Falklands : Hydrocarbons Weekend Record (24/25 June 2006)
Submitted by Falkland Islands News Network (Juanita Brock) 26.06.2006 (Article Archived on 10.07.2006)
No significant indicators have sharply lowered or raised oil prices over the weekend.
HYDROCARBONS Weekend RECORD: 24/25 JUNE 2006
By J. Brock (FINN)
TRENDS:
There are still no significant indicators that would sharply reduce or increase the price of oil per barrel. Keeping prices from rising sharply, research into and use of alternative fuels, the supply of gasoline in the United States and the calm (ish) weather in the Gulf of Mexico. An exceptionately peaceful atmosphere in places where oil is produced would help to decrease the price significantly. Another indicator would be fiercer competition with alternative fuels. Gasoline supplies could be a worry if too many people take to the road in the US during the summer vacation period.
DEVELOPING FACTORS:
ASIA
A seismic survey of the river, Brahmaputra in Assam will be undertaken by oil exploration major Oil India Ltd (OIL). It is hoped the presence of hydrocarbons will be found. The survey begins in November this year for two seasons to ascertain whether oil or gas is present under the river-bed. As per reports, there are hydrocarbons under the Brahmaputra suggesting that there may be gas there in a very large quantity.
EUROPE
BP (BP) was up £0.17 to £6.22. Deutsche Bank lifted its target to £8.00 following a hike in oil price forecasts. It expects Brent to be US$44/bbl from 2010 (was US$38/bbl from 2009).
EUROPE/SOUTH and NORTH AMERICA
ROYAL DUTCH SHELL (RDS) was up 0.30 to 25.45. Deutsche Bank upped the company to buy from hold and raised its target to £21.00 from £20.00, on revised deck prices. North Sea oil and gas unions called for a government investigation into the company's North Sea safety record after revelations that an internal audit found widespread violations of safety procedures and the alleged falsification of compliance documents.
(Bolivia)
According to President, Evo Morales, “Bolivia will stop being a "beggar’s state" with the income the nationalisation of its hydrocarbons will generate and also with the renewed natural gas prices Bolivia negotiates with Argentina an Brazil,” President Morales, leader of the “Movement for Socialism” (MAS), expressed his “beggar’s state” line with confidence at the time his government turns five months old in an act in Yacuiba (border with Argentina), attended by the Argentine Health minister, Ginés González Garcia; and that country’s ambassador, Horacio Macedo. When inaugurating the extension of a hospital equipped with Cuban aid, Morales said the oil nationalisation on the first of May, has allowed his country to recover the right to commercialise natural gas freely, as it does at the moment with Argentina and Brazil.
(United States)
In the U. S. State of Alaska, AOGCC is to evaluate development options at Exxon-operated North Slope field In September. The state agency charged with protecting the public’s interest in hydrocarbon recovery in Alaska will begin evaluating Exxon’s proposed plan to develop the 106,200-acre Point Thomson unit as a gas field rather than as an oil field.
(Falkland Islands)
When the markets closed on Friday:
Desire Petroleum up 0.25p or 0.8% on the day to stand at 33p
Falklands Oil and Gas unchanged on the day to stand at £112.50.p
Rockhopper Exploration unchanged on the day to stand at 24p
Border and Southern up 0.50p or 1.1% on the day to stand at 44p
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