Falklands : Hydrocarbons Daily Record (07/02/07)
Submitted by Falkland Islands News Network (Juanita Brock) 08.02.2007 (Article Archived on 22.02.2007)
Profit taking caused the price of crude to decline today.
HYDROCARBONS DAILY RECORD: WEDNESDAY, 07 FEBRUARY 2007
By J. Brock (FINN)
At 1800 LMT on Wednesday, 07 February 2007 Light Sweet Crude fell $1.17 Cents to settle at $57.71 on the New York Mercantile Exchange and Brent Crude decreased by $1.15 Cents to settle at $57.23 on London’s ICE Futures Market.
Crude prices declined today regardless of a minor reduction in supplies. The cold snap in the United States seems to be continuing and putting demand on heating oil. Profit taking also figures into why crude prices dropped today.
FTSE 100 closed at 6,369.50 up +23.24
FTSE 250 closed at 11,502.00 up +22.59
FTSE Small Cap closed at 4,030.70 up +10.67
DJI closed at 12,666.31 up +4.57
NASDAQ closed at 2,490.50 up +19.01
S&P500 closed at 1,450.02 up +2.02
The Indian Government on Tuesday revoked the appointment of R S Sharma as the Chairman and Managing Director of that country’s Oil and Natural Gas Corporation (ONGC). Approximately a dozen candidates including V K Sibal, the upstream oil regulator, were short listed for the job at ONGC. Sibal, the Director General of Directorate General of Hydrocarbons topped the list of contenders including R S Sharma, presently the Company’s Acting Chairman and Managing Director. Sharma, has been acting as the CMD of ONGC since May 2006, when the Indian Government decided not to extend the term of Subir Raha. The top candidate was selected for the top job by the Public Enterprise Selection Board on August 30, 2006.
The Sakhalin-2 integrated oil and gas project, the world’s largest, is operated by the Sakhalin Energy Investment Co., with Shell being one of its shareholders as well as technical adviser to the project. The project has a budget of $20 billion and represents the largest foreign investment in the Russia’s history. Once the project recovers its costs, Russia will benefit from royalties, hydrocarbons profits as well as taxes, expected tol rise to around $2 billion per year for an undetermined number of years..
On Monday Bolivia’s government began developing a new hydrocarbons industry sector strategy including necessary reforms as well as participation of Norwegian, Dutch, and Canadian technical staff. When the industry was nationalised in May 2006 work began on the strategy. Forty-four agreements with foreign companies operating in Bolivia have been signed thus far. The program helped to revamp Bolivia’s state run Oil Company (YFPB) as well as instituting an intensive industrialisation process in the hydrocarbons sector. Today the plans are being analyzed in an international conference that will announce its conclusions on nationalisation as a State policy and the Ministry of Hydrocarbons responsibilities in putting it into effect.
Relevant Share Prices for Wednesday, 07 February 2007:
Tullow Oil down -4.50 to stand at 411.25
Desire Petroleum down -0.25 at 32.00
FOGL down -1.00 to stand at 94.00
Rockhopper Exploration unchanged to stand at 44.00
Borders & Southern up +0.50 at 30.00