ASPO Newsletter #62

The February issue of the ASPO newsletter is now available. Topics covered include Kuwait's reserves, the European energy crisis, Norway's production, the automobile industry, and more.

(2006-02-06 23:26:50 SGT) [Energy] Permalink

India plans US$1b investment in Canadian oil sands

business-times.asia1.com.sg :

India has jumped into the intense competition for Canadian oil sands assets with plans to invest US$1 billion over the next 12 months. India, which has mounted a high-profile hunt for foreign reserves to help power its growing economy, is not worried its plans will put it head-to-head with long-time rival China in bidding for Canadian oil sands assets, said M S Srinivasan, secretary of India's Ministry of Petroleum & Natural Gas. Chinese firms have been enthusiastic investors in north-eastern Alberta's oil sands over the past year, taking stakes in a handful of development projects and a pipeline proposal.

Another big consideration is the ability to get the crude wrung from the oil sands to refineries, he added. Northern Alberta's oil sands are already the target of an estimated US$100 billion of investments in new projects and expansions of those that are already producing. The resources rival Saudi Arabia's conventional oil reserves in size, but are far more expensive to develop. With surging oil prices and tight energy supplies in the US, the oil sands have in the past year taken centre stage amid the quest for secure reserves.

(2006-02-06 18:45:29 SGT) [Energy] Permalink Comments [1]

Environmental industry in Singapore

business-times.asia1.com.sg :

Singapore has her own water related marvels, the chief of these may be NEWater - used water purified to drinking quality - others may cite the rapid ascension of Singapore-based Hyflux as a global water player. But water makes up only 40% of the global environmental industry, which is worth more than US$600 billion (S$1 trillion) and Singapore wants to be a part of it all. In its State of the Environment 2005 Report, the National Environment Agency states that there are more than 250 environmental companies operating in six main sectors: waste management and recycling, energy services, pollution control, pest management, cleansing services and, water and used water treatment.

The alternative energy industry could jockey for a place beside the crucial oil trade. Last November, the Minister for the Environment and Water Resources, Yaacob Ibrahim, said: 'As photovoltaics become less expensive and oil prices continue to rise, the 'sunbelt' countries along the Equator would be among the first to adopt photovoltaic electricity on a commercial basis, and Singapore is well-postioned to serve these markets.'

Going forward, the EDB plans for the environmental sector to contribute about 1.5% of GDP by 2015. It said that in 2003, the industry contributed 0.6% to GDP, or about S$1 billion in value-added, and hired about 20,000 workers.

Soaring fuel costs cut SIA 3Q2005 profit by 14.6%

channelnewsasia.com :

Singapore Airlines has posted a net profit of S$397 million for its fiscal third quarter. The profit for the three months to December was down 14.6% from the same period a year ago. Not surprisingly, high fuel costs ate into the profit margin.

The nearly 4.4 billion passengers carried in the third quarter were the highest recorded for any quarter. But faced with soaring fuel costs, the carrier's expenditure also jumped, by 14% to S$3 billion. SIA spent close to S$1.2 billion on fuel in the third quarter, up almost 50% from a year earlier. Fuel costs account for 37% of the airline's total expenditure. Going forward, SIA expects high fuel prices will continue to be a concern.

business-times.asia1.com.sg :

Singapore Airlines is expected to post its fourth straight quarter of declining profits today as record-high jet fuel prices eroded earnings. Despite a near 60% rise in the cost of jet fuel last year, analysts expect SIA to have fared better than most of its global rivals. Industry experts attribute SIA's success to its low operating costs as well as its success in using the futures market to reduce its exposure to rising fuel prices. The International Air Transport Association said the airline industry suffered a collective loss of US$6 billion in 2005.

Analysts believe the airline's main concern - fuel prices aside - will be growing competition from the Middle East, where carriers such as Emirates, Etihad and Qatar Airways are aggressively trying to lure passengers away from the Europe-Australia route.