HYDROCARBONS DAILY RECORD
05 May 2006
Mayo de 2006
By J. Brock
Morales of Bolivia will be in Vienna next week to meet with European Oil
Authorities and Companies
At 1800 LMT on Friday, 05 May 2006, prices reflected a slight rise in the price
per barrel with Light Sweet Crude .25 Cents higher at £70.19 and Brent Crude .66
Cents higher at $70.95. This reflects cautious patience in analysing indicators
that normally would cause nervousness.
Contributing factors seem to be the sabre rattling between the US and its allies
through the UN Security Council and Iran over uranium enrichment. Iran has been
firm in its denial of accusations that the enrichment is for Military means. The
naturally reticent Iranians, playing their cards close to the chest, remain firm
in their argument that enrichment is for power generation and nothing more. Even
though Iran has offered the IAEA access for surprise inspections, the US views
Iran’s nuclear fuel enrichment programme with suspicion.
In South America there was an impromptu meeting between the presidents of
Argentina, Brazil, Bolivia and Venezuela on Thursday. President Kirchner of
Argentina and President Lula of Brazil advised Bolivia’s President that
unpalatable contracts will not do Bolivia any good. They did, however, agree
that it was good that Bolivia took control over its natural gas reserves.
Analysts say that unpalatable contracts lead to the decline in Venezuela’s
production from 3.3 Million barrels per day to approximately 2.5 Million barrels
per day. The take-over has already put on hold a planned expansion of a gas
pipeline by the Brazilian Oil Company, Petrobas and it is possible that if the
contracts are too harsh other investment will be sized down or cut off
Next Week President Alvo Morales of Bolivia will travel to Vienna, where he will
meet with oil industry officials in the European Union. With dialogue he may be
able to allay fears that those contracts will not be workable. We wait and see.
Local companies with oil interests are looking with caution on the events in
South America. It is hopeful that contracts for Bolivian Gas will follow along
professional, rather than political lines, in that the industry should help to
offer alternatives as well as governments. A purely political solution may not
benefit the industry or the people of Bolivia, who desperately need more support
from their hydrocarbons industry.
Buchanan will be acting as ongoing media advisors to Desire. Basic plans include
introductions to the financial media and oil and gas trade journals, extensive
introductions to City analysts who cover the oil and gas space and further
introduction to retail brokers.
Desire are presently working on the media materials and hopefully will advise on
some changes to the format of the website – so over the next few months they
hope to build up the profile of Desire in a consistent, clear way.