Falklands : Hydrocarbons Daily Record (26/04/05)
Submitted by Falkland Islands News Network (Juanita Brock) 27.04.2006 (Article Archived on 11.05.2006)
Locally the lower crud prices won't have an affect -- yet.
HYDROCARBONS DAILY RECORD REPORT
By J. Brock (FINN)
At 1800hrs LMT on Wednesday, 26 April 2005 Light Sweet Crude was $71.93 and Brent Crude was $72.88 per barrel.
At present the trend seems to be fluctuating upwards with one or two days of decline. This is the third day of basic decline since Brent Crude exceeded $75.00 per barrel over last weekend. Rhetoric is quiet OPEC’s supplies remain steady and President Bush’s announcement about relaxing federal environmental fuel standards and diverting deliveries from reserves has helped to decrease crude oil prices but the decrease needs to follow a steady downward trend to be of any use in keeping crude prices at manageable levels.
Ideally a price of $45.00 to $55.00 per barrel would help to bring energy costs down, while still being viable enough to tempt investors to frontier areas like the Falklands.
LOCAL IMPLICATIONS:
The high cost of oil has increased prices due to businesses and Government’s desire to recover losses. This affected those on fixed incomes and the lower paid more severely, with those earning more having less disposable income than this time last year. While there will be fuel subsidies this winter, it is not yet known what they will be because the subsidy has not been agreed.
The only thing needed on the exploration side is a rig that will be suitable for the North Falkland Basin as well as one suitable for drilling in the South Falkland Basin. As yet there is no rig because oil operators want to extract as much as they can from known reserves before they focus on frontier areas like the Falklands.
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