Marine

World’s Petrochemical Deposits at End of 2012: Oil Surges, Natural Gas Soars!

News Analysis:  Estimated OIL Surges To 1,668,900,000,000 Barrels; Proven NATURAL GAS soars to approximately 187,000,000,000,000 Cubic Meters!

For the Oil Industry, Per Barrel [Cubic Meter] Costs of Production for ON-LAND Projects, should diminish minimally due to production efficiencies as well as more voluminous equipment purchases at slightly lowers costs.  OCEAN BORNE Projects may be expected to  have incrementally greater costs. This is due to Exploration Drilling and Petrochemical extraction in deeper waters. In waters such as the Arctic Ocean, the severely cold weather will have to be dealt with [at increased costs].

The very increasing discovery and production of oil and natural gas bodes marginally well for Consumers. The increases in supply are greater than those in demand [as judged by World Population Birth Increases]. However, the costs to be borne by the Petrochemical Companies will be passed on to Consumers for the viability of further exploration and production.

The good news for Middle East Nations is that there are yet many decades of oil to be produced in their respective countries. As new technologies are developed for the extraction of oil from mature fields, in the Gulf Countries,  they can expect continued prosperity. New oil discoveries, particularly off-shore, should bode well for them also.

Reference: http://tinyurl.com/ka3xnby

 

 

Bermudans Seek Expanded Exclusive Economic Zone

News Analysis:  The Commercial Value to Bermuda of an additional 150 mile Radius  of Seabed, beyond its present 200 mile Radius, in the Atlantic Ocean could be enormous. This additional area of 350,000 km2 [135,136 mi2] could contain Surface Seabed wealth of Manganese Nodules, Microscopic Gold, and the like.  Additionally, Hydrocarbon Deposits might be extensive if Sub-Surface Seabed Drilling occurs.

Abundant Marine life could further economically benefit Bermudans [in areas physically removed from the aforementioned mining activities].

If Mr. Perinchief prevails in the Legal Arena, thus giving Bermuda this additional physical area, his contribution to the country would be priceless.

Reference: http://www.royalgazette.com/article/20131104/NEWS07/131109924

Spain Appraised of Potential Tsunami Havoc

News Analysis:  The results of Seismic activity in the Atlantic Ocean,  or to a lessen extent in the Mediterranean Sea, causes concern about resultant Water-Energy Damage to the country. The good news is that Spaniards and their Government can take counter-measures presently, to negate future damage. As a point of reference, beyond the tragedy of the tsunami in Indonesia in 2004, one should consider the American “Hurricane Sandy” debacle which took place. Both New Jersey and New York, as well as United States Government officials, were not prepared for it [even though a probability for it existed, due to global weather changes of which they knew]. Subsequent to the event occurring, and up to the present, there has been an abysmal failure of leadership. For example, U.S. Federal Monies, given to support banks in 2008, some of which could  have been set aside for havocs like “Hurricane Sandy”. The lack of “Rainy Day Funds” at the Federal and State level, has now hurt the very citizens the officials vowed to protect. The affected areas still need billions of promised dollars.

Tsunamis AND severe storms must be considered by the Spanish Government so it moves pro-actively to help its citizens. It should not want to copy the  approach conducted by American Federal and State Leaders.

Reference: http://www.spanishnews.es/20111128-spain-high-tsunami-risk/id=3684/

Brazilian 12,000,000,000+/- Barrel Atlantic Ocean Oil Field Auctioned

News Analysis:  A dichotomy may exist between “Rates of Return” vs. “Total Return” on invested capital. For example, a smaller field might give the producer a bigger share of the recurring cash flow, yet be of much shorter duration due to amount of petroleum recoverable.
A large field, like the aforementioned, would give a greater total dollar return due to its volume.  
Of course, in the equation for an oil production company’s prospective bid,  must be added: The on-going anticipated market price of the probable quality and quantity  of the crude over the duration of the contract; The cost of the off-shore drilling rig, labor, insurance, etc. are also important elements.

Reference: http://tinyurl.com/mjv7w2j

Lebanese Discussing Oil Development Contract Authority

News Analysis:  Since the estimated quantity of Eastern Mediterranean oil within the boundaries of Lebanese Waters is so sizable, due diligence is being displayed in the decision-making process of Contract Awarding. The possible economic benefit to the entire country should be vast. Decisions need to be carefully made for best ‘down-stream’ rewards for the People of Lebanon.

Reference: http://tinyurl.com/lvhllvm

If Too Expensive, Build Them Yourselves

News Analysis: Once the ‘Non-Recurring Costs’ [NRC] of establishing a shipyard have been paid for, the ‘Recurring Costs’ [RC] of labor and material, energy, etc. on an individual build should be significantly less than merely purchasing a ‘New Build’ from another Shipyard. Amortized NRC and unit RC amounts should be less than the competition’s price. Since new vessels can be built for others, ‘Learning Curve” efficiencies and bulk material buying can further reduce ship construction costs even further over extended time. If financially able, this is a good methodology for a country.

Reference: http://tinyurl.com/krds4v9