing state firms to sell shares
http://www.forbes.com/reuters/feeds/reuters/2008/08/08/2008-08-08T202802Z_01_N08519790_RTRIDST_0_PERU-COMPANIES-SHARES.html
(Uruguay)
Uruguay's state oil company ANCAP bought Angolan Nemba crude for late-September loading in a tender from European trader Glencore.
http://africa.reuters.com/country/NG/news/usnL8123373.html
(Venezuela)
A year after the government took control of oil operations in the Orinoco Oil Belt, Venezuelan energy authorities announced a package of investments that will double daily production in the area within the next five years and rose proven deposits in the oil-rich region to 95 billion oil barrels.
http://english.eluniversal.com/2008/08/08/en_eco_art_orinoco-oil-belt-tur_08A1894281.shtml
LOCAL DEVELOPMENTS
FGML HAS A NEW NAME AND A NEW FOCUS
By J. Brock (FINN)
According to a press release from the London Stock Exchange Mr Alan Burns is leading a ‘reverse takeover’ of a company based in Jersey named BPC. To get the funding Falkland Gold and Minerals (FGML) will be issuing shares to acquire BPC, which was set up in 2007 to explore for oil and gas off the Bahamas. Mr Burns, instrumental in setting up FGML, founded BPC and the deal to set up the new company is reported to be worth £3Million. He owns 79 per cent of FGML and 53 per cent of BPC.
Mr Burns is also the founder and former chairman of Hardman Resources and a director of Renewable Energy Holdings. Investment group (RAB).
It is well known in the Falklands that FGML was unsuccessful in its hunt for worthwhile mineral deposits in the vicinity of Goose Green and on the West. As a result shares that began at 40p four years ago when the company was floated in the Alternative Investment Market (AIM) are now worth 4p today.
On the other hand, BPC has is backing an offshore exploration programme over approximately four billion acres of the Bahamas’ maritime economic exclusion zone, which are in the vicinity of identified and potentially viable acreage off the US. Those reserves could be tapped if legislation passes through the US Congress.
BPC has so far identified 22 leads large enough potentially to contain ‘commercially exploitable volumes of hydrocarbons’.
Shareholders need to approve the deal, at an extraordinary general meeting. Given that approval the new company will change its name to BPC Ltd.
FGML, had £3.6 million of assets at the end of the financial year in June and is offering six of its shares for every one of BPC’s, to bring the new company’s value to nearly £3 million.
Meanwhile BPC will seek funding if its application for five additional offshore licences there succeeds.
Providing shareholders approve the deal Mr Burns will become chairman and chief executive officer of BPC, with a board including his colleague Michael Proffitt, chief executive of Renewable Energy Holdings.
In the past, Mr Burns has agreed the sale of Hardman Resources to Tullow Oil in 2007 for £650 million
http://www.londonstockexchange.com/LSECWS/IFSPages/MarketNewsPopup.aspx?id=1924107&source=RNS
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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