Thursday July 06, 2006

US crude oil hits $75.40, a new record high

smh.com.au :

US crude oil futures ended at a new all-time record above $US75 on Wednesday, fueled by rising geopolitical tensions and a gasoline rally. North Korea's launching of missiles with a range capable of hitting the US West Coast or Alaska and ever-present worries over Iran's nuclear enrichment supported the day's advance.

Crude for August delivery settled at a record $US75.19 a barrel on the New York Mercantile Exchange, after hitting a new front-month high of $US75.40. Those were the highest front-month prices since NYMEX introduced its crude oil contract in March 1983.

See also :

1. Oil breaks through record $75
2. Oil prices soar to record high of $70.88 US

(2006-07-06 22:40:40 SGT) [Energy] Permalink Comments [1]

Stormy seas ahead in China's hunt for offshore oil

business-times.asia1.com.sg :

China has identified its seabeds as the next frontier in the search for the energy it needs to fuel growth. China's crude output is expected to be 3.7 million barrels per day (bpd) this year, against demand forecast at nearly 7 million bpd, prompting state firms to hunt for oilfield assets around the world.

Canada-based Husky Energy Inc, which has a joint venture with CNOOC, had announced China's first deep-water find, a bumper reserve it said to be larger than 2 years of total national production. But shortly after that, CNOOC issued a warning that total reserves have yet to be ascertained, underlining other questions that still cloud Beijing's optimism.

Some of the most promising areas are off limits anyway. Japan and China's already tense relationship has been worsened by arguments over who owns the title to gas near their maritime boundary in the East China Sea. And parts of the nearby Spratly islands are claimed by China, Taiwan, Vietnam, Malaysia, Brunei and the Philippines, meaning there are political limits to solo drilling.

See also :

1. Large natural gas field discovered offshore China

(2006-07-06 22:35:59 SGT) [Energy] Permalink

15 shipping lines to add levy

business-times.asia1.com.sg :

AP Moeller-Maersk A/S, Neptune Orient Lines Ltd and 13 of the biggest shipping lines that sail between Asia and Europe said they will impose a peak season surcharge from Aug 1 to recover part of rising fuel costs.

The 15-member Far Eastern Freight Conference will add a surcharge of US$90 per 20-foot standard containers moved from Asia (excluding Japan) to Europe. The group, which accounts for about 60% of trade between the two continents, will impose the levy until Oct 31.

(2006-07-06 22:28:03 SGT) [Energy] Permalink

CPF and IBM in legal spat over IT project

business-times.asia1.com.sg :

Singapore's Central Provident Fund Board (CPF) and computing giant IBM are embroiled in one of the biggest IT lawsuits here in recent history. The spat dates back to December 2001 when IBM bid for and won a contract to design and build a new IT system for CPF. The deal was worth more than $32 million.

CPF is suing IBM - and IBM is counter-suing. CPF claims that IBM failed to complete a contracted IT project and it is asking the court to assess damages that could amount to more than $40 million. In its counter-suit, IBM claims it was unable to complete the IT project because CPF radically changed its requirements after the contract was signed. It is counter-claiming more than $38 million from CPF.

(2006-07-06 22:25:13 SGT) [Biz] Permalink

Malaysia suspends biodiesel effort

peakoil.com -> chron.com :

Malaysia has suspended giving new licenses for biodiesel production projects amid concerns that an excess of projects could deprive the food market of palm oil, widely used in cooking. The government received 87 applications since last year, raising concerns that it could eat into crude palm oil, or CPO, reserves meant for food and oleochemical industries. Rising crude oil prices have sparked keen interest in converting palm oil into methyl ester, a diesel substitute.

With an annual CPO production of 15 million tons, Malaysia is the world's biggest producer of crude palm oil, the main ingredient of biodiesel. Spurred by the interest in the fuel, the government has so far approved 32 biodiesel projects with a combined production capacity of about 3 million tons.

See also :

1. Indonesia, Malaysia turn to biodiesel
2. Malaysia wants to be world's biggest biodiesel producer
3. So much for biodiesel

(2006-07-06 22:21:01 SGT) [Energy] Permalink

Mideast boom squeezes gas oil flow to Europe, Asia

peakoil.com -> today.reuters.com :

An oil fueled economic boom in Middle Eastern countries is driving local demand for gas oil such as diesel, squeezing supplies to Europe and Asia. Accelerating growth and a construction boom in countries including Qatar and Saudi Arabia have boosted domestic consumption just as the global refining industry is already straining to meet existing demand, particularly from Asia. The United Arab Emirates' economy grew more than a quarter last year, while Saudi Arabia and Egypt are forecasting growth of at least 6% this year.

Moves by governments to diversify their economies away from reliance on oil production have further fueled local consumption. The Saudi government in April approved the construction of an aluminum smelter, two months after the UAE unveiled plans for a $6 billion smelter complex.

See also :

1. Middle East as energy consumer
2. Arab oil money
3. Gulf Arab states to invest surplus oil money in China and India

(2006-07-06 22:08:57 SGT) [Energy] Permalink

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