Falklands : Hydrocarbons Daily Record Wednesday, 01 October 2008
Submitted by Falkland Islands News Network (Juanita Brock) 02.10.2008 (Article Archived on 16.10.2008)
You don’t recover the economy by using the same method that got you in the mess in the first place – that’s crazy.
HYDROCARBONS DAILY RECORD WEDNESDAY, 01 OCTOBER 2008
By J. Brock (FINN)
At 1930hrs LMT on Wednesday, 01 October 2008 Light Sweet Crude was trading at $98.53 down $2.11 on the New York Mercantile Exchange. Brent Crude was trading at $95.33 down $2.84 on London’s ICE Futures Market.
ANALYSIS:
NEW CREDIT CRUNCH VICTIMS URGED TO WAKE UP AND SMELL THE COLD COFFEE
An Editorial by J. Brock (FINN)
The credit crunch we now experience was built on dreams and instant gratification – you can have that “home” you can drive away in that car right now! And the banker that negotiated the loans and convinced people to borrow was the flim-flam man. As things turned out those loans were disasters ready to happen as many people who hadn’t a hope of paying the bank back were granted dreams that very quickly turned sour.
Collaboration between traders and speculators helped to fuel – pardon the pun – the whole crisis and first to fall victim were people who fed their families instead of paying the mortgage. Others who could barely pay the bank back also ran into difficulties when rising crude, hydrocarbons product costs, food and every day expenses became too much for limited incomes. And they, too, began to falter on their loans.
To cover losses lending organisations increased interests, also generated new cash by selling more mortgages to people who couldn’t afford them – sound familiar? Selling people instant gratification when they really needed a good dose of reality has turned the American Dream into a nightmare.
The domino affect continued with people who were “comfortable” now struggling for cash to feed the ever voracious banking black hole. We have woken up to smell the cold coffee – it’s cold because it’s too expensive to heat the water.
Yes, in 2006 and in 2007 there was pain at the pump and people simply filled their SUVs and got on with it. Currently people are downsizing and using less hydrocarbons products, demand has decreased but the savings people realised have been eaten up by collaboration between traders and speculators jacking up crude prices and ultimately gasoline and heating fuel prices.
Banks that went bust lent money unwisely (rogue lending) and the practice backfired - big time. Nick Leeson of Barings Bank went to prison for six years for rogue trading and yet rogue lenders got golden handshakes. You don’t recover the economy by using the same method that got you in the mess in the first place – that’s crazy.
The credit industry needs to be re-built and used as it was first intended. It makes no sense to accumulate debts that you can’t pay back. But I feel the person doing the lending shares more of the blame than those who “borrowed” bank funds. People are doing now what they should have done then – think before you buy or borrow.
We steel ourselves against e-mail fraud - where we are offered millions - because we know there is no such thing as a free ride. Now we should be wary loans that seem too good to be true. It’s up to the community to look after their money and if needed, be wise borrowers.
SHARE PRICES ON THE ALTERNATIVE INVESTMENT MARKET: Wednesday, 01 October 2008
TLW: 711.00 down 2.00, DES: 57.50 down 2.50, FOGL: 91.00 down 3.50 RKH: 48.50 up 2.00 BOR: 33.75 up 1.75, BPC: 4.38 unchanged PRE: 10.50 down 0.25 GBP: 5.88 unchanged, GPK: 370.00 unchanged, BLT 1209.00 down 5.00, RDSA: 1630.00 up 12.00, RDSB: 1578.00 unchanged
New York Stock Exchange:
XOM: 78.66 up 1.00 (Trading in USD)
THE MARKETS (01/10/08)
FTSE100: 4,959.59 down 26.18 FTSE250: 7,914.39 up 26.18 SmallCap: 2,459.02 up 31.98
DJI: 10,831.07 down 19.59 NASDAQ: 2,069.40 down 22.48, S&P500: 1,161.06 down 5.30
US DEPARTMENT OF ENERGY ADMINISTRATION INVENTORY REPORT FOR WEEK ENDING 26/09/08.
http://tonto.eia.doe.gov/oog/info/twip/twip.asp
INTERNATIONAL DEVELOPMENTS:
(North Sea Oil)
The fourth new North Sea field to be brought onstream by Shell U.K. Limited this year - Curlew C - has achieved production start-up. The Curlew C development marks the first time that Shell has produced hydrocarbons from a chalk formation in the North Sea.
http://subseaworld.com/projects/curlew-c-is-the-fourth-new-north-sea-field-to-be-brought-onstream-by-shell-this-year-02436.html
REGIONAL DEVELOPMENTS:
(Brazil)
Foreign companies discovered oil below a salt layer underneath the Brazilian seas, in the so-called Campos Basin offshore, near the coast of Espirito Santo, Globo On Line reported Wednesday.
http://www.plenglish.com/article.asp?ID=%7BE6E0476E-CDE9-4430-874F-7F93ECEC4643%7D)&language=EN
Anadarko Petroleum Corp have struck light oil in Brazil's offshore subsalt band with partners Devon Energy Corp.
http://english.neftegaz.ru/lenta/show/83202/
(Brazil and Venezuela)
Brazilian President Luiz Inacio Lula da Silva and his Venezuelan counterpart Hugo Chavez inked seven agreements on Tuesday in a bid to step up bilateral cooperation.
http://news.xinhuanet.com/english/2008-10/01/content_10137917.htm
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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