Posts by Orzuri

Try the FLNG concept. Could be interesting for you.

I think it is a very good concept.

Crude oil price should go up in 2010 in line with a better economic outlook, spurring the award of new oil and gas projects, according to OSK Research.

The research firm said that its forecasts for crude oil price are US$60 to US$70 per barrel for this year and US$70 to US$80 per barrel for 2010.

In May, there was this article : http://blogs.wsj.com/environmentalc…rude-forecasts/
It said "Seeing a slower recovery in global economic growth–the euro zone reported a record contraction–and oil consumption than a month ago, the analysts on average cut their 2010 price forecasts for the U.S. benchmark, WTI, to $62 a barrel. That’s an 11% reduction from an average price of $70 a barrel projected just last month."

I wish to make a guess too, but I will watch till the end of the year to see the mail factor : Is the global economy recivering or not??

I think the demand will not rise because of the following reasons :

1. The rising economy is not real. The fundamentals are still not strong.
2. The demand for commodities has dropped and will remain low. Consequently, the demand will remain low for another 2 years at least.

Why the oil prices will not rise too much than the present level of USD 65 :
Weak industrial production and many industries suffering
Shrinking World Trade
Reduced demand
High unemployment
Low investor confidence
Controlled/reduced bank lending
OPEC is maintaining the output

Why the oil prices will not fall too much than the present level of USD 65 :
The oil inventories are now at a sustainable level
Rising stock market

Predict the oil prices? Not really. Mine will be more of a guess.

I do not want to predict and sound like the many analysts in the financial world who predicted over and over again until the markets crashed and are still crashing. But guessing - I will do.

My guess is that the oil prices will hover between $35 & $45. I will wait until 31st of May to check if I am right.

The world's top gas exporting nations will set up a formal organisation in Moscow when they meet on December 23.

The forum's country members include Algeria, Bolivia, Brunei, Egypt, Indonesia, Iran, Libya, Malaysia, Nigeria, Trinidad and Tobago, UAE, Qatar, Russia, Venezuela and two observer members -- Equatorial Guinea and Norway.

The three members of the future group - Russia, Iran and Qatar - whose combined output is more than half of global production - have agreed to set up what Moscow called a separate "gas troika", which they said would coordinate long-term investment plans.

Above is an extract from <link removed>

World Oil and Gas News

Now that Obama has won the U.S. presidential elections, we in the oil & gas industry can quickly trace back the last few months of talk, campaigns, etc etc

The general opinion is that McCain is more for opening up the U.S. oil domestic reserves and oil drilling.
Obama is more for conserving energy and research/work towards alternate energy.

Above statements are very broad. The specifics should be available in due course.

Offshore drilling contractors and companies have reported the third quarter profits to be higher than the earlier quarter.

While Diamond Offshore profits rose 51%, Ensco's profits rose 5.8%. The rental rates for deep-water drilling rigs are approaching $700,000 per day.

But it may not be all that rosy. The market when the oil prices are low have yet to be tested. That, combined with many likely cancellations and rig orders will probably shake the market. The other drilling companies will release their quarterly results soon : Pride International on 30th October and Transocean on Nov 5th.

The 150th (Extraordinary) Meeting of the OPEC Conference will be hld on Friday, 24 October 2008 at Vienna, Austria.

The discussions will most likely be on "stabilising" the oil market.. simply put - reducing oil output to let the prices rise.
For some time, if we believe that the output will be reduced and the prices rise. What comes next?
The fear of recession is still on. Some people have lost their jobs. Many have lost money. The consumption will definitely drop.

The analysts are always ready with figures. Always publishing - amending again - publishing again with new reasons for the amendments.
Nothing can be more true than the real thing. Shall I say, the faith in the analysis reports has dropped also. Each individual seems to be his own quiet analyst. He always was...just that the weight on his own analysis is much more now than the weight on an external analysis published by some analysts who could not predict his own doom

But nothing seems to surprise us these days. We are all anxiously waiting for the meeting to finish.

Worldoils Notes : Oil and Gas Prices

Yes. The prices have dropped below $80. It is official.

But the normal consumers have other woes. No prizes for guessing... the banks, stock market, financial crisis.. whatever.

But being in the oil industry, this drop in price is going to affect the rig builders, exploration, advancement of technology. The party begins for some and ends for some.

An interesting read from http://www.thaindian.com/newsportal/bus…_100105119.html

Venezuelan President Hugo Chavez has suggested the creation of an international oil bank aimed at ensuring energy security in the face of uncertain and speculative oil prices.The proposed bank could be formed within the Organization of the Petroleum Exporting Countries (OPEC) or failing a consensus in the cartel, by major non-OPEC nations, he said.