Falklands : Hydrocarbons Daily Record Wednesday, 21 May 2008
Submitted by Falkland Islands News Network (Juanita Brock) 22.05.2008 (Article Archived on 05.06.2008)
Crude prices increased sharply today due to a decrease in supplies reported by the US Department of Energy Administration weekly inventory report for the week ending 16 May 2008.
HYDROCARBONS DAILY RECORD WEDNESDAY, 21 MAY 2008
By J. Brock (FINN)
At 1930hrs LMT on Wednesday, 21 May 2008 Light Sweet Crude was trading at $133.17 up $4.19 on the New York Mercantile Exchange. Brent Crude was trading at $132.70 up $4.86 on London’s ICE Futures Market.
ANALYSIS:
Crude prices increased sharply today due to a decrease in supplies reported by the US Department of Energy Administration weekly inventory report for the week ending 16 May 2008. (Use link below.) Too many “analysts” interviewed on TV are helping to fuel the “Chicken Little” affect and people buying crude and crude futures are believing them.
As HDR pointed out yesterday, there are no service stations running out of gasoline but many are going out of business because the products from criminally high - cost crude make it impossible for them to turn a profit on hydrocarbons products. For over a third of a century the “Mom and Pop” gas station with a coke machine has become a thing of the past because simply selling hydrocarbons products and repairing vehicles has become unprofitable. Convenience stores and restaurants are but a few things gas station owners have had to diversify into to make a profit.
Times when gas stations run low occur mainly when haulers bringing fuel to them go on strike. In addition, if a station has no fuel, you will find that the business could not afford to buy in the product at the prices requested by the supplier.
More forward thinking service stations are thinking about selling alternative fuels like hydrogen. Once this business takes hold and people start buying hydrogen-powered vehicles, crude prices will fall – sharply.
RELATED ARTICLES:
(OPEC)
OPEC Secy. Gen. Abdalla Salem El-Badri, on a week long working visit to Latin American OPEC member countries Venezuela and Ecuador, said the crude oil market remains well supplied, with OECD stocks increasing above their 5-year average, but he expressed concern about the market's recent volatility, noting that non-fundamentals are now the major drivers of the market.
http://www.ogj.com/display_article/329414/7/ONART/none/GenIn/1/OPEC-seeks-cooperation-in-curbing-market-volatility/
Light, sweet crude for July delivery rose $4.19 to settle at $133.17 a barrel on the New York Mercantile Exchange, but prices rose as high as $133.93 in after-hours electronic trading. It was crude's largest one-day price advance since March 26.
http://ap.google.com/article/ALeqM5i5TtajgUpSm7KY5jf-lCJGHBB-tAD90Q8EGG0
SHARE PRICES ON THE ALTERNATIVE INVESTMENT MARKET: Wednesday, 21 May 2008.
TLW: 969.00 up 35.00, DES: 94.00 up 1.00, FOGL: 164.50 unchanged RKH: 106.00 up 4.50, BOR: 107.50 up 6.00 PRE: 13.75 down 0.25, GBP: 9.38 unchanged, GPK: 429.00 unchanged, BLT 2066.00 up 43.00, RDSA: 2242.00 up 101.00 RDSB: 2212.00 up 100.00
New York Stock Exchange:
XOM: 93.67 down 0.89 (USD)
THE MARKETS (21/05/08)
FTSE100: 6,198.10 up 6.49, FTSE250: 10, 165.80 down 84.51 SmallCap: 3,198.60 down 11.51
DJI: 12,601.18 down 227.49 NASDAQ: 2,448.27 down 43.99 S&P500: 1,390.71 down 22.69
US DEPARTMENT OF ENERGY ADMINISTRATION INVENTORY REPORT FOR WEEK ENDING 16/05/08
http://tonto.eia.doe.gov/oog/info/twip/twip.asp
INTERNATIONAL DEVELOPMENTS:
(Canada)
Researched by Industrial Info Resources(Sugar Land, Texas) -- Construction is progressing on Canaport LNG's $750 million liquefied natural gas import terminal in St. John, New Brunswick. Canaport LNG, a limited partnership between Irving Oil Limited (St. John, New Brunswick) (25%) and Repsol YPF S.A. (NYSE:REP) (Madrid, Spain) (75%). Canaport LNG will be the first LNG re-gasification plant in Canada that will send out natural gas to both Canadian and U.S. markets.
http://www.marketwire.com/mw/release.do?id=859200
(Norway)
StatoilHydro struck gas in the Jurassic sandstone of the Galtvort prospect in the Norwegian Sea. The size of the discovery has not yet been determined, but a sidetrack well will be drilled right after the current well has been completed.
http://www.energycurrent.com/index.php?id=2&storyid=10669
(Oman)
Oilex Ltd. said the Alyanbou-1 well in Oman was plugged and abandoned at a depth of 1,199 metres without encountering hydrocarbon indications.
http://www.forbes.com/markets/feeds/afx/2008/05/20/afx5028039.html
(Saudi Arabia)
The Saudi Section of the Society of Petroleum Engineers (SPE) held its annual Technical Symposium on 10-12 May, titled 'The Ultimate Challenge: Unlocking Hydrocarbons through Optimum Exploitation Strategy'.
http://www.bi-me.com/main.php?id=20485&t=1&c=33&cg=4&mset=
REGIONAL DEVELOPMENTS:
(Bolivia)
President Evo Morales is intent upon gathering unchallenged and unending power to impose "21st Century Bolivarian Socialism" in Bolivia. Although pro-democracy, free-market forces appear to have scored a significant victory in a May 4 referendum about control of the country's mineral-rich and economically more successful eastern lowlands, Morales and his followers will surely not give up their quest to subjugate the industrious and independent-minded Department of Santa Cruz.
http://www.heritage.org/Research/LatinAmerica/wm1929.cfm
"If in a given time they do not invest we are going to recover those areas so YPFB can invest in them, even if it has to be through debt," state news agency ABI quoted Morales as saying. "We need partners and not owners of our natural resources," the head of state said.
http://www.bnamericas.com/story.jsp?idioma=I§or=9¬icia=435154
(Brazil)
Brazilian energy major Petrobras has announced its intention to hire 40 drilling ships and semi-submersible drilling platforms, to operate in deep and ultra-deep waters, by 2017.
http://www.redorbit.com/news/business/1396370/petrobras_outlines_major_drilling_rig_sourcing_plan/
(Ecuador)
While this destruction was mainly committed by foreign oil companies like Conoco and Texaco, the national oil company Petroecuador was a partner in this and ...
http://www.countercurrents.org/salzman210508.htm
(Peru)
21 May 2008 - Braskem, Petrobras and PetroPeru signed an agreement aimed at assessing the technical and economic feasibility to implement an integrated project for the production of 700 thousand to 1.2 million tons of polyethylene from competitive natural gas available in Peru.
http://www.chemie.de/news/e/82355/
The following stocks may have significant gains or losses in Latin American markets. Symbols are in parentheses after company names, and stock prices are from the last session.
http://www.bloomberg.com/apps/news?pid=20601086&sid=aOEuJSnaIerQ&refer=latin_america
(Venezuela)
Venezuela's cheap gasoline makes it easy for motorcycle driver Henry Rueda to earn his keep by zipping passengers around this border city, which is just minutes away from neighboring Colombia.
http://www.guardian.co.uk/business/feedarticle/7531404
LOCAL DEVELOPMENTS:
HOLDING IN COMPANY
http://www.londonstockexchange.com/LSECWS/IFSPages/MarketNewsPopup.aspx?id=1847390&source=RNS
Borders & Southern Petroleum advanced 3-3/4 pence more to 105-1/4 as traders continued to warm to Tuesday's initiation of coverage of the stock by Panmure Gordon with a 'buy' rating and 151 pence target price.
http://www.iii.co.uk/news/?type=afxnews&articleid=6722155&subject=markets&action=article
"High oil prices and a decreasing number of global exploration opportunities have led to growing industry interest in the Falkland Islands," Panmure said, ...
http://www.independent.co.uk/news/business/sharewatch/market-report-miners-slide-as-broker-issues-call-for-a-correction-831533.html
LOCAL LINKS:
http://www.fogl.com
http://www.desireplc.co.uk
http://www.bordersandsouthern.com
http://www.rockhopperexploration.co.uk.
DISCLAIMER:
The sources for related articles come from a variety of websites so that readers can get as wide a selection of views as possible. HDR does not necessarily align itself with any of the views expressed
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