Monday, July 12, 2010

The Latest on the Oil Spill


The Latest on the Oil Spill


BP is discussing selling $10 billion worth of assets, including a stake in an Alaska oil field, to the Apache Corporation, which is based in Texas, a person briefed on the talks said Sunday. The potential deal was first reported by The Sunday Times of London, which also reported that the ExxonMobil Corporation was considering making a bid for BP. BP had said it planned to raise $10 billion this year by selling assets.

A Change in Command on the Scene

Adm. Thad W. Allen of the Coast Guard has announced that Rear Adm. Paul Zukunft will relieve Rear Adm. James Watson as the federal on-scene coordinator for the oil spill response on Monday. Admiral Zukunft, who has been in the region for several weeks overseeing strategic planning while preparing to assume the coordinator job, is the Coast Guard’s assistant commandant for marine safety, security and stewardship. In that role he is responsible for developing national marine safety, security and environmental protection doctrine, policy and regulations. “I commend Admiral Watson’s job as the federal on-scene coordinator, and he has been instrumental to key decisions in the oil collection process,” Admiral Allen said in a statement. “As he returns to Atlantic area to ensure the Coast Guard’s long-term ability to support this operation and others, I am confident that Admiral Zukunft will continue the efforts to ensure BP secures the well completely while operationally sustaining this historic response.”

The original topic : black gold lifeline

Baby animals in oil spill face uncertain future



FORT JACKSON, La. — The smallest victims are the biggest challenge for crews rescuing birds fouled with oil from the Gulf of Mexico spill.

There's no way to know how many chicks have been killed by the oil, or starved because their parents were rescued or died struggling in a slick.

"There are plenty of oiled babies out there," said Rebecca Dmytryk of the International Bird Rescue Research Center, one of the groups working to clean oiled animals.

The lucky ones end up in a cleaning center at Fort Jackson, a pre-Civil War historic site on the Mississippi River delta south of New Orleans.

Pelican chicks often come in cold because oil has matted down the fluffy down that's meant to keep them warm. They must be warmed quickly just to survive long enough to be cleaned. And the youngest must be taught to eat.

"They only know their parents regurgitating food into their mouths. They don't know how to pick stuff up," said Dmytryk, whose organization is working with Tri-State Bird Rescue, a company hired by BP to coordinate animal rescue and cleaning in Louisiana, Mississippi, Alabama and Florida.

That means tube feeding three times a day. Others, a bit older and accustomed to taking fish from a parent's throat, must be hand-fed until they can eat fish from a bowl.

Adults can be checked a few times a day, but babies needed two staffers' full-time attention to be sure they are eating and are warm.

Many adults and juvenile pelicans get coated with heavy oil diving for fish. That doesn't happen with the chicks, though they may wade into oily puddles or get smeared by oil from their parents' feathers.

In general, rescuers don't go into nesting colonies, said Mike Carloss, a Louisiana Department of Wildlife and Fisheries biologist. He said most rescued chicks were near shorelines or were on nests so low that oil washed onto them.

Lightly oiled chicks will lose the oil when they shed their down feathers, he said. "We've seen a lot of those birds in those stages make it. A lot of them are fledging now. It gives you hope that is the right thing to do."

Nearly 60 pelican chicks and more than 600 adults were brought to Fort Jackson in June after oil washed onto a rookery on Queen Bess and other nearby islands in coastal Louisiana.

They're among more than 1,000 oiled birds and more than 100 oiled sea turtles rescued since the BP-leased rig Deepwater Horizon exploded April 20, killing 11 workers. About three-quarters of the birds and all but a handful of turtles have been cleaned in Louisiana.

All but two of the sea turtles — a 150-pound oiled loggerhead dubbed Big Mama and an 85-pound loggerhead that was sick but free of oil — are juveniles, ranging from saucer- to dinner-plate size.

Doses of fluids, antibiotics and a mix of cod-liver oil and mayonnaise used to help break up the oil they've swallowed are administered based on the animal's weight. But the basic treatment is the same.

"The difference is it takes five people to lift Big Mama and her sister. It only takes one person to lift the little guys," said Michele Kelley, Louisiana's sea turtle and marine mammal stranding coordinator.

Baby turtles leave their sandy nests and head straight for the sea knowing everything a turtle needs to know.

Chicks need far more care.

Keeping them warm can be the biggest challenge, and tern chicks are among the hardest to keep alive because they're so small, said IBRRC staffer Mark Russell.

The birds lose body heat through their skin, and smaller animals have more skin in proportion to their size than larger creatures. Some of the tern chicks are smaller than a tennis ball.

The chicks also tend to be dehydrated and malnourished.

"If they're dehydrated, they don't want to eat because they feel sick," Russell said. And they're so small that it's hard to keep a tube down their throats to give water and liquid food.

In the week he'd been in Louisiana, he knew of two or three tern chicks that died, Russell said Friday.

Once a chick is eating on its own, staff have as little contact with it as possible.

"We don't want to be raising what is commonly referred to as a pier rat," said Wendy Fox, director of Pelican Harbor Seabird Station, the Miami rehabilitation center where the pelican chicks were moved Saturday.

The babies will be housed next to adult "role models," and eventually with adults, Fox said. Their pens also have pools deep enough to dive for fish. Pelicans take five to six months to reach independence.

At Fort Jackson, one of the youngsters perched alongside a pool and flapped its wings energetically.

"See that?" Holcomb said. "He's almost ready to learn to fly!"

The original topic : black gold lifeline

World oil prices drop


NEW YORK—World oil prices sank under $75 per barrel Monday, as traders cashed in gains and awaited a slew of economic data and the start of the US corporate earnings season.

New York's main contract, light sweet crude for delivery in August, fell by $1.14 to end the day at $74.95 a barrel.

In London, Brent North Sea crude for August slid 1.05 cents to settle at $74.37 a barrel.

"We are worried again about the economy," said Bart Melek of BMO Capital Markets, citing concerns that US retail sales will slow down.

"Investors continue to worry about Europe fiscal position, so that helped the dollar... a stronger dollar plays against commodities."

Statistics on US retail sales are expected on Wednesday, with most analysts predicting a slightly worse snapshot of the sector.

It was the first fall in oil prices after three sessions that saw prices rise a total of six percent.

"Crude oil prices gave back some of the recent gains and retreated... as investors remained cautious and were prompted to some profit-taking ahead of the US corporate earnings season," said Sucden analyst Myrto Sokou.

Aluminum giant Alcoa unofficially kicks off the quarterly earnings season after the US stock markets close Monday. Results are expected in the coming days from Google, General Electric, Citigroup, Bank of America, Intel and JPMorgan Chase.

Oil had crept above $76 in early Asian deals on Monday as buoyant stock markets and expectations of healthy corporate earnings in the United States pushed up prices.

However, traders opted to cash in gains as the market was "getting ahead of itself," agreed Victor Shum, an analyst with energy consultancy Purvin and Gertz.

"It's primarily people selling to lock in profits... Oil is getting a little too strong and over-bought and so there's selling among traders."

Shum said that prices would probably hover around $75 in the near term.

"The question is whether there is enough confidence in the market for oil prices to hold above $75," he told AFP.

"I think that given the uneven economic recovery around the world, pricing in the mid-$70 is probably a more stable value."

The original topic : black gold lifeline

‘Give subsidy to schools, hospitals, not oil firms’




The government should use its money on building schools and hospitals than subsidizing oil companies, which were making huge profits because of grant, Planning Commission Deputy Chairman Montek Singh Ahluwalia has said.

“The profits shown by the oil companies are largely due to subsidies. We are not supposed to be subsidising the oil companies ... we should be paying for schools, education, hospitals and so on,” Mr. Ahluwalia said in an interview to CNN-IBN.

Left parties, which organised the Bharat bandh on July 5 against hike in petrol and diesel rates, had said the oil marketing companies were making huge profits, but the government was still talking about under-recoveries. The Indian Oil Corporation had said it made a profit of Rs. 10,220 crore in 2009-10.

“I think the Left has got it wrong that these companies are making huge profits. These profits reflect the fact that a large subsidy is being paid to them,” Mr. Ahluwalia said.

Tax burden
He agreed that there was significant tax burden on petrol and diesel. “You can eliminate a tax burden without recouping the revenue elsewhere. You could legitimately say don't tax petroleum, raise the same revenue by taxing everything else. Would anyone want that?” he said.

For LPG and kerosene subsidy, the government had to make up from petrol. “In the entire structure of petroleum prices, we are giving much lower prices for a large number of other items, so some built-in cross-subsidisation has to take place,” he said.

“Somebody has got to pay for it [cheaper kerosene and LPG] — either it would be paid out of general revenues or it would be paid from petrol. I think it is better if it is paid from petrol.”

In any case, the government wanted people to move away from the private transport to public transport.

A government, he said, could not be run only by those who knew how to lay roads, rebuffing Union Transport Minister Kamal Nath's charge that the Planning Commission was an “armchair adviser.”

“My view is that you cannot run a government only with people who know how to build roads. You have to give them a set of rules ...”

On July 5, Mr. Nath said the Planning Commission was oblivious to the ground realities of laying roads. “Producing a book is one thing and producing a road is another thing,” he had said at a Planning Commission programme.

While Mr. Ahluwalia agreed that “building roads is certainly different from writing guidelines, we are not an implementing body. Equally, it does not mean that you [Ministries] don't need advice. I mean accountants are not people who build roads but you cannot build roads without having decent accounts.”

Different arms of the government played different roles, he pointed out.

Mr. Ahluwalia also rebutted Mr. Nath's charge that the Commission was not allowing his Ministry to achieve the 20 km-a-day road-laying target. “I don't think that is correct,” he said. When targets were set, “you have to relate that target to the funding that is available.”

One of the principal roles of the Planning Commission was to scale down the demands of the Ministries, which were typically 100 per cent more than the money available, he said.

On Mr. Nath's remarks that the world class terminal at the Delhi airport would not have been possible, had the Planning Commission been involved in it, Mr. Ahluwalia said the Commission had a role, but was limited to selection of the operator (GMR Group).

“It was a public-private-partnership and the government's involvement was prior to the selection of the partner. It is absolutely true that once selected we didn't get involved.”

The original topic : black gold lifeline

Is Alternative Energy Worth Investing In?


Oil prices are spiralling to new records just about each day. In addition, oil is mostly produced in politically unstable parts of the world; this caused problems in the 1990's and may do so again. Consequently, we may never see oil prices come down or even stabilize.Because of escalating oil prices, many ventures are being formed to find other ways of creating energy that is friendly to the environment as well as cheap. Alternative energy is becoming the new wave to lessen the demand for oil while helping our environment.Alternative energy has always existed, but it was never taken as seriously as it is now that oil prices are so exhorbitant.Sizeable investments are being made in this up and coming industry. There are risks as with any investment, but investors feel it is better to invest in a rising star than a dead dog.
The United States is not yet fully committed to alternative energy. Most of the energy to power America has come from petroleum sources. Natural gas is second in use for power, then coal and nuclear power. Only a small portion of energy is created by alternative energy at this time.The problem is to make sure there is ample demand to make investments in alternative energy pay off. Since power plants in existance today use petroleum, gas, coal or nuclear energy, we have to ask if these sources are sufficient to continue to power our cities. But as the population grows, demand for power grows along with it.
The resources we currently use are depleting and they also cause the problem of pollution. Soon, we may not have enough power to continue using it.The need to find different ways to power are world is great, and alternative energy is the most likely solution.There are a lot of advantages to alternative energy. It is clean and safe since it uses natural sources. It does not produce pollutive gases as oil does. After an alternative power plant is constructed, the energy produced is practically free.
The sources of power for these plants is always available.All investments involve risk, and alternative energy is no exception. It is a new field and may not be successful. It seems to be clean and safe, but there is no guarantee that someday it may show some damage to the environment. Even though it is a mega million dollar industry, it is not yet fully established as the right alternative to traditional energy. At this point, fuel still seems to be the most efficient power source.Even though there may be pros and cons, the basic point is that alternatives have to be found, and alternative energy may turn out to be the best alternative.
The original topic : black gold lifeline

Gulfsands Petroleum partner commences exploration drilling at Lambouka oil prospect

Gulfsands Petroleum partner commences exploration drilling at Lambouka oil prospect



Gulfsands Petroleum (LON: GPX), the oil and gas company with assets in Iraq, Syria and Gulf of Mexico, has said that operator of the Kerkouane Exploration Licence offshore Tunisia has commenced drilling operations on the Lambouka-1 well on the Lambouka prospect in the Sicily Channel.
The Miocene aged Birsa Formation and the Cretaceous aged Abiod Formation are the primary objectives for the well. ADX Energy has estimated the mean prospective resource for the Lambouka Prospect at 270 million barrels oil equivalent.
Drilling of the Lambouka-1 well - Gulfsands’ first exploration well in Tunisia - is being carried out by the Atwood Southern Cross semi-submersible drilling rig and it is expected to take approximately 35 days to drill and evaluate. The company will drill an onshore well on the Chorbane license in Q4 2010 to earn a 40% participating interest.
Back in May, ADX Energy (ASX:ADX) - when it was still called AuDAX Resources - entered into a farm out agreement with Gulfsands Petroleum over the two licenses, also known as the Sicily Channel Exploration Permits. This deal concluded the formal documentation required by AuDAX for the funding of the Lambouka -1 exploration well.
Gulfsands is acquiring a 30% participating interest in the Kerkouane Licence and the adjacent Pantelleria Permit which lies in the Sicily Channel in Italian waters. In order to earn the interest, the company will have to pay varying but “promoted” proportions of the costs of the 3D seismic programme recently acquired and of the Lambouka well.
Gulfsands has been the subject of bid-speculation since two major Indian oil producers made an unsolicited informal approach for the company, offering 315p per share. The approach was deemed, by Gulfsands, as wholly inadequate as it believed it materially undervalued the company. Later, on the 27 April 2010, the company rebuffed a second unchanged offer.Later, in early May, Oil India and Indian Oil Corp confirmed they do not intend to make an offer to acquire Gulfsands, days after the UK Takeover Panel issued a ‘put-up or shut-up’ ruling.
Gulfsands increased revenues by 57% to US$84.4 million in 2009, turning a maiden net profit of US$27.8 million compared to a loss of US$5.4 million in the previous year.


The original topic : black gold lifeline

Eating gold fish





$83.50 (WLL)

Whiting Petroleum (NYSE:WLL) is currently trading 3.90% below its April 20th low of $83.50. Investors are looking to see if the shares can regain the April 20th 'Spill in the Gulf' level, which may act as long-term resistance.In the past 52-weeks, shares of Whiting Petroleum have traded between a low of $29.77 and a high of $93.22 and are now at $80.22, which is 169.50% above that low price.SmarTrend is bearish on shares of Whiting Petroleum and our subscribers were alerted to Sell on June 29, 2010 at $80.59. The stock has fallen 0.5% since the alert was issued.
The original topic : black gold lifeline