BusinessWorld Online is reporting that production has resumed at Galoc field in northwest Palawan. Operations were suspended in June due to bad weather.
The Galoc oil field is estimated to contain 10 million barrels of oil, and produces between 12,000 and 14,000 barrels per day. Crude oil from Galoc is expected to generate foreign exchange savings for the country worth over a billion dollars during its lifetime. The oil field’s production is 6% of the country’s total demand of 300,000 barrels.
Vitol has a 68.6 percent stake in GPC along with Otto Energy with 31.4 percent.
Thursday, August 13, 2009
Friday, August 7, 2009
Gas Embargo on Iran
There has been a lot of talk in Washington about cutting off Iran's gas imports to pressure Iran to stop enriching uranium. Robert Naiman of The Huffington Post wrote on this issue and explains why this, in his words, is a "stupid idea."
For one, Naiman says, without the support of other allies, this type of action would have little impact. "A U.S.-sponsored gas embargo on Iran isn't likely to have much impact if Russia, China, Turkey and half of Europe aren't cooperating - after all, it's not the U.S. that's exporting gas to Iran - unless it is imposed by force. "
Naiman also points out that Iranian retaliation, which they have threatened to do by stopping oil exports to the West, could have a significant effect on gas prices in the U.S. He estimates a price jump of 30%, which could have political implications for Obama. "If you think the teabagger right wing in the U.S. is nuts now, wait until they can blame $4 a gallon gas on an Obama Iran gas embargo demanded by the Israel Lobby," Naiman says.
Naiman suggests several other reasons why a gas embargo is a bad idea in addition to lack of support, Iran retaliation, and increased gas prices. He makes some really interesting points. I suggest you check out his article, "Mr. Mousavi's Gas Embargo on Iran?"
For one, Naiman says, without the support of other allies, this type of action would have little impact. "A U.S.-sponsored gas embargo on Iran isn't likely to have much impact if Russia, China, Turkey and half of Europe aren't cooperating - after all, it's not the U.S. that's exporting gas to Iran - unless it is imposed by force. "
Naiman also points out that Iranian retaliation, which they have threatened to do by stopping oil exports to the West, could have a significant effect on gas prices in the U.S. He estimates a price jump of 30%, which could have political implications for Obama. "If you think the teabagger right wing in the U.S. is nuts now, wait until they can blame $4 a gallon gas on an Obama Iran gas embargo demanded by the Israel Lobby," Naiman says.
Naiman suggests several other reasons why a gas embargo is a bad idea in addition to lack of support, Iran retaliation, and increased gas prices. He makes some really interesting points. I suggest you check out his article, "Mr. Mousavi's Gas Embargo on Iran?"
Friday, July 24, 2009
Vitol's Intention to Acquire Hillsborough
IBT Commodities reported yesterday that shares of coal miner Hillsborough Resources increased more than 41 per cent to 44.5 cents on Monday, after Vitol Anker International B.V., a wholly owned subsidiary of the Vitol Group, announced its intention to make an offer to acquire all of the common shares of the company that it does not currently own for 45 cents per share.
"Our offer presents compelling value to Hillsborough’s shareholders and creates an immediate opportunity for shareholders to receive cash proceeds for their investment. Our offer price reflects our respect and enthusiasm for Hillsborough’s business,” said Jacobus Sterken, Vitol Anker’s Director.
"Our offer presents compelling value to Hillsborough’s shareholders and creates an immediate opportunity for shareholders to receive cash proceeds for their investment. Our offer price reflects our respect and enthusiasm for Hillsborough’s business,” said Jacobus Sterken, Vitol Anker’s Director.
Friday, July 10, 2009
More Oil Traders
Ari J. Officer wrote an article for TIME magazine arguing the need for more oil traders. He says the Obama Administration can’t stabilize prices by regulating speculators. According to the article, limiting trading would make the oil-futures market smaller than it currently is, something Officer believes is dangerous.
“The oil-futures market is tiny compared with the physical oil market: less than 3% of the world’s oil consumption over the next year is accounted for in the open interest.”
Because oil is an international commodity and the U.S. government can’t regulate the global market, Officer believes that the U.S. “should not outsource markets by placing a divide between America and the rest of the world.”
Check out the article. It is an interesting read.
“The oil-futures market is tiny compared with the physical oil market: less than 3% of the world’s oil consumption over the next year is accounted for in the open interest.”
Because oil is an international commodity and the U.S. government can’t regulate the global market, Officer believes that the U.S. “should not outsource markets by placing a divide between America and the rest of the world.”
Check out the article. It is an interesting read.
Tuesday, July 7, 2009
Oil Prices
The Wall Street Journal reported yesterday on the decrease in oil prices after a year long rally that culminated in its best quarter since 1990. This is interesting given what happened last year after oil reached a remarkable high of $145.29 a barrel only to fall 77% in seven months.
The high price of oil this year is unexpected given the low demand. As Vitol CEO Ian Taylor noted last month, “The recent rise in oil prices [does] not appear to sit comfortably with the currently available supply and demand data."
The downward pressure on oil is so great it could trade for as little as $20 a barrel by the end of the year, according to the Chicago Tribune. This is due to the lessened demand at a time when there is a big surplus, Philip Verleger Jr., an expert on energy markets at the University Calgary, told the Tribune.
It will definitely be interesting to see what happens the rest of the summer.
The high price of oil this year is unexpected given the low demand. As Vitol CEO Ian Taylor noted last month, “The recent rise in oil prices [does] not appear to sit comfortably with the currently available supply and demand data."
The downward pressure on oil is so great it could trade for as little as $20 a barrel by the end of the year, according to the Chicago Tribune. This is due to the lessened demand at a time when there is a big surplus, Philip Verleger Jr., an expert on energy markets at the University Calgary, told the Tribune.
It will definitely be interesting to see what happens the rest of the summer.
Thursday, July 2, 2009
Update on Galoc Oil Field
Production at the Galoc oil field in the Philippines was delayed due to technical problems following the halt in production last week because of adverse weather. UPI and BusinessWorld covered Vitol’s decision to delay production.
Tuesday, June 23, 2009
Galoc Considers Increasing Production
According to Reuters, Galoc Production Co (GPC) is considering increasing production of the Galoc oilfield offshore of the Philippines. Currently, Galoc produces between 12,000 and 14,000 barrels per day from two subsea wells.
Vitol has a 68.6 percent stake in GPC along with Otto Energy with 31.4 percent.
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