Energy & OilEnergy & Oil
Falkland Island Holdings PLC announced on Monday that its pre-tax profit increased slightly in its first half as strong sales at the company's London-based Momart operations offset increased costs at its Falkland operations. The international services group, which focuses on transport and logistics, said its underlying profit before tax was up 14.8% to £ 1.37 million for the six months ended September 30 compared to £ 1.19 million the previous year.
The dispute between the Argentine government and Repsol over the seizure of a 51% stake in petroleum company YPF has shown some signs of cooling, with the Ministry of Economy announcing on Monday that an agreement in principle for compensating the Spanish corporation had been reached.
As Canadian energy stocks are finally seeing a bit of a push, and demand for Canadian commodities looks set to rise, juniors are confident that economics will ensure that Canadian oil—the cheapest in the world—will find its way to more markets, with or without Washington's approval of Keystone XL.
United States sided with Spain's Repsol position in the dispute over the seizure of a majority stake in YPF by the administration of Argentine President Cristina Fernandez last year, a dispute which remains unresolved over compensation for the assets.
Long gone are the days of easy money, so it seems. Junior energy companies are finding today’s capital to be more expensive and harder to access. In the current market, juniors are fighting an ongoing battle just to balance sustainable growth, manage debt, and to compete with peers for dollars that just aren’t there. When assessing a junior, one must look at how they put their budgets together and maintain them if they’re to survive out there in the wild.
Japan unveiled a new wind farm off the coast of Fukushima last week. Only thirteen miles offshore from the Fukushima Daichi nuclear power station, the same nuclear station that notoriously attracted the world's attention during the 2011 Japanese tsunami, the new wind farm is expected to produce upwards of one gigawatt from 143 wind turbines. For comparison, the now-inoperable Fukushima Daichi nuclear power plant could provide 4.4 gigawatts.
Technology and high prices are opening up new oil resources, but this does not mean the world is on the verge of an era of oil abundance, according to the International Energy Agency’s (IEA) 2013 edition of the World Energy Outlook (WEO 2013).
OPEC said on Tuesday its rivals will produce more oil than expected this year, as it continued backpedaling from its previous skepticism over the significance of a US shale boom. The views of the Organization of the Petroleum Exporting Countries show it is narrowing its differences with oil consumers on the impact of resurgent North American output.
Argentina has begun a determined campaign to deter companies from drilling for oil in disputed waters around the Falkland Islands in the south Atlantic. On the eve of a visit by UK parliamentarians to Buenos Aires this week, the Argentine embassy in London warned that legal action was being ramped up against drillers and their suppliers, reports Terry Macalister in The Guardian.
Falkland Oil and Gas Ltd, FOGL, announced on Friday it has started the third 3D seismic survey of its northern area licences in the Falkland Islands. The oil and gas exploration and development company with operations in the Falkland Island Basins said the PGS Ramform Titan ship has begun the survey over the mid-Cretaceous complex.