More BP Alaska pipeline news

An aerial photo of the BP leak site in Alaska

US could open emergency oil reserve as BP battles leak
channelnewsasia.com :

The US government has said that it would take a "serious look" at requests from refiners to tap the nation's emergency oil stockpile after BP said it was shutting down a critical Alaskan pipeline. The Strategic Petroleum Reserve, an emergency stockpile which is only meant to be tapped in times of national crisis, currently holds 688 million barrels of oil. The SPR was last opened up to refiners after devastating hurricanes ravaged US oil installations a year ago. Prudhoe Bay accounts for about half of Alaska's total oil output and about 8% of total US production.

BP restart of Prudhoe Bay oil field may take months
marketwatch.com :

The restart of crude oil production at the BP-operated Prudhoe Bay field in Alaska could take months as the energy major works to diagnose and repair problems in a pipeline system. The U.S. West Coast is highly dependent on crude supply from Prudhoe Bay. The legendary oil field has been producing since 1977 and hit peak output of about 1 million barrels a day in the late 1980s. Since then, the field has been in gradual decline.

Oil production at Prudhoe Bay could take six months or, perhaps, as much as a year to return to normal, Societe Generale said. "The whole thing will take at least a couple of weeks, which could turn into months if the problems turn out to be extensive," said Phil Flynn, an analyst and trader at the Alaron Corp. brokerage in Chicago.

Alaska launches BP probe
news.yahoo.com :

Alaska Governor Frank Murkowski suggested that BP misled the state with satisfactory maintenance reports and launched an investigation into the oil giant's handling of its pipeline corrosion. Alaska is expected to lose $6.4 million a day in tax revenues during the Prudhoe Bay shutdown and Murkowski instituted a hiring freeze for all state government jobs until there is more information about the duration of the shutdown.

Alaska House Speaker John Harris said lawmakers plan a series of hearings into pipeline corrosion starting next week. Those hearings should include information from oil-field whistle-blowers who have warned in the past about corrosion, and possible shortcomings in state oversight, said Harris, a Republican from Valdez.

Fed calls a halt to US rate rises

news.independent.co.uk, channelnewsasia.com :

The Federal Reserve called a halt to more than two years of relentless interest rate rises, signalling that the US economy was slowing sufficiently to allow a pause in its battle against inflation. The Fed kept rates on hold at 5.25 per cent after 17 consecutive quarter-point increases. It marked the first time since June 2004 that the Fed has not raised the federal funds rate. The bank had brought the rate up from a 46-year low of 1.0 percent, which was put in place to guard against the threat of recession-induced deflation.

Its decision came after a slew of economic data which showed the US economy slowing more sharply than predicted and as Wall Street and the business community began to fret that the Fed may already have tightened monetary policy too far. But the decision was complicated because inflation has remained stubbornly high. The jump in oil prices, which has pushed up petrol prices and caused consumers to rein in their spending, has also contributed to rising prices across the economy.

The clincher appeared to be last month's GDP figures for the second quarter of the year, which showed the US economy growing at 2.5 per cent - much weaker than expected and a sharp drop from the 5.6% GDP growth in the early part of the year. The Fed said economic growth had moderated because of a cooling housing market, high energy prices and the cumulative effects of its long series of rate rises since June 2004.

(2006-08-10 13:52:33 SGT) [Biz] Permalink

MAS, Law Ministry propose changes to unsecured credit rules

channelnewsasia.com :

The Monetary Authority of Singapore (MAS) and the Law Ministry have proposed several changes to unsecured credit rules. Currently, financial institutions such as banks have to comply with MAS's set of unsecured credit rules, but moneylenders do not. Under the proposed changes, moneylenders will also have to comply with the rules with appropriate modifications.

Both moneylenders and banks may benefit from one of the key recommendations: lowering the minimum income for unsecured credit facilities to S$20,000 from S$30,000. The minimum income requirement for credit cards remains at S$30,000. Another proposal is for those earning at least S$30,000 a year to be allowed a maximum credit limit of four times their monthly income - while those with an income of between S$20,000 and S$30,000 will have a limit twice their monthly income.

The MAS and Law Ministry are inviting comments to a consultation paper on the new rules. The consultation paper can be accessed online at the Government Consultation Portal. The consultation period will end on 7 September.

channelnewsasia.com :

More than 45% of those took part in Channel NewsAsia's online poll felt that there would be more bad debt if lower-wage earners got access to the unsecured credit facilities, meaning they do not have to put up any collateral for taking out loans. This view is shared by industry observers.

Some 460,000 people will immediately qualify to take out unsecured loans, if the new rules are adopted. This means banks will potentially have a 20% rise in customers for such loans. Based on a minimum S$20,000 annual income, and twice the monthly income for those who qualify, the extra amount of loans that banks can give could amount to more than S$1.5 billion.

- More easy credit. As if anticipating this move, I've noticed that the banks have been stepping up their "credit line account" efforts (/spam) recently.

(2006-08-10 13:21:35 SGT) [Biz] Permalink

Dubai to retake control of offshore oil fields

channelnewsasia.com :

The Gulf emirate of Dubai has said that it would take back operating control of its offshore oil fields next year from US oil and gas giant ConocoPhillips, ending a 45-year partnership. In a joint statement, Dubai authorities and ConocoPhillips' wholly owned subsidiary Dubai Petroleum Company (DPC) said the handover would take place on April 2, 2007. Dubai granted the oil concession in 1961 to DPC.

Dubai's oil production fell from 350,000 barrels a day in 1995 to 140,000 barrels a day in 2005. The emirate's confirmed oil reserves are four billion barrels, and 117 billion cubic metres of gas. Overall, the United Arab Emirates is currently the fifth-placed producer of crude oil within the Organisation of Petroleum Exporting Countries (OPEC).