Falklands : Hydrocarbons Weekend Record (29/30July 2006)
Submitted by Falkland Islands News Network (Juanita Brock) 31.07.2006 (Article Archived on 14.08.2006)
Geopolitics are making crude prices fluctuate higher despite factors that should bring the price down.
HYDROCARBONS WEEKEND RECORD 29 AND 30 JULY 2006
By J. Brock (FINN)
TRENDS:
Geopolitics tends to be the dominating factor in the scheme of things this weekend with Israel retaliating double for every Hezbullah rocket lobbed across the border. HOWEVER, ON Sunday, due to heavy diplomatic pressure from the US Secretary of State, Israel suspended air strikes for 48 hours. Diplomatic efforts will continue in the mid east at the highest level despite accelerated fighting. True to form the US is pointing the finger at Iran and Syria for supplying the terrorist organisation that has taken over much of Lebanon. Some analysts are saying that it is the profits made by war that makes the conflict grow bigger. I hope this is not the case but I remember the word, “petropolitics” and realise it has an affect on the situation in the mid east.
Continuing high demand for hydrocarbons products in China as well as the United States caused some nervousness amongst investors this weekend as well as reports of high summer energy demands and for gasoline consumption in the United States. However, the hurricane season that began on 01 June has not proved to be a threat – yet. Infrastructure in the Gulf of Mexico is safe for the time being.
The purchase of fuel for precautionary inventories can, if not managed well, drive crude prices higher. When there are supply worries fuel can be bought in at a higher price instead of waiting for a lower price.
DEVELOPING FACTORS:
(New Zealand)
Now that technology has improved, New Zealand is inviting Royal Dutch Shell Plc, Exxon Mobil Corp. and other natural gas producers to explore one of the most inhospitable seas on Earth. New Zealand plan to seek bids to explore for hydrocarbons in the Great South Basin, off the nation's southern coast. The area was last explored during the 1970s, when drillers found the cost of battling 15-meter (50-foot) waves too high for exploiting the area's gas fields.
LATIN AMERICA:
(Ecuador)
The new law giving 50% of the hydrocarbons revenue to Ecuador’s Government and ultimately the people needs to face legal challenges before any increased revenue is received.
(Bolivia)
New contractual arrangements for the nationalisation of Bolivian hydrocarbons are being scrutinised in courts with contracting countries. Despite this the Bolivian government will start aggressively nationalising hydrocarbons enterprises to verify the value of their business profits as well as assets. This is to aid in detecting tax evasion and other business irregularities. Bolivian Hydrocarbons Minister Andres Soliz said the nationalisation process for international hydrocarbons companies would be crucial in the signing of new contracts with those companies and upholding legal requirements. The National Tax Service estimated that hydrocarbons companies owe more than 146 million dollars due to tax evasion. The first inspections will be in the department of Tarija, and the process will cost 5.2 million dollars.
(Falkland Islands)
Compared to New Zealand, the waters around the Falklands, while not a duck pond, are not as volatile. There are plenty of hydrocarbons here.
Falklands Oil Stocks End of Day Price for the 28.7.06
Desire Petroleum up 0.75 points or i.82% on the day to stand at 42.00p
Falklands Oil and Gas was up .50 points or 0.47% on the day to stand at .107.00p
Rockhopper Exploration was down 0.50 or – 1.23% on the day to stand at 40.00p
Border and Southern was down 0.50 points or 1.05% on the day to stand at 47.00p
|
