How Oil Price Affects Us

What's new with the energy markets? everybody is expecting a positive outlook from this market but it seemed that the expectation remained negative. what more could this oil price give to us?

Evidently, due to the unstable energy markets, some stikes were being posed by some oil workers. They too, are affected with the current trend in oil markets. This is not only happened in Britain, where major oil refinery shut down, stikes is almost everywhere, where oil is one of the most serious problems.


We cannot deny the fact that oil has a pivotal role in our life. Oil alone is our life. This makes us mad when our government prefers to privatize oil energy sector, especially when times that the government itself is not already counting money from it. Privatization for them is the answer, so that, more private entities could invest in their countries. But it would only create fears and troubles, because protesters would not allow it.


However, we can still make a difference out of it. If we would only unite for the common good. Focusing on alternative energy can be one of the solutions. Though, it requires funds, new researches and studies, still, in a futuristic view, nations that would try alternative energy could prossibly be out of the problems brought by the current oil situations.

more oil related updates...

Oil Rises $118 Above on Nigeria Pipiline Attack

MEND or the Movement of the Emancipation of the Niger Delta has once again attack one of the pipeline of Nigeria oil reserve, making it oil price rose to near $119 per barrel. What was really the purpose of MEND? Are they doing this in order to subside the alarming oil price in the oil markets?



"Our candid advice to the oil majors is that they should not waste their time repairing any lines as we will continue to sabotage them," the Movement for the Emancipation of the Niger Delta (MEND) said in an emailed statement.

Shell has been forced to shut 169,000 bpd of Bonny Light crude oil output after a pipeline attack there a week ago.

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A Good News on Still Climbing Oil Price

What the good news? The still escalating oil price is definitely not a good news. As of today, oil price is still at $118 per barrel but the sight of going $120 next month paused. Why? Here comes the good news: the US inventories of oil are said to have a positive response. Find out why....


But U.S. Energy Secretary Sam Bodman has rejected both suggestions, saying the tax revenue is needed to help build and repair U.S. highways and bridges and that the nation needs to build its emergency oil stockpile so it can replace 90 days of crude imports if necessary. The reserve now has only about a 55-day supply now.

Americans spent $100 billion on gasoline in the first quarter of this year, according to a recent survey done for the Consumer Federation of America -- up from $40 billion in the same quarter of 2002. The works out to an increase of about $600 per household, the group said.

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JIC Sees Investment Returns in 3 Alternative Energy Projects

The alarming oil price increase has ushered some of the oil firms to try their luck in alternative energy ventures. For instance, the J.I.C Technolgy Company Ltd., which is to be renamed as Hong Kong Energy Holdings Limited, has initiated to venture on three alternative energy projects. Find out how they manage to venture in this projects...

About J.I.C. Technology Company Limited (stock code: 987)

In March 2008, 74.99% interest of J.I.C. Technology Company Limited was acquired by HKC (Holdings) Limited. Following that, all HKC (HOLDINGS)'s new investment in the alternative energy business will be conducted through JIC. The Company is to be renamed as Hong Kong Energy (Holdings) Limited. For more information, please visit website: http://www.hkenergy.com.hk .

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Oil Price Update: Oil closes to $119 a barrel

Oil prices are surging again to near 119 a barrel. today, oil price is at $118 above and expected to increase any time today due to the many causes behind its increase.....



Oil producers in Rome for the International Energy Forum said they can do nothing to halt oil's rally and the world might have to live with even higher prices if it wants supplies for the future.

U.S. President George W. Bush on Tuesday said he was concerned about record-high crude oil and gasoline prices, and said the United States needs to tap an Alaskan wildlife refuge to boost supply.

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Oil Price Watch: Oil Rose Above $117 A Barrel

As expected, oil prices have never been declined from its high price, yet it has been increasing as the US markets remained at a gloomy situation. Recently, just this day, oil is recorded at $117 above per barrel.

Also over the weekend, Iran's hard-line President Mahmoud Ahmadinejad was quoted Saturday as saying crude oil prices at $115 a barrel are too low, and that oil must "discover its real value."

"The oil price of $115 a barrel in today's global markets is a deceiving figure. Oil is a strategic commodity that needs to discover its real value," the Web site of Iran's state-run television quoted Ahmadinejad as saying.

The Iranian president made the remarks during a visit to an oil and gas exhibition in Tehran late Friday.

In other Nymex trading, heating oil futures were flat at $3.2923 a gallon while gasoline prices fell 0.18 cent to $2.9875 a gallon. Natural gas futures rose 1.3 cent to $10.60 per 1,000 cubic feet.

more on oil price...

Refocus on Healthy Fundamentals, says OPEC to Oil Market

Refocus on healthy fundamentals. This was the OPEC request to oil market as the latter wanted to fix the volatile global oil market.




"It is a basic substitution of rising assets for those in decline," OPEC said of the sharp slide in the dollar, which has spurred many investors into the oil market. "This has significantly influenced the short-term oil price, and this dynamic has also lifted the prices of other commodities." Globally, crude oil is traded in dollars.


"OPEC appreciates how financial markets work, but it is important to keep an eye on the impacts to the oil market of this type of speculation, as it can create a climate of nervousness and uncertainty," the editorial said.

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Alternative Energy Firm buys Interest of Sterling Energy System

Ireland's alternative energy company agreed tp buy a $100 million interest of the Stirling Energy System, a solar-energy comany in Phoenix. The acquisition is predicted to be in preparation for the development of alternative energy as the world's resolution for the oil crisis in the global market.





n alternative-energy company in Ireland has agreed to pay $100 million for a controlling interest in Stirling Energy Systems Inc., a developing solar-energy company in Phoenix.

The deal could add 100 people to Stirling Energy's current staff of about 40 in Phoenix, said Ian Simington, group-development director for Dublin-based NTR plc.

"It will change things hugely for Stirling because now they have funding to accelerate every single aspect of what they are doing," Simington said.
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The investment from NTR will help fund two massive solar-thermal power plants in Southern California that were announced in 2005 but are yet to open.

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Energy Ranks Up Market

Energy market in Australia has helped it share escalates positively due to positive information from US regional banks. Despite high oil prices, Australia share has gain points yesterday afternoon.



Other highlights included strong production numbers from Oxiana this morning, which buoyed the resources sector despite base metals prices being weaker overnight.

''Also, Rio Tinto's quarterly production was as expected, with aluminium production up, boosted by the first full quarter of production from the Alcan acquisition assets." said Albert Turner of Global Options.

Among energy stocks, Woodside Petroleum gained $2.53, or 4.54%, to $58.30, Oil Search firmed 6 cents to $5.05 but Santos bucked the trend, dropping 8 cents to $15.52.

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Energy Roundup: Updates on Energy market

The energy activity has still been creating tensions among energy investors, especially, among small consumers. Here are some of the world's leading nations, highlighting its energy activities, so to keep you update of the oil industry.


The Organization of Petroleum Exporting Countries announced that despite record high oil prices causing a decrease in demand, it will not change its production rate before September.

The weakening U.S. dollar is the primary factor driving crude prices, said OPEC President Chakib Khelil, who is Algeria's oil minister.

Some nations have called on OPEC to increase oil production to ease high prices, but member countries have not budged. Khelil said he and other OPEC leaders expect demand to increase again during the summer months.

more oil updates...

ON HIGH OIL PRICE: Demad for Natural Gas May turn Global

As of today, there are reports that oil price rises at $112 per barrel and will continue rising. Reasons for this escalating oil prices have been laid down. In fact, Oil investors have there own reasons why they are pressure to make oil price high. Because of the unstoppable rising oil price, studies are being conducted to shift on the use of natural gas. If this would materialize, natural gas might be used globally, as replacements of crude oil and other natural energy gas.

Consequently, the use of gas has been growing significantly faster than the use of oil, although not as fast as the use of coal, which is also reaching record proportions.

Gas has been the fuel of choice for investment in power generation over the past two decades in the developed world and in most emerging economies, also. Modern combined-cycle gas turbine plants are cheap and quick to build and create much less pollution than coal-fired electricity.

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SA Oil Minister Abhors Biofuels, Okays Solar Energy

Solar energy is one of the best and clean energy alternatives, according to Saudi Arabia's oil minister. On the contrary, he claimed that biofuels will not increase energy security, nor help protect the global environment. Ali Al Naimi is firmed that biofuels are not the right solution to the increasing demand of oil supply.

The rise in biofuel use was largely due to government subsidies, high import taxes and financial favoritism vis-a vis others, he added.

"That's why we have to look beyond biofuels... and concentrate instead on truly renewable sources of energy," he said, adding that solar power was perhaps the best clean energy source available in all parts of the world.

"It is abundant, clean and available to all," he said.

news details....

Kazakhstan, the next Energy Hub?

Kazakhstan is aiming to be the nextmajor global technical oil training center. This pronouncement was being backed up by the Gulf Finance House, in collaboration with the Government of Kazakhstan and PFC Energy International, yesterday announced details of its plans for the latest project in its Energy City series.

Following the presentation, a a memorandum of understanding was signed.

Located in Aktau on the shore of Kazakhstan's Caspian Sea, CEH will represent the latest in a series of energy focused business clusters that GFH has planned across the Middle

It is expected that the hub would play a significant role in supporting the government's plans to double oil production and triple natural gas output by 2015.

To build on these objectives, the hub will develop a full service economic and business centre catering to every commercial, technical and human resource need of the oil and gas industry operating in Kazakhstan, and ultimately, in the entire Caspian region.

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Oil Price Gushes on US Reports of Inventory Backslide

At present trading, US crude oil price landed on $111 a barrel. In an instant, oil price has upswinged high after the US government released a reports of declining oil supplies. What's next? A $200 a barrel crude oil?

"The surprise draw on crude was due to the big drop in imports. If that is due to the fog in the Houston Ship Channel, then next week we may see an increase," said Mark Waggoner, president of Excel Futures in Huntington Beach, California.

Commercial gasoline supplies, meanwhile, fell 3.4 million barrels to 221.3 million barrels.

Still, that left them more than 10 percent over year-ago levels, according to the data.

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Oil Price Trades at $109, OPEC Blames Dollars...

Oil price remained closely at $109 a barrel but would definitely continue leaping in the days to come as the demand for oil is still jumping, despite OPEC's announcements that the world oil market is well supplied. Who will to be blamed for the oil price increase?OPEC claimed it was the US dollar fault......Refiners and some oil traders are being hurt by this oil trend.




Jonathan Kornafel, a director for Asia at Hudson Capital Energy in Singapore, said that “Investment flows have been a factor in the volatility but I can't believe the new investment has taken us to $100 oil” further adding, “The fundamentals are what have gotten us here.”

According to Citigroup analysts Alan Heap and Alex Tonks, Global investments in commodities increased to $400 billion during the first three months of the year 2008. This was told in a note to clients.


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Acquisition battle boosted British Energy power price

London trading has report that the British Energy group PLc. rose to a record. The reason behind was the rivalry between Electicite de France SA and RWE AG, that both showed interest in purchasing the UK's biggest energy power plant.

British Energy touched 754.50 pence, the highest since the shares began trading in January 2005. The stock was at 727.50 pence, up 2.3 percent, as of 1:46 p.m., giving it a market value of 7.5 billion pounds ($14.9 billion). The French and German utilities are in talks with Centrica about a joint bid for British Energy, the Financial Times reported today, without citing sources.

Prime Minister Gordon Brown supports nuclear power to replace reactors scheduled for closure and coal-fired plants whose emissions cause global warming. British Energy owns sites where new units may be built, and has met with more than 10 companies to choose possible partners. The power producer said March 17 it was in talks that could lead to a merger or takeover.

``The foreign companies have deeper pockets and it might be in Centrica's best interests to team up with them,'' Tina Cook, an analyst at Charles Stanley, said today in a phone interview.

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High oil prices can reflicate rampant speculations, US Senators say

More aggressive financial market regulationwas being pushed by two US senatos who's minding the Energy and Natural Resources Committee, as they claimed they could not estimate speculators' impacts on crude oil high prices. Democrats Senators Byron Dorgan and Maria Cantwell said the energy prices are having enormous consequences.

When Cantwell asked three energy analysts who testified if they predicted a year ago that oil prices would exceed $100/bbl, they all said they did not and declined to forecast where prices would be 6 months from now. "You're basically saying this is all over the map and you don't know what the price will be. If we're going to protect our economy, we need to close loopholes that keep this activity in the dark," she said.

Speaking with reporters outside the hearing, the senators separately said that they will try to increase regulatory authority and funding at the CFTC, Federal Trade Commission, and Securities and Exchange Commission as part of the three agencies' fiscal 2009 appropriations.

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CENTRICA: European gas firms push up prices in Britain

Centrica Energy disclosed what have caused surging costs of oil in Great Britain. Centrica claimed that some European oil companies are buying up supply during summer but not selling it back during winter, making it costly comes the time when oil is much needed in these countries. was the commentary true?



Continental European companies are buying up UK North Sea gas in the summer, when Britain is a net gas exporter, to refill storage capacity depleted in winter. But according to Centrica, gas flows back into Britain from continental Europe are much lower during the winter, when Britain is a net importer.

Centrica, parent company of Britain's biggest residential energy supplier, British Gas, calculates the volume of gas that flowed from the UK to Europe through the Bacton-Zeebrugge interconnector - one of the key gas pipelines into the UK - over the past year was five times the flow in the opposite direction.

Continental Europe has much more gas storage than Britain, which has traditionally relied on North Sea production to meet spikes in demand. France and Germany, for example, can meet about one fifth of demand from storage compared with about 5% in the UK.

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Direct Energy Services agrees to buy Great Plain's Strategic Energy

Toronto-based Direct Energy Services, a unit of Centrica Plc. has recently approved to purchase the Strategic energy LLC, a unit of UK-based Great Plains Energy Inc. The agreement which is expected to be a closed deal on June, Strategic will be paid by direct Energy for $300 million in a debt-freetransaction, which means, in cash to cash basis.

Pittsburgh-based Strategic Energy contributed $38.4 million, or 45 cents a share, in 2007 earnings for Kansas City-based Great Plains Energy (NYSE: GXP). Strategic Energy had 2007 revenue of $1.97 billion, up 29 percent from 2006.

Great Plains Energy's $1.7 billion purchase of Kansas City-based Aquila Inc. (NYSE: ILA) is pending.

Great Plains Chairman and CEO Mike Chesser said in a separate release that the company wants to focus on its regulated electric business.

"We will capture the value we have built over the past nine years in Strategic Energy and deploy it in our regulated electric business," Chesser said.

Great Plains' focus now, Chesser said, is on building value by completing its purchase of Aquila and integrating the companies, completing the environmental upgrades and construction of its Iatan 2 coal-fired generating plant and developing a new integrated resource plan to meet customers' future needs.

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