zman’s Energy Brain

oil, gas, stocks, etc…

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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.

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6 Responses to “Tuesday Late Night Reading”

  1. Jon said

    Zman,
    Talking about gassifiers…I’m wondering if you have any opinion about the waste-to-diesel process called “catalytic depolymerization”? Maybe in your experience you’ve run across a real evaluation of the process.

    One specific implementation, invented by Christian Koch, is marketed in Germany under the name “Alphakat”.

    http://www.alphakat.de/Welcome/welcome.html

    While I don’t doubt that the process works, it seems quite likely that the process consumes more energy that it produces. A company called Green Power is demonstrating the idea around the country, recently in the northwest.

    http://archives.seattletimes.nwsource.com/cgi-bin/texis.cgi/web/vortex/display?slug=greenpower27&date=20060727

    Try to ignore the shady past of the company’s CEO and the fact that the inventor worked on this idea for 40 years, but he is supposedly only 55 years old.

    Jon

  2. zmann said

    I’ve heard it called “distilled garbage, or cooking trash” from time to time. All of these pseudo fuel creation processes were created in a garage long ago and many of them do work, if not at commercial or economical thresholds. I’m not familiar with Green Power but the story you sent is kind of scary and pretty typical of this class of “save the world entrepreneur/flea circus magnate” complete with the “please ignore my past” clause.

    The closest public play of this variety, aside from all the recent ehtanol and biodiesels, is KFX, who actually got funding, built the first commercial plant, and apprear to be on the verge of making commercial deliveries of upgraded low quality coal using F-T technology. They’ve even gotten themselves a top notch management team to lend credibility to the “entrepreneurs”. I’m not, however, endorsing that stock at this time. Not when I believe commodities are headed lower making the marginal benefits of these kinds of plays somewhat dicey.

  3. ramana said

    A great site zmann. I love all this info on Oil and Gas. Excellent. I will be back again…

    – Ramana

  4. zmann said

    Thanks Ramana, it’s a work in progress. Let me know if there’s anything else you’d like to see here.

  5. Essa Morty said

    your way to beautiful gir. Essa Morty.

  6. and i don’t know, how to make it bette. Gautam Asaf.

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