Monday, June 9, 2008

Signal Oil and Gas - the second-biggest oil producer

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James Van Blaricum - Iran is the second-biggest oil producer in the Organization of Petroleum Exporting Countries, and traders worry that any conflict with Israel could disrupt global supplies.A weakening of the dollar also helped send oil prices higher last week by enticing overseas buyers armed with stronger currencies and others looking for a hedge against the greenback.( Info about signal oil & gas co)
Congress has been pressing the CFTC to take tougher action to stop what lawmakers call "speculation" -- which is not illegal -- and possible unlawful manipulation of oil markets. Some lawmakers have suggested that the commission discourage speculation by increasing margin requirements so that traders would have to put up more cash to buy positions on commodity markets.( Info about signal oil & gas co)

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signal oil and gas => That was oil's lowest settlement price for a front-month contract on Nymex since May 15. Prices are now more than $11 below the trading record of $135.09 a barrel hit May 22.Evidence continues to mount that oil prices nearly twice what they were a year ago have cut demand.
signal oil and gas => Khelil maintained that oil prices were high because of geopolitics, speculation and the dollar's fall.Two of Mexico's three main crude oil ports were closed to shipping on Sunday because of rough seas due to the proximity of tropical depression Arthur, the government said.
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A tumbling dollar is also contributing to the increase. Many traders buy commodities such as oil as a hedge against inflation when the dollar is falling, and a weaker dollar makes oil cheaper for investors dealing in other currencies.
It costs $200 million to drill and complete a single well at Jack’s 30,000-foot depths. But StatoilHydro is dedicated to the gulf. It has invested $8.5 billion there over six years. Reinertsen expects to drill 25 new wells by 2012.

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A stronger dollar is often viewed as a positive for many Asian economies that depend on U.S. consumer demand for their export markets.
The Commodity Futures Trading Commission, which normally keeps investigations confidential, said in a statement that it was "taking the extraordinary step of disclosing this investigation because of today's unprecedented market conditions."
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Toyota is also weighing snazzy new hybrid features, to prolong the buzz. "We want to extend the 'wow' of the hybrid," O'Brien says. One likely feature of the next-generation Prius: a button on the dashboard that allows the driver to run the gas-electric powertrain purely on battery power--perhaps for a couple of miles of driving--before the batteries hit a depletion point and the gas engine kicks back in. Its potent batteries could also support several two-prong power outlets for laptops and small appliances. That's a feature found on some big trucks and SUVs, which have robust electrical systems, but rare on smaller vehicles.( Info about signal oil and gas co)
It was unclear whether the commission's announcements were a reaction to congressional pressure, but they were praised by many lawmakers. Rep. Edward J. Markey (D-Mass.) said he was pleased, adding that "the CFTC must vigorously pursue all leads to protect the American people from market manipulation during a time of record prices at the pump."( Info about signal oil and gas co)

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signal oil & gas co profile => Dubai-Oman, used as benchmark for Middle East sour crude oil flowing to the Asia-Pacific region, Tapis (from Malaysia, used as a reference for light Far East oil)
signal oil & gas co profile => Iraq sits on the world's third-largest proven oil reserves, totaling more than 115 billion barrels. But the industry is plagued by a lack of modern equipment and training after decades of U.N. sanctions, war and Saddam Hussein's ruinous rule. Saudi Arabia, OPEC's No. 1 producer, currently pumps between 10.5 million and 11 million barrels per day.
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Williams said he wasn't sure whether the oil market's recent dips were proof that the bubble had burst. But, Williams said, "I think that somebody's pushing a pin in the side of the balloon."One force helping to tamp down oil prices is the economy. Sharply higher fuel prices have forced consumers to cut back, reducing fuel consumption, and triggered price surges for grocery items and anything else delivered to stores by train or truck. Those factors have loomed large in an economy already weakened by the nation's housing crisis.
The suspects in a growing number of grease infractions fall into a range of categories, people interviewed on the matter said, as grease theft is a crime of opportunity. They include do-it-yourself environmentalists worried about their carbon footprints, warring waste management firms trying to beat each other on the sly, and petty thieves who are profiting from the oil’s rising value on the black market.

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Global demand remains strong while "production capacity has not seen new development," Paulson said Sunday in Qatar. His trip was designed to urge Mideast producers to allow more outside investment to boost output.
South Korean exports last month jumped 27.2 percent compared with a year earlier, the fastest pace since August 2004.
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Others suggest that such short-term efforts to reduce fuel costs send the wrong message anyway to drivers who need cut consumption. Polls show that 70% of gas-rattled British voters are now unwilling to pay higher taxes to combat climate change. That hasn't stopped some European leaders from taking the bitter pill approach, arguing that today's pain over surging gas prices should be used to encourage longer-term environmental gain. "We don't need one-shot measures," French secretary of state for the environment, Nathalie Kosciusko-Morizet told parliament following Sarkozy's proposal, "but rather to free ourselves from oil." True enough. But that's cold comfort indeed for truckdrivers, fishermen, and summer vacationers who can't afford to fill up in the meantime.( signal oil gas news)
Eleven percent pool the use of their cars, and just five percent take the train or metro, according to data from the Census Bureau.( signal oil gas news)

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signal oil and gas co articles => The Energy Information Administration, part of the U.S. Energy Department, estimated Iraqi production at about 2.6 million barrels a day in early 2003. Production tapered off just before the U.S.-led invasion, according to the group.
signal oil and gas co articles => Still, Toyota's strategy is admittedly less aggressive than GM's. Instead of game-changing breakthroughs, which some GM executives are hinting at, Toyota plans to introduce a plug-in that's an incremental improvement on the Prius. "Think of it as a Super Prius," Reinert says. It will be able to travel 6 or 7 miles without the gas engine, far less than what GM is promising with the Volt. But Toyota does plan to leverage its reputation for reliability. "Our plug-in will be excuse free," Reinert insists. "It will be able to meet a 150,000-mile warranty without being subsidized."
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Stuart Isett for The New York Times Nick Damianidis, an owner of Olympia Pizza and Pasta in Arlington, Wash., has had oil stolen. The man was caught before he could slip away. In his truck, the police found 2,500 gallons of used fryer grease, indicating that the Burger King had not been his first fast-food craving of the day.
Rising inflation in the world's largest economy sparked some worries about the knock-on effect in Asia, but evidence so far has been mixed.

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But suspicion isn't the same as substantiation. To date, no one has pointed to particular examples of hoarding. CFTC experts testified that market forces are driving prices. The agency says it's working on a response to Bingaman's letter.What can be corroborated is vastly increased trading levels as hedge funds, investment banks, pension funds, and other professional investors have poured money into oil and other commodities, seeking a hedge against inflation and alternatives to a shaky stock market. In the past five years investment in index funds tied to commodities has grown from $13 billion to $260 billion. More than 630 energy hedge funds are placing bets, up from just 180 in 2004, according to Peter C. Fusaro, founder of the Energy Hedge Fund Center, a trading information Web site.
The IEA, in a report issued last week, estimated the world would have to construct 32 new nuclear power plants each year from now until 2050 as part of an effort to cut global greenhouse gas emissions by 50 percent. "I don't think it's an unreasonable forecast or estimate," U.S. Energy Secretary Samuel Bodman said of the IEA study. "I think we're really on the verge of a very substantial increase in the number of nuclear power plants."
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The cycloalkanes, also known as napthenes, are saturated hydrocarbons which have one or more carbon rings to which hydrogen atoms are attached according to the formula CnH2n. Cycloalkanes have similar properties to alkanes but have higher boiling points.( signal oil gas company)
In other Nymex trading, heating oil futures fell 2.27 cents to $3.6440 a gallon while gasoline prices declined 2.72 cents to $3.3210 a gallon. Natural gas futures were up 11.4 cents to $11.817 per 1,000 cubic feet.( signal oil gas company)

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Articles about signal oil gas company => "If the CFTC is going to be looking into the question of whether institutional investors are responsible for the high price of oil, they are going to find that the answer is no. There are plenty of good reasons the price of oil is rising that have nothing to do with institutional investors."
Articles about signal oil gas company => Why are the majors going to such trouble? As the cliché says, the low-hanging fruit already has been picked. Access to the world’s rich fields is dwindling for the Western oil powers. Stagnant global output is fanning supply fears –- is "peak oil" approaching? -– and state-controlled companies overseas have a lock on the majority of the remaining assets. Consider that in the most recent quarter, maturing wells and confiscation in Venezuela factored into a 10% decline in production at Exxon Mobil. For investors, that was an oil shock of a different kind.
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Healy Biodiesel, a company in Sedgwick, Kan., says it offers a top-quality fuel made from local cooking oils.

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Traders also were unnerved by remarks Friday from an Israeli Cabinet minister who was quoted as saying his country would attack Iran if it doesn't abandon its nuclear program. Transportation Minister Shaul Mofaz said Iranian President Mahmoud Ahmadinejad "will disappear before Israel does," the Yediot Ahronot daily reported.
A Nigerian militant group said it had attacked an oil pipeline run by Royal Dutch Shell in the key Niger Delta, killing 11 soldiers in the operation.
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"Tropical storm Arthur, the first of this season, gave more support to the market," said a research note by JBC Energy in Vienna, Austria.( Info about signal oil gas)
"We are currently experiencing the bursting of a housing bubble and, at the same time, a rise in oil and other commodities which has some of the earmarks of a bubble," Soros said in prepared testimony before the U.S. Senate. But he added, "a crash in oil markets is not imminent."( Info about signal oil gas)

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signal oil gas news => Lawmakers in Congress have been pressing regulators to crack down on manipulation, as politicians seek to demonstrate ahead of the fall elections that they are responding to soaring gasoline prices.
signal oil gas news => Mr. MacGillivray says the broad category includes some "smoke and mirrors" products, but it also includes many that improve engine efficiency, such as certain high-performance air-intake and exhaust systems. These upgrades, ranging from improved mufflers to entire exhaust systems, can cost $1,000 or more, and they require more time and skill to install than the products covered in the EPA and FTC reports.

Just Another Fact of Life, Gradually, though, the U.S. economy shows signs of doing what the textbooks predict it will, namely adjusting to higher oil prices. Airlines are starting to cut routes and raise fares, which is likely to reduce fuel use by simply discouraging air travel. With diesel even pricier than gasoline, some truckers are parking their rigs. Dan Little, president of Little & Little Trucking in Carrollton, Mo., hasn't driven since March and says he's spending his time trying to organize protests against the high price of diesel.
Increase oil output. Gordon Brown has called on OPEC to open the taps. "There's no sign that OPEC is willing to do that," says Mr. Lee. "And there's no company operating in the North Sea that would be producing below capacity with this level of oil prices."There are no easy answers, but failure to act will likely unleash more angry protests. French fishermen shot flares Thursday at police while farmers blocked oil terminals. In Britain, Mr. Carroll says truck drivers are ready to block refineries, causing gas shortages. "I'm committed to lawful protest, but some firms don't see the wider picture and we'll be going back to 2000 when you saw people outside oil refineries."

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"Because of the limited jurisdiction of the CFTC and the growth of offshore futures and derivatives markets, oil executives believe the moves are unlikely to result in financial firms being displaced as the major participants in global crude oil and products' markets," Kloza wrote in a note to clients.
Goldman Sachs, the most active investment bank in energy markets and one of the first to point to triple-digit oil more than two years ago -- a once unthinkable level -- said last month oil could shoot up to $200 within the next two years as part of a "super spike."

The vast majority of oil that has been produced by the earth has long ago escaped to the surface and been biodegraded by oil-eating bacteria. Oil companies are looking for the small fraction that has been trapped by this rare combination of circumstances. Oil sands are reservoirs of partially biodegraded oil still in the process of escaping, but contain so much migrating oil that, although most of it has escaped, vast amounts are still present—more than can be found in conventional oil reservoirs.( Articles about signal oil and gas profile)
Of course, drivers in many parts of the country have already been paying well above that price for some time. California has seen some of the highest prices; a gallon there now averages $4.436 a gallon, the most in the country. Missourians are paying the least at the pump, with a gallon in the Show-Me State selling for a relatively cheap $3.802 a gallon.( Articles about signal oil and gas profile)

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signal oil profile => India was also expected to raise fuel prices. The head of the International Energy Agency (IEA) told Reuters on Monday that world oil demand was shrinking more quickly than first thought and the IEA might cut its demand growth forecasts further.
signal oil profile => "Index speculators provide no benefit to the futures markets and they inflict a tremendous cost upon society," Masters said, according to a copy of his testimony.

Bangor-based Webber Energy Fuels, which operates across Maine and parts of New Hampshire, has been selling fixed-price programs at $4.70 to $4.80 a gallon for next winter, said President Mike Shea. Last year at this time, the price was $2.50 to $2.60.
In Charlotte, N.C., gasoline at nearly $4 a gallon is cracking "the survivors," as credit counselor Bruce G. Hamlett calls them. They're the people who played by the rules and kept up their mortgage and utility payments even as neighbors gave up and moved away, leaving empty homes. Now, crazy prices at the pump are pushing even these survivors over the edge. "They're asking, 'Do I put gas in my car or do I pay this utility bill or do I pay the mortgage?'" says Hamlett, director of economic independence for Charlotte's United Family Services. "It's getting to the point where it's an impossible choice."

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Failing Americans, The Senate committee also heard testimony from a consumer advocate who said U.S. regulators are failing Americans by not properly regulating energy markets. Minnesota Senator Amy Klobuchar said the U.S. spends $600,000 per minute on foreign oil. ``I want to follow the money and figure out how American consumers are getting ripped off,'' she said. ``We need a cop on the beat. We also need a prosecutor on the beat.''
Biodiesel is derived by processing vegetable oil or animal fat with alcohol. It is increasingly available around the country, but it is expensive. With the right kind of conversion kit (easily found on the Internet) anyone can turn discarded cooking oil into a usable engine fuel that can burn on its own, or as a cheap additive to regular diesel.

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