Falklands : Hydrocarbons Daily Record Monday, 25 August 2008
Submitted by Falkland Islands News Network (Juanita Brock) 26.08.2008 (Article Archived on 09.09.2008)
Crude prices increased today due to a weakening US Dollar and storms in the North Atlantic. Keep in mind that the North Atlantic includes all ocean located above the equator and not as some think, above the 40s that roar.
HYDROCARBONS DAILY RECORD MONDAY, 25 AUGUST 2008
By J. Brock (FINN)
At 1930hrs LMT on Monday, 25 August 2008 Light Sweet Crude was trading at $115.11 up 52 Cents on the New York Mercantile Exchange. Brent Crude was trading at $114.18 up 26 Cents on London’s ICE Futures Market.
ANALYSIS:
Crude prices increased today due to a weakening US Dollar and storms in the North Atlantic. Keep in mind that the North Atlantic includes all ocean located above the equator and not as some think, above the 40s that roar.
These storms have not yet entered the Gulf of Mexico where the oil infrastructure is located and to speculate with increasing crude prices will is a misnomer. We can always wait and see before hitting the panic button.
The US awaits a huge drive weak end over the Labour Day holiday. However, with pump prices at extortionate levels people may opt to spend time at home. Inventory reports for the week ending 29 August and/or 06 September will be a good indicator about demand and how high prices at the pump are changing our lifestyles.
Hopefully the changes will mean more fuel efficient vehicles using cost-effective alternative fuels.
Geopolitics as ever will be a factor in crude prices and the unrest in Georgia is no exception, with oil pipelines and a regional oil industry there has been concerns about a disruption of supplies. This has eased with a Russian pull-out of the country on-going.
RELATED ARTICLES:
(Hurricane Season)
NOAA warns of a 65 percent probability of an above normal 2008 hurricane season and a 25 percent probability of a near normal season.
http://www.halflifesource.com/topnews/national_hurricane_center_predicts_above_normal_hurricane_season/article2439.html
(Alternative Fuels)
Americans burned through more than 142 billion gallons of gasoline last year—some 16 million gallons an hour. It's an expensive habit at over $4 (and over 20 pounds of CO2 emissions) a pop. No wonder the market has never looked better for alternatives.
http://www.popularmechanics.com/science/research/4279508.html
(Geo-Politics)
As Russian tanks and infantry roll through distant, democratic Georgia, a less provocative yet troubling assault on democracy in the Western Hemisphere continues unabated.
http://www.latinbusinesschronicle.com/app/article.aspx?id=2690
SHARE PRICES ON THE ALTERNATIVE INVESTMENT MARKET: Friday, 22 August 2008 and Monday, 25 August 2008.
TLW: 796.50 down 3.00, DES: 82.00 up 0.75, FOGL: 125.00 down 0.25 RKH: 66.00 unchanged, BOR: 62.50 up 0.50 PRE: 11.50 down 0.25 GBP: 7.13 unchanged GPK: 419.00 unchanged, BLT 1698.00 up 28.00, RDSA: 1890.00 up 40.00, RDSB: 1862.00 up 42.00
New York Stock Exchange:
XOM: 78.81 down 1.49 (Trading in USD)
THE MARKETS (22 and 25/08/08)
FTSE100: 5,505.60 up 135.41 FTSE250: 9,182.70 up 243.61 SmallCap: 2,800.00 up 25.68
Note: The London Stock Exchange was closed today. The prices listed are Friday’s prices.
DJI: 11,386.25 down 241.81 NASDAQ: 2,365.59 down 49.12 S&P500: 1,266.84 down 25.36
US DEPARTMENT OF ENERGY ADMINISTRATION INVENTORY REPORT FOR WEEK ENDING 15/08/08
http://tonto.eia.doe.gov/oog/info/twip/twip.asp
INTERNATIONAL DEVELOPMENTS:
(Norway and India)
Norsk Hydro of Norway is keen to take 30 per cent stake in Oil and Natural Gas Corp's (ONGC) gas discovery block in Krishna Godavari basin, but the state-run firm is willing to give only 22-24 per cent stake.
http://www.business-standard.com/india/storypage.php?tp=on&autono=45248
(North Sea)
The presence of a considerable oil column has been confirmed under the Dagny structure in the North Sea. Gas has been proven in the deep-water Snefrid South prospect near the Luva discovery in the Norwegian Sea.
http://www.oilandgaseurasia.com/news/p/0/news/2655
The presence of a considerable oil column has been confirmed under the Dagny structure in the North Sea. Gas has been proven in the deep-water Snefrid South prospect near the Luva discovery in the Norwegian Sea.
http://www.euro-petrole.com/ne_03_actualite_i_details.php?idNews=2602
REGIONAL DEVELOPMENTS:
(Brazil)
Brazil plans to increase its petroleum refining capacity by building five new refineries, the head of the state-owned oil consortium Petrobras said Friday.
http://www.petroleumworld.com/story08082517.htm
Petroleo Brasileiro SA, Brazil's state-controlled oil company, is expanding exploration for offshore oil beyond its Tupi and Carioca fields, the Gazeta Mercantil newspaper reported.
http://www.bloomberg.com/apps/news?pid=20601086&sid=aoAzAhjDBYDk&refer=news
(Ecuador)
Luis Jaramillo, president of Ecuador's Petroecuador, said Ivanhoe Energy Inc., Vancouver, BC, would begin work within 9 months towards the production of heavy crude oil from Pungarayacu heavy oil field on Block 20 in Ecuador's Oriente basin, according to El Comercio newspaper.
http://www.ogj.com/display_article/337684/7/ONART/none/ExplD/1/Petroecuador-seeks-to-develop-Block-20-heavy-oil/
(Venezuela)
Venezuelan President Hugo Chavez is expected to sign a bilateral energy agreement with South Africa next week paving the way for state-owned oil company PetroSA to acquire an oil-producing asset in Venezuela.
http://africa.reuters.com/business/news/usnBAN553069.html
Swift Energy, PTTEP and Woodside have announced their decision to join the PetroSkills technical training alliance for the oil and gas industry.
http://www.oilvoice.com/post/Company_News_Release/Swift_Energy_PTTEP_and_Woodside_Join_PetroSkills_Alliance/398688c832.aspx
LOCAL DEVELOPMENTS:
MINERAL RESOURCES COMMITTEE MEETING MONDAY, 25 AUGUST 2008
Compiled by J. Brock (FINN)
A meeting of the Mineral Resources Committee took place at 1330hrs on Monday, 25 August 2008. Cllr Robertson Chaired the Committee and others present were Cllr Summers, the Chief Executive Mr Tim Thorogood, the Attorney General Mr David Pickup, the Director of Agriculture and Minerals, Mrs Phyllis Rendell, Mrs Pippa Christie and Mrs Katrina Stephenson. Apologies were submitted by Cllr Birmingham and Cllr Hansen. The minutes of the meeting held on 09 May 2008 were confirmed and there was one matter arising from those minutes in that Phyl Rendell and Dr Phil Richards of BGS will be attending the American Association of Petroleum Geologists meeting in Cape Town South Africa at the end of October. Licensees Rockhopper Exploration and Borders and Southern could also attend.
Mrs Phyl Rendell gave the following report:
Offshore Production Licence Award
Desire Petroleum has been awarded an offshore production licence for an area adjacent to their current licences. Arcadia Petroleum Limited (APL) is a partner in the licence. This is the first production licence to be awarded since open door licensing was closed in 2005. It is hoped that there will be increased interest in the Falkland Islands from companies with sufficient funds to drill wells. APL also received approval to farm-in to three other licences operated by Desire Petroleum in order to have an interest in additional potential oil reserves that are ready for drilling.
Licensee Meetings
The next Joint Operators’ Meeting to be held in the Islands is scheduled for the first week of May 2009. All the licensees have agreed to be represented in the Islands for meetings with FIG and other interest groups that week. Representatives from the Health and Safety Executive, FIG’s consultants on offshore exploration, have been invited to attend to discuss safety case matters related to suitable rigs for a drilling programme and to hold meetings with FIG departments with an interest in health and safety.
Licensees meet regularly in the UK to discuss matters of mutual interest in order to progress their work programmes.
Environmental Surveys
In preparation for drilling, companies are preparing to carry out environmental surveys. Desire Petroleum and Rockhopper Exploration have approvals in place to conduct benthic surveys over potential well sites. This work involves systematically collecting seabed samples over sites that may be drilled in order to monitor the marine status of the area before any activity and then to monitor any change as a result of drilling.
Licensees with acreage in the South Falkland Basin also have plans to conduct pre-drilling surveys this summer over potential well locations.
Interpretation of new Seismic Data
Rockhopper Exploration continue to work on their 3D seismic data set and Borders and Southern Petroleum has now received its processed data. These data have been supplied to BGS and are being analysed by them for the Falkland Islands Government. Both data sets BGS report, are of high quality.
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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