Falklands : Hydrocarbons Weekend Record (24 to 26 August 2007)
Submitted by Falkland Islands News Network (Juanita Brock) 27.08.2007 (Article Archived on 10.09.2007)
Weekend crude prices are down slightly this weekend.
HYDROCARBONS WEEKEND RECORD: 24 TO 26 AUGUST 2007
Compiled by J. Brock (FINN)
WEEKEND ANALYSIS
Weekend crude prices are down slightly but it could be largely due to slack information and a relatively quiet time in geopolitics – for now. After the Labour Day Weekend prices should go down even further.
Throughout this summer drive season OPEC was put under pressure to increase production but in the end supply met demand and the decision taken was the right one. Hopefully the September meeting will reflect this.
WEEKEND CRUDE PRICES:
Friday, 24 August 2007 Light Sweet Crude was trading at $71.09 up 1.36 on the New York Mercantile Exchange and Brent Crude was trading at $70.62 up 76 Cents on London’s Ice Futures Market.
Sunday, 26 August 2007 Light Sweet Crude traded at $70.64 and Brent Crude traded at $70.39.
RELEVANT SHARE PRICES:
TLW: 493.255 down 1.50, DES: 28.25 up 1.25, FOGL: 129.50 down 6.50, RKH: 46.50 unchanged BOR: 27.00 down 0.25, PRE: 12.25 down 0.25, GBP: 8.00 up 0.75
WEEKEND DEVELOPMENTS:
(North Pole)
The U.S. State Department will host the Arctic Energy Summit’s Technology Conference, from Oct. 15-18 at the Egan Convention Centre in Anchorage, Alaska. Scientists and experts from Alaska, Russia, Canada, Iceland, Norway, Sweden, Denmark and Finland will discuss, debate and collaborate on energy challenges and opportunities in the Arctic. On the Agenda could be the seabed beneath the North Pole, which could be an interesting topic of debate.
(Argentina)
For the third straight weekend, the $800,000.00 suitcase takes precedence in hydrocarbons news. There is a glimmer of hope because an Argentine judge on Thursday threw out a request by Royal Dutch Shell PLC (RDSA) for a repeal of fines the Argentine government levied against the company for allegedly failing to supply the domestic market. Shell filed for the injunction on July 2nd and Judge Diego Zysman took the decision to reject it. Shell can now appeal Zysman's decision.
(Ecuador)
The Government of Ecuador has sanctioned a civil society initiative calling for the ITT oil reserve - the largest - to remain untapped. The ITT reserve is located in Yasuní National Park, one of the most bio-diverse areas in the Amazon region provinces of Pastaza and Napo. Quito has ordered oil drilling to stop at ITT for one year, and has approached several foreign governments, international bodies and non-governmental organisations with the proposal that Ecuador be paid in return for leaving the oil undisturbed, on the grounds that this would prevent environmental damages that would affect humanity.
BRIEF INVENTORY REPORT FOR THE WEEK ENDING 17 AUGUST 2007:
Crude: 337.1 million barrels up 1.9 million barrels
Gasoline: 196.2 million barrels down 5.7 million barrels
Refinery Capacity: 91.4% down 0.2%
LAST WEEK’S CRUDE PRICES:
Monday, 20 August 2007 Light Sweet Crude traded at $71.08 and Brent Crude traded at $69.79.
Tuesday, 21 August 2007 Light Sweet Crude was trading at $69.47 down $1.65 on the New York Mercantile Exchange and Brent Crude was trading at $68.69 down $1.16 on London’s Ice Futures Market.
Wednesday, 22 August 2007 Light Sweet Crude was trading at $69.26 down 31 Cents on the New York Mercantile Exchange and Brent Crude was trading at $68.70 up 1Cent on London’s Ice Futures Market.
Thursday, 23 August 2007 Light Sweet Crude was trading at $69.83 up 57 Cents on the New York Mercantile Exchange and Brent Crude was trading at $69.86 up $1.16 on London’s Ice Futures Market.
LAST WEEK’S RELEVANT SHARE PRICES:
Tuesday, 21 August 2007: TLW: 462.50 up 12.50, DES: 25.75 unchanged, FOGL: 115.50 up 2.00, RKH: 42.50 up 0.50 BOR: 27.75 unchanged, PRE: 12.50 down 0.25, GBP: 6.38 unchanged
Wednesday, 22 August 2007: TLW: 483.00 up 20.50, DES: 25.75 unchanged, FOGL: 121.50 up 6.00, RKH: 44.00 up 1.50 BOR: 26.75 down 1.00, PRE: 12.50 unchanged, GBP: 6.75 up 0.38
Thursday, 23 August 2007: TLW: 494.75 up 11.75, DES: 27.00 up 1.25, FOGL: 136 up 14.50, RKH: 46.50 up 2.50 BOR: 27.25 up 1.00, PRE: 12.50 unchanged, GBP: 7.25 up 0.50
LAST WEEK’S REGIONAL DEVELOPMENTS:
(Bolivia)
A company press release states that Franklin Mining, Bolivia S.A. would like to be able to concentrate solely on mining projects in Bolivia. This means that the parent company, Franklin Mining, Inc. has begun reviewing options for the sale of company interests in oil and gas projects. Under review are several options including the sale of Franklin Oil & Gas, Bolivia S.A. and Franklin Oil & Gas, Argentina S.A. A decision expected to be announced within a month. Each option under consideration will provide for payment of a dividend to current Franklin Mining, Inc. shareholders. Franklin Mining, Inc. holds 51% interest in each of the two oil and gas subsidiaries. Included in the sale could be a GTL facility construction contract in Tierra del Fuego, Argentina and two Bolivian projects under Memorandum of Understanding. Also a possibility is the construction and future operations of GTL facilities in the Departments of Santa Cruz and Tarija.
As reported in HDR Bolivia’s government set Aug. 20 as the deadline for energy companies to submit plans for the sale of natural gas for domestic and foreign markets, to supply Argentina aswell as other Latin American countries. Contracts of Companies that did not submit plans would be cancelled. Negotiations thus far are between Bolivia and foreign energy firms Petroleo Brasileiro, Repsol YPF, Total and BG Group over contract terms are continuing, Guillermo Aruquipa, president of Bolivian state oil company Yacimientos Petroliferos Fiscales Bolivianos (YPFB).
Guillermo Aruquipa, president of Yacimientos Petroliferos Fiscales Bolivianos (YPFB) said on Wednesday that the 12 international energy companies operating in Bolivia promised to prioritize the internal market in their investment plans, without affecting exports. In a fortnight the amounts agreed will be announced. Aruquipa told the press that PETROBRAS, Repsol-YPF, and Total, which supply 777 million cubic feet daily to Brazil, accepted the option to deliver gas Bolivia first and then export to Brazil. The current domestic demand for natural gas in the Andean nation is 229 million cubic feet per day, and according to the YPFB website, it will increase to 530 million cubic feet over a four year period.
(Venezuela)
Last week HDR reported that Venezuela wants to save money by setting up a service company for its oilfields with the aim is to make Venezuela less dependent on foreign companies for essential oilfield services. Several Latin American newspapers quoted Oil Minister Rafael Ramirez, and mentioned that he feels the proposed new company can be as good as the present services contractor, Halliburton. There are no further developments on this story but it is important and it will be monitored.
A story that won’t go away is the $800,000.00 found in a suitcase. Personally, I hope it will be used as a smokescreen for constructive talks taking place behind the scenes with a view to consolidating the hydrocarbons industry in South America so that profits will benefit South Americans.
(Venezuela and the United Kingdom)
The Government of Venezuela has helped poor people not only in their own country but also in the United States and now London in England. An energy cooperation agreement, signed by the City Hall of London and the government of Venezuela on 20 February, aimed at favouring the poor citizens of the English capital city, will affect about a million people. London’s mayor, Ken Livingstone, and the Venezuelan Foreign Affairs Minister, Nicolás Maduro, agreed that the Venezuelan state oil Company(Pdvsa) will provide a 20% reduction in the price of combustible for London’s bus network. In New York, CITGO supplied poor people with a reduced cost heating fuel during the winter.
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