Tuesday Late Night Reading
Posted by zmann on October 10, 2006
Wecome FUM and Oil Sands ETFs. The ISE has launched an index of 30 pricipally gas producing companies, ticker FUM, which began trading Oct 10. Not sure there’s need beyond the XNG but usually these things come about when the sector’s about to tank, so come on in! Also, the Claymore oil sands ETF is expected to begin trading next week.
Sometimes The Big Guy Loses. Exxon loses Natuna gas field contract in Indonesia over high extraction costs, failure to develop markets for the gas. XOM is going to contest but this is disturbing coming on the heals of 2 recent Russian rebuffings (Sakhalin 1-oil and Shtokman – natural gas).
OPEC Watch: —NEWS FLASH—NO NEWS TODAY (YET)
—Kuwait says winter in the US will boost oil a few dollars but not back to summer highs. That’s pretty lame guys.
—Nigeria let another 60 Shell employees be forced to spend the night sitting cross-legged on wet concrete. 12,000 bopd was shut in as well. Shell’s going to have to start paying its people more or it’s going to lose them to the truck driving business in Iraq. Can’t the UN send some peacekeepers to guard these platforms?
–Venezuala. Chavez orders the impoundment of all beer trucks. No kidding. This guy knows how to get the support of the people. He also stuck it to big oil again with $300 million + in back taxes (bend over again HNR), cancelled gasoline sales to Cuba for October (aren’t they comrades?), and then bought gasoline on the open market from BP (of all companies, pick someone who could actually get it to you Chavi). Production must not be doing so well these days now that you’ve gutted PDVSA. Remember, you still have to buy 100,000 bopd through year end from Russia at May prices to cover commitments (ouch). http://www.caribbeannetnews.com/cgi-script/csArticles/articles/000036/003630.htm
— Saudi Arabia will maintain crude oil sales to its core Asian customers at 100 percent of their contracted volume in November. Don’t pick favorites Sauid. We want your oil too.
High Winds Knock Out Prudhoe’s Lights. Prudhoe Bay’s production is down to 20,000 bopd from 350,000 over a power outage casued by high winds. The market shrugged this off late this afternoon but please, what will they think of next?
ABC News Says Montana Coal Could Save Us From OPEC. Ok, they said something like that here http://abcnews.go.com/Technology/story?id=2550191&page=1 . Their governor wants to turn Montana’s abundant coal supply into diesel fuel using the age old Fishcher-Tropsch gassification process. Word to the wise, never invest in the guys trying to make it work. The play here is SSL who make the F-T gassifiers and run a legitimate, growing business.