Falklands : Hydrocarbons Daily Record Wednesday, 26 March 2008
Submitted by Falkland Islands News Network (Juanita Brock) 27.03.2008 (Article Archived on 10.04.2008)

Today’s sharp rise in crude prices is due to a larger than expected decline in gasoline and distillate inventories according to the US Department of Energy Administration.

HYDROCARBONS DAILY RECORD WEDNESDAY, 26 MARCH 2008

By J. Brock (FINN)

At 1900hrs LMT on Wednesday, 26 March 2008 Light Sweet Crude was trading at 105.80 up $4.58 on the New York Mercantile Exchange.  Brent Crude was trading at $103.99 up $3.39 on London’s ICE Futures Market.

ANALYSIS:

Today’s sharp rise in crude prices is due to a larger than expected decline in gasoline and distillate inventories according to the US Department of Energy Administration.

Another aspect of trying to seek alternatives can actually hurt rather than help.  Reports are coming in that food costs are rising due to farmland in the US and even in Indonesia being used to produce crops destined for alternative energy.  HDR would rather see people try hydrogen, natural gas or battery powered vehicles than those running on ethanol.

(Related Stories)

Some analysts are predicting the cost of fuel will far exceed even that price in the coming months.  The Consumer Federation of America said an unusual set of circumstances is pushing fuel prices upward.   The oil industry is seeing declining demand, record stocks and increased refining capacity--factors that normally reduce gas

http://www.nbc4.com/traffic/15714987/detail.html

(Alternative fuels)

In 2007, 1,731 hybrid cars were purchased in Israel, compared to 493 in 2006, 130 in 2005 and only 10 in 2004. In the first two months of 2008, 506 hybrid cars were purchased.

http://www.environment.gov.il/bin/en.jsp?enPage=e_BlankPage&enDisplay=view&enDispWhat=Object&enDispWho=News^l4005&enZone=e_news

SHARE PRICES AND THE MARKETS:

SHARE PRICES ON THE ALTERNATIVE INVESTMENT MARKET:  Wednesday 26 March 2008.

TLW: 657.50 up 9.00, DES:  72.50 up 2.00, FOGL: 124.00 down o.50 RKH:  79.50 up 2.00, BOR: 62.50 up 5.00 PRE:  12.00 unchanged, GBP: 7.50 unchanged GPK: 389.00 up 1.00, BLT 1450.00 up 20.00 RDSA: 1703.00 up 20.00 RDSB: 1598.00 down 59.00

New York Stock Exchange:

XOM:  86.26 up 1.06 (USD)

THE MARKETS (26/03/08)

FTSE100: 5,660.40 down 28.67, FTSE250: 9,756.10 down 38.53 SmallCap: 3,0004.90 up 8.99

DJI: 12,442.86 down 109.74 NASDAQ: 2,324.36 down 16.69 S&P500: 1,341.13 down 11.86

INTERNATIONAL DEVELOPMENTS

(Mexico)

Mexican state-owned oil monopoly Pemex said on Wednesday it expected to lift its oil and gas reserves replacement rate to the industry ideal of 100 percent in 2012.

http://www.reuters.com/article/marketsNews/idUSN2643196220080326

(Spain)

Spain's Compania Espanola de Petroleos SA (CEPSA) has purchased exploration and production rights for the Caracara block in Los Llanos, Colombia, from local firm Hupecol Caracara LLC for an undisclosed sum.

The block, which produces more than 20,000 b/d, holds 40 million bbl of oil in an area covering 47,200 hectares, Cepsa said.

http://www.pennenergy.com/display_article/323966/7/PRARC/none/GenIn/1/CEPSA-buys-E&P-rights-to-Colombia's-Caracara-block/

REGIONAL DEVELOPMENTS:

(Latin America General)

The presidents of Venezuela and Brazil, Hugo Chavez and Luiz Inacio Lula da Silva, flew to this northern Brazilian city Wednesday to discuss energy cooperation and the creation of a regional defence council.

http://afp.google.com/article/ALeqM5iEJgA8cm_QG1alknZHu6q8qGDNqQ

The leaders of Venezuela and Brazil are considering the idea of creating a Latin American version of NATO, following Colombia's killing of a rebel in Ecuador that rattled the continent this month.

http://www.caribbeannetnews.com/news-6820--12-12--.html

(Peru)

Peru's state oil company Petroperú has launched an international prequalification call for the FEED-EPC tender for the US$1bn Talara refinery modernization project.

http://www.bnamericas.com/story.jsp?idioma=I&sector=9&noticia=428194

(Uruguay)

Vailly SA, a Uruguayan company that made 441,450 reais ($318,000) trading Suzano Petroquimica SA over seven days last year, was fined in the first insider-trading penalty imposed jointly by Brazil's security regulator and federal prosecutor. Vailly bought Suzano Petroquimica SA preferred shares on July 27 and then sold them Aug. 3 after the petrochemical company announced it would be acquired, the regulator known as CVM said on its Web site. The company agreed to the 2.2 million reias fine, ending the joint probe, CVM said. Vailly didn't return a call placed to its Montevideo office seeking comment.

http://www.bloomberg.com/apps/news?pid=20601086&sid=ab5.aPCRCeS4&refer=news

(Venezuela)

Venezuela is prepared to provide billions of dollars to help build a Brazilian refinery that will process Venezuelan crude when it starts operating in 2010, Venezuelan President Hugo Chavez said Wednesday.

http://www.chron.com/disp/story.mpl/ap/fn/5651040.html

LOCAL DEVELOPMENTS:

Speculation is ripe that Oil Company representatives will be visiting the Falklands in May to discuss logistics for the up and coming drilling round.  Nothing is firm but HDR will keep an ear to the ground.

LOCAL LINKS:

http://www.fogl.com

http://www.desireplc.co.uk

http://www.bordersandsouthern.com

http://www.rockhopperexploration.co.uk.

This article is the Property and Copyright of Falkland Islands News Network.