Falklands : Hydrocarbons Daily Record Monday, 12 May 2008
Submitted by Falkland Islands News Network (Juanita Brock) 13.05.2008 (Article Archived on 27.05.2008)
Analysts today are blaming a decrease in demand due to high prices as the cause of declining crude prices.
HYDROCARBONS DAILY RECORD MONDAY, 12 MAY 2008
By J. Brock (FINN)
At 1930hrs LMT on Monday, 12 May 2008 Light Sweet Crude was trading at $124.23 down $1.73 on the New York Mercantile Exchange. Brent Crude was trading at $122.91 down $2.49 on London’s ICE Futures Market.
Analysts today are blaming a decrease in demand due to high prices as the cause of declining crude prices. HDR has been saying this all along and it’s about time someone else saw the trend. Thankfully not too many people will have to heat their houses in the United States and China this summer but the crunch for the health of those nations will come this winter when people in unheated homes get sick.
An indication of things to come will be this summer when the demand for gasoline declines due to the high price of hydrocarbons products. It’s foolish for analysts to say that demand will go up when people in the US and in developing economies are cutting back on road trips and/or switching to alternative energy.
With crude oil on the international market touching $126 a barrel, it is clear that the rise in price has little to do with underlying trends on either the supply or demand side. To put the latest price spurt in perspective, it is worth recalling that the Indian basket of crude oil — which tends to be a little cheaper than the Brent sweet crude benchmark — averaged $23 a barrel in March 2002.
Note: 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
SHARE PRICES ON THE ALTERNATIVE INVESTMENT MARKET: Monday, 12 May 2008.
TLW: 917.00 up 10.00, DES: 90.50 up 1.00, FOGL: 150.00 up 4.00 RKH: 92.00 unchanged, BOR: 83.00 up 2.50 PRE: 12.25 up 0.25, GBP: 7.75 up 0.13, GPK: 430.50 up 30.00, BLT 1993.00 up 18.00, RDSA: 2059.00 up 12.00 RDSB: 2031.00 up 10.00
New York Stock Exchange:
XOM: 89.19 up 0.37 (USD)
THE MARKETS (12/05/08)
FTSE100: 6,220.60 up 15.91, FTSE250: 10, 531.10 up 93.78, SmallCap: 3,222.10 up 22.84
DJI: 12,876.31 up 130.43, NASDAQ: 2,488.49 up 42.97 S&P500: 1,403.58 up 15.30
Repsol YPF SA. and Royal Dutch Shell are currently renegotiating with the Iranian government their stakes in Iran's offshore South Pars gas field, but intend to retain a presence there, a source at Repsol told Agence France-Presse.
Dana Petroleum says it has found another oil field at East Rinnes in the UK northern North Sea.
The Ukrainian government has pulled U.S. company Vanco International's license to develop and produce hydrocarbons on the country's Black Sea shelf, the government press service said on Monday.
Latin America General)
Latin America’s political landscape has changed dramatically in the last decade. Democracy took a stronger hold throughout the region, especially in countries like Mexico and Peru, and more recently, governments have turned farther left in Argentina, Bolivia, Brazil, Chile – and of course, Venezuela.
(Argentina and Venezuela)
The governments of Venezuela and Argentina have signed an accord to set up a joint natural gas liquefaction and transportation enterprise in Guiria, a city in Venezuela's eastern state of Sucre, Venezuela's state oil enterprise PDVSA said Friday.
According to Bill Herbert, an analyst with the investment banking firm Simmons & Co Intl, Petrobras (NYSE:PBR) is close to issuing letters of intent for as many as 17 new offshore deepwater drilling rigs. These will be for new build drill-ships and semi-submersibles. This should happen before the end of next week. The total bill for these new rigs could be huge.
The suggestion that Mexico’s national energy company should be opened up for foreign investment makes sense on paper, but politics and public opinion pose major barriers
High-level government officials are signaling that Peru will select a proposal to place a natural gas pipeline through the Andes Mountains.
Venezuela's Citgo Corp. could become the operator of a U.S. refinery in Chalmette, La., a Venezuelan official said Thursday.
MINERAL RESOURCES COMMITTEE MEETING REPORT (09/05/08)
By J. Brock (FINN)
A meeting of the Mineral Resources Committee took place at 1400hrs on Friday, 09 May 2008 in the Mineral Resources Department conference room. Present were Cllrs Hansen (IH), Summers (MS), and Birmingham (JB), as well at the Chief Executive Mr Tim Thorogood, Attorney General Mr David Pickup QC, Director of Agriculture and Mineral Resources Mrs Phyl Rendell, Miss Pippa Christie and Mrs Katrina Stephenson. Apologies came from Cllr Janet Robertson.
The minutes of the meeting held on 21 February 2008 were confirmed and only one matter, the confirmation that calcified seaweed would be extracted by contract by the farmer in question.
Mrs Phyll Rendell, Head of the Mineral Resources Department, has reported that since the last meeting in February there has been a hive of activity with two overseas visits that have been widely reported.
In early March a joint operators’ meeting took place in Edinburgh. Mrs Rendell and Councillor Rendell attended the meeting. Mrs Rendell, Phil Richards and Bob Gatliff from BGS met with company representatives privately during the main event. “Meetings were also held the day before the joint session, reports Mrs Rendell
According to Mrs Rendell, Licensees have joint meetings in London every few months but it was agreed when all the companies travelled to Stanley for meetings in October last year that a joint session hosted by FIG/BGS would be appropriate to ensure that both industry and the regulators could have a further opportunity to discuss matters related to offshore exploration and coordinate activities. She went on to say that all the licensees were represented and a very useful dialogue was had, particularly in relation to data sharing and release and guidelines for well designs.
Attendance at the American Association of Petroleum Geologists (AAPG) convention in San Antonio went well with the object being to fly the flag after having taken a year off to attend the Falklands Forum. It was important to learn about innovations in the oil industry as well as meet new contacts and keep in touch with old ones.
Dr. Colin Phipps, a founder of Desire Petroleum Plc has been commended by the Director of Mineral Resources in the Falklands Mrs. Phyl Rendell. Mrs Rendell said she was sorry to hear that Dr Phipps had to retire due to ill health. “He has been Chairman for te past 12 years and stuck with it,” she said. Dr Phipps and his team took over abandoned blocks and were responsible for the first 3D seismic in the Falklands when other exploration companies couldn’t afford it. Cllr Hansen will forward the Committee’s gratitude and thanks to Dr Phipps in the UK.
There are a host of promotional events that it would be good to attend if the budget allows such as an important South African event with relevant companies looking at the South Atlantic. The next AAPG meeting is in June in Denver, Colorado in the United States and a meeting of “NAPE” in Huston Texas in January 2009. It is important to attend these meetings and conferences to keep abreast with what the industry is doing and to keep in touch with important contacts.