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Deepsea drilling will surely be a sector to put some money in. JF ordered Seadrill's rigs three years ago, and got them at half the price those rigs cost today. Nobody was buying rigs at that time, and I was a bit cautious, but bought anyway Seadrill's shares. I had learned to trust "Den Stora Ulven" with Frontline and Golden Ocean :)
Thanks Milner. I found the WSJ article. The situation is tense, and therefore Europe is building LNG terminals to ship the gas. Middle East and Asia are also investing in LNG, especially Japan. They build the terminals and order LNG carriers. Dubai has ordered 40 vessels, so it will become big business.
As to Golar, I am confident with it. LNG is just coming, and it will take time before LNG shipping will grow substantially, it is in it's infancy yet.
Stock Lobster. Re: Days to cover (Short Interest Ratio) 5.3
Does this mean that shorts in LNG must cover their short NOW in 5 days? What happens if they do not cover?
TIA
Yes, I do read your posts - with great pleasure :) Please write your posts, when you have time, and don't write if you dont have time or feel so. Do not feel "obligated" to serve us. We can manage so and so... :)
Hello Milner. Do you have a link for that WSJ article? I know the EU was planning this southern pipeline to get natural gas from Caucasus directly, and not through Russian territory.
Italy has just completed its Livorno-project, where Golar is a part owner. Golar supplies there one of its FSRU(Floating Storage Regasification Unit) -vessels.
France and Holland/Belgium are building LNG-terminals, just to get natural gas from elsewhere than Russia to avoid troubles.
GM Stuffit. Yes, you DO enlighten a few minds here and there. And the minds do understand that you cannot enlighten the minds 24/7 all the time. Slower periods time and time are perfectly understood - and even needed. Don't worry, and feed us with all the information when you want, and don't feed us when you do not want and take a vacation. Simple, and we readers understand it perfectly well :)
This goes for Lobby, Wildbill, kidstockster, Gwickley etc etc too.
Re: BQI. Note: There's also BQI-WT $1.70 Oilsands Quest WTS
BQI $5.40 Something's Brewing at Oilsands Quest Inc.
by: Seymour Prophet posted on: June 15, 2008 | about stocks: BQI
Recent Happenings
Last week, there was some unusual trading activity in Oilsands Quest Inc. (BQI) and BQI call options, which leads me to believe that something is brewing at BQI. First, on Thursday, the volume and open interest on the BQI Oct $7.50 calls increased significantly, as referenced in the Seeking Alpha article titled "Thursday Options Outlook: XLF, LEH, BUD, CMI, TXN, CHK, KEY, FTO, BQI". Currently, the open interest on those options stands at 10,169 contracts, up significantly from less than 2,000 contracts only a few days ago.
And on Friday, BQI traded up by 13.9%, or $0.66 to $5.40 on trading volume which was significantly higher that normal. Specifically, volume for the day totaled 7.3 million shares, 2.8x the average daily volume of 2.6 million shares.
The Backstory on BQI
A few years ago, the bear case on the stock was that the company's acreage didn't contain meaningful amounts of bitumen and, if it did, the company wouldn't be able to produce it. Since then, the company has drilled 264 wells which have proven that its Axe Lake acreage has 1.3 billion barrels of bitumen. Moreover, the company has drilled 85 other wells and has shot 1,847 km of seismic data, which has led the company to believe that it has a total over 10 billion barrels on its acreage.
The current bear case on BQI is hinged on the assumption that the company cannot produce meaningful amounts of its bitumen, given the geologic characteristics of its acreage. This seems to be the only real concern remaining. However, that concern may soon be eliminated. BQI is currently constructing the 1st phase of its reservoir test program at its Axe Lake project. First steam injection is expected to take place by late summer, the results of which should de-risk the BQI story and eliminate the overhang on the stock.
The short interest in BQI currently stands at 13.1 million shares, which equates to 7.3% of the float and a short interest ratio of 5.4 days. I would expect that, as the test data is released, the short case on BQI could fall apart and that Shorts on the stock will start to cover in a hurry. Perhaps more significant, BQI will likely garner more support from institutional investors, who have been gradually warming up to BQI's story.
Over the last month, institutional ownership has increased to an all-time high of 47%. That figure will likely increase in light of the heavy volume exhibited on Friday and the further de-risking of the BQI story over the remainder of the year. Over the next 6 months, the company is expected by many to secure a joint venture with a Big Oil company. That should provide the company with the capital it requires to continue and/or accelerate development of its acreage.
Perhaps more important, that should make transparent the value which a Big Oil company is willing to ascribe to BQI. With oil prices hovering near record highs, the attractiveness of resource-rich companies like BQI should increase. And it shouldn't be long before it becomes apparent what's brewing at BQI.
Disclosure: Long
This article has 1 comment:
aviator409
Jun 15 09:18 PM
SEC is re-writing rules on counting oil reserves from oil sands. The value will then be able to be placed on BQI books. Should be a good ride.
Aviator409
Is Google Interested in Ormat's Geothermal Technology?
by: Zack Miller posted on: May 22, 2008 | about stocks: GOOG / ORA
As we wrote last week, numerous business and political bigwigs were in Israel for Shimon Peres’s conference celebrating Israel’s 60th birthday. While we sat in on various sessions and working groups, given our bent for Israeli technology, we really enjoyed a session dedicated to the future of the Internet attended by the pioneers of modern media, including Sergey Brin, Google’s (GOOG) founder, and Rupert Murdoch, News Corp (NWS) founder.
It now appears that Brin is getting closer to Israel as he eyes specific deals with leading technology players in fields that might surprise you. Google’s Brin was very busy in Israel touring the country with his parents and fitting in numerous meetings with Israeli entrepreneurs. It looks like the outcomes of the meetings are “heating up” as Google appears close to doing a deal with global leader in geothermal energy and Israel green energy icon, Ormat Technologies (ORA).
According to Haaretz:
Senior Google executives met with their counterparts from Ormat at two alternative energy conferences, including a presentation on geothermal energy. Larry Page, the other co-founder of Google, even visited an Ormat geothermal plant in Desert Peak, Nevada.
This same article says that the goal of the program, as explained by Page, is:
to produce one gigawatt of renewable energy capacity that is cheaper than coal. We are optimistic this can be done in years, not decades.
CNET covered the story and added that:
Executives at Google have been clear that so-called enhanced geothermal is on the list of technologies they see as cost effective, compared with fossil fuel energy. The idea behind enhanced, or engineered, geothermal systems is to inject water underground to enhance the permeability of rock, allowing for the release and capture of more heat. Ormat is working on an enhanced geothermal project organized by the U.S. Department of Energy, which says that these advanced techniques can dramatically increase geothermal potential–by 40 times.
Disclosure: The author’s fund has a position in ORA as of May 21, 2008, and the author and his family own GOOG stock.
http://seekingalpha.com/article/78401-is-google-interested-in-ormat-s-geothermal-technology?source=yahoo
Back to basics! Click the link to see readers' comments.
Geothermal Energy Sources 101
by: George Gorski posted on: May 12, 2008 | about stocks: APA / CEG / CLR / CPN / CVX / DVN / ECA / EOG / GE / HAL / IDA / NGLPF.OB / ORA / PCG / PGTHF.PK / UGTH.OB / WFILF.PK / XOM
Geothermal power plants are an almost pollution free source of electricity. Typically they are installed near shallow subsurface sources of steam and / or hot water characterized by faults, seismic activity, earthquakes and volcanoes.
The source of geothermal power generation is steam at a temperature of ~300 degree C. To access geothermal steam involves drilling a vertical well to the source. A second well is drilled to the lower water level of the steam source. The steam is directed into a steam turbine which in turn generates electricity. The condensed turbine exhaust is re-injected back into the underground reservoir.
Usually there are no special geothermal power plant requirements. Conventional open cycle steam turbines, such as those manufactured by General Electric Company (GE), have been used.
There are essentially three types of geothermal power plants used depending on the source.
The first type known as a Dry Steam Power Plant, receives super heated steam from a very hot rock subsurface. Because of the temperature, there is no condensed water present and the geothermal steam is fed directed into the steam turbines.
Examples of these types of plants are found in northern California and have been in operation by utility companies, such as Pacific Gas & Electric (PCG), since 1960.
The second type known as a Flash Steam Power Plant, pumps hot water from the well into a flash drum where it separates into steam and condensed water. The steam is directed into the turbines and the condensed water re-injected back into the well. Examples of these types of plants are found near San Diego and Bakersfield, California.
The third type known as a Binary Power Plant, does not have enough heat in the pumped hot water. The water is directed through a heat exchanger used to vaporize a secondary fluid which in turn drives the steam turbines.
Geothermal power plants in California account for 5% of the state's electricity. USA generated geothermal power generation accounts for ~40% of total world production.
Calpine Corporation (CPN) of San Diego operates 19 of 21 geothermal plants in California. Other noteworthy geothermal power companies include Constellation Energy Group (CEG), IdaCorp Inc. (IDA), Nevada Geothermal Power Inc. (NGLPF.OB), Ormat Technologies Inc. (ORA), PG&A Corp. (PCG), Polaris Geothermal (PGTHF.PK), Raser Technologies (RZ), Sierra Geothermal Power Corp (SRAGF.PK), US Geothermal Inc. (UGTH.OB), Western GeoPower Corp (WGPWF.PK) and WFI Industries (WFILF.PK).
Chevron's (CVX) geothermal plants in Indonesia and the Philippines produce enough energy to power 7 million homes. Unocal (UCL) and Halliburton Energy (HAL) are leaders in the development of 280 degree C high temperature cements. Sandia National Laboratories [SNL] is in the forefront of geothermal well instrumentation.
Geothermal steam and / or hot water sources are typically located in relatively shallow pools in the rock subsurface. The temperature increases as the depth increases below the earth subsurface. On dry land and free of volcanic activity, the temperature is typically 41 degrees C higher for every 1.6 km below the surface. With a well drilled to a depth of 3 to 10 kms, steam can be successfully produced from water upon contact with subsurface rock. Steam produced in this manner is known as an Enhanced Geothermal System [EGS] and sometimes referred to as a Hot Dry Rock [HDR] system.
A 2006 MIT report suggests that there is enough hard rock at a 10 km depth in the United States subsurface, to supply the entire world's energy requirements for 30,000 years.
To produce a sustainable source of steam, the HDR system requires sufficient heat at a subsurface depth, a hard rock layer capable of being fractured, an insulating layer above it and a source of water.
Variations of the HDR System are currently being tested in the USA, Australia, France, Japan, Switzerland and Germany.
In the USA the challenge of an HDR System is drilling to the steam generating source rock layer at a depth of ~10 kms. ExxonMobil (XOM) has demonstrated its capability by drilling an 11 km well in its Chayvo, Sakhalin gas field.
The second challenge is utilizing fracturing technology at the required depth and successfully fracturing the hard rock. This involves typically pumping a mixture of sand and water under high pressure into the hard rock layer causing it to fracture.
There are many companies currently utilizing fracturing technology in the oil & gas industry. They include; Devon Resources (DVN), Encana Corp. (ECA), EOG Resources (EOG), Continental Resources (CLR), Duvernay Oil Corp. (DDV) and Apache (APA). However, I don't believe any of these companies have used fracturing technology at the required depths.
It is also unknown if the USA hard rock sub surface has a suitable insulating layer above it ensure containment.
A one time source of water is not considered an issue.
In some circles it is felt that Australia's subsurface granite layer buried below thick insulating sedimentary layers are more ideal to HDR development than comparable subsurface layers below the USA, Europe and Japan.
Another reason Australia's subsurface is more favourable, stems from the fact shallower depths are needed to achieve the required minimum temperature of 250 degree C for steam generation.
Geodynamics Limited (GDYMF.PK) has acquired a substantial Australian land base for HDR development.
From their calculations, they estimate that nine cubic kilometres of hot granite at 250 degrees C has the stored energy equivalent of 40 million barrels of oil. Geodynamics' Habanero 3 well, drilled using its 'Lightning Rig', reached a depth of 4,221 meters (13,850 feet) on January 22, 2008. They have verified 400,000 petajoules of high grade thermal energy, large bodies of granite to exist and the required temperature of 250 degree C for power generation. Geodynamics' long term production model supports a generating capacity of more than 10,000 MW.
Their 1 MW pilot plant is tentatively scheduled for production in Q4 2008. Proof of Concept certification, to demonstrate the viability of heat extraction from the hot rock reservoir and a confirmation of geothermal reserves, will be signed off prior to start-up by a team of independent geothermal experts from the USA.
Their 50 MW power plant is scheduled for production in 2012. It will produce zero emissions, require no external water supply and provide a continuous source of electricity to 50,000 Australian households.
Geodynamics estimates that it can produce power at $62 per MWh, including capital, operating and maintenance costs. This is considerably lower than current wind technology of ~$80 per MWh, and has the added advantage of continuous operation. The company expects to eventually drill 37 wells and build a 300MWe plant that would feed into the national grid and produce electricity at a cost that would rival new entry coal-fired power plants.
Disclosure: I have shares in EOG, ECA, CLR and APA.
http://seekingalpha.com/article/76811-geothermal-energy-sources-101?source=yahoo
Happy Birthday to you Stock Lobster! Thank you for keeping up this board and sharing your advise and information with us. Enjoy this day!
Sound Investing: Uranium
What most folks don't know about uranium is that it has been used by man for nearly 2,000 years.
Of course, it wasn't until fairly recently that we've been able to unlock the metal's mighty power.
Some time in the first century A.D., a small group of potters living in a tiny village near Naples, Italy, discovered that mixing uranium powder with standard glaze gave their ceramics a handsome yellow tint.
The technique was short-lived and disappeared some 400 years later with the fall of the Roman Empire. But in the early 19th century, the Germans rediscovered uranium's aesthetic properties.
This time uranium powder was mixed with glass, creating something known as "vaseline glass."
Now, this vaseline glass is pretty darn cool. It has a yellow-green hue in normal light, but glows a wild fluorescent green under ultraviolet light. Take a look at the antique vaseline glass pitcher below.
Uranium VaseWith uranium currently in such short supply, it might seem that this was sort of a waste of good material. But here's something else most people don't know: The radioactive metal is far from rare.
Get a load of this: It's been estimated that the earth's crust contains more than 88 QUINTILLION pounds of uranium.
That's 88,000,000,000,000,000!
The earth contains so much uranium that you can find it pretty much everywhere. As a matter of fact, it's very likely that there's uranium right in your own backyard.
But don't worry. The amount of uranium in your backyard is most likely very insignificant. It would have to contain a highly concentrated deposit in order for it to make you sick. And this is a rare
occurrence.
The rarity of such highly concentrated deposits actually makes finding the metal in large quantities incredibly difficult. In fact, despite the massive quantity of uranium on this planet, only a small
number of these highly concentrated deposits have been pinpointed around the globe.
Over 50% of the uranium produced from mines comes from in Canada (28% of world supply), and Australia (23%). Other major producing countries include Kazakhstan, Russia and Namibia.
Click the link for the whole article, pictures and tables:
http://www.energyandcapital.com/report/sound-investing-uranium/131
Baker Hughes: Global oil/gas rig count rises to 3,073 in May
By Wallace Witkowski
Last update: 12:48 p.m. EDT June 6, 2008
SAN FRANCISCO (MarketWatch) -- Baker Hughes Inc. (BHI:87.51, -0.93, -1.0%) said Friday its worldwide rig count increased to 3,073 in May from 3,009 in April and 2,862 in May 2007. Baker Hughes said oil and gas drilling rigs in the United States stood at 1,863 in May, up from 1,829 in April and 1,748 in the year-ago period. Internationally, there were 1,075 rigs in May, compared with 1,074 in April and 1,007 in May 2007.
The same goes for Russia. They recently said that their oil supply is decreasing. Well, it's only their own investments in near term future oil production that has "decreased", and they do not accept any foreign investors to invest in it.
What can we conclude?
Our future:
Saudi Arabia's Shura council (parliament) will hold a series of meetings over the next two weeks to discuss a controversial proposal by a key member to curb oil production to save reserves for better prices, Saudi media reported. The council will listen to a report by deputy chairman of the Shura water and public utilities committee, Salim bin Rashid Al Marri, who will argue for cutting crude supplies to maintain the Kingdom's underground reserves.
The whole article:
http://www.business24-7.ae/Articles/2008/6/Pages/06042008_9c3b2fe49a4a41b6b505463693ecd67a.aspx
By Nadim Kawach on Wednesday, June 04, 2008
Thanks, Milner. No hurry indeed.
I tried to Google their IPO documents, but somehow could not open it on their website.
We'll have time to read it. Have a nice weekend.
How many shares is Brittania issuing in their IPO, and how many shares they have authorized in all, do you know?
I am a little sceptical about the new shipping IPOs, because to me the most important thing is the management of a company. I know nothing about the managers of these new companies, and would like to follow their doings for some time before buying in.
Safe Bulker (SB $18.85 now, IPO price 19.00), an IPO a couple of weeks ago, seems to be a good company with a modern fleet and trustfull charterers, but still - I would follow their actions a couple of quarters before buying their shares.
Read the IPO documents of the Brittania Bulk very carefully and Google all the possible information about them before making a buy decision.
Yes, all you say is true. BUT it is not the OFFICIAL truth.. lol. What I see - and everybody can see - is that the governement of the European Union in Brussels is totally clueless. They may see, what is happening but they simply DON'T KNOW what to do. So, they better to show smiling face... and we pay taxes to support double governements.
Trichet has said that the purpose of the ECB is ONLY to fight the inflation (in Germany, though he does not say it). The economies of various countries taketh care of themselves.
Well, we are used to high gasolin prices - $9.60 a gallon now - but certainly it is beginning now to show how it hurts the economies. Truckers are starting to show their unsatisfaction all over Europe.
Germany and the Northern countries have been doing rather well. Russia, Turkey and the Middle East have boosted some sectors - manufacturing and engineering - quite a lot.
Hello Milner,
There's nothing unusual in GOGL's shareprice behaviour. Shippingstocks are very volatile, it's a seasonal industry and people take advantage of that. Summertime is always a low season, and people sell or short shipping stocks. If you are an astute trader, take advantage of the volatilty, but if you do not want to sit glued to your computer just wait for the lower prices and buy more shares. In five years you do not care about the stock price fluctuations, only check what is the dividend quarterly.
A big shareholder has sold his GOGL shares, but as it is a private person (a speculator) and not an institute, I am not worried.
You can predict the low season-high season messages on Norwegian message boards along the course of the year as short time shorts and longs try to beat each others. Long time longs just sit and smile : )
Mr. Billung, the CEO, has told that they are not interested in listing GOGL in New York.
What I would be interested in GOGL is that I hope they go on buying back shares to reduce the float. As long as the float is over 200 mil. the price do not make big moves upwards.
GM Stock Lobster. Yes, that's the way it goes - and everybody knows. The tide is turning to Asia, but it will no way slump USA. The eager and enthusiasm is moving to China, but the knowledge and wisdom - and also the errors - from the old world will guide and support them still for a long time to come.
The walk of life.
New contracts for Dockwise (DOCKF.PK $4.15)
Bermuda, June 5, 2008. Dockwise Ltd. announces that six new contracts have been awarded to their subsidiary Dockwise Shipping for the transportation of drilling rigs, barges and dredging equipment.
Dockwise Shipping will transport the Offshore Resolute and the Ocean Scepter, two existing jack- up drilling rigs, as well as four loads of dredging equipment and barges in 2008.
The total value of the contracts is close to USD 36 million.
All contracts will be executed in 2008 and contribute to the aim of Dockwise Shipping to continuously employ its vessels at the highest possible utilization.
For further information:
Fons van Lith
+1441 5991818
Fons.van.Lith@dockwise.com
About Dockwise Ltd
Dockwise Ltd. has a workforce of more than 1200 people both offshore and onshore. The company is the leading marine contractor providing total transport services to the offshore, onshore and yachting industries as well as installation services of extremely heavy offshore platforms. The group is headquartered in Bermuda with amongst others operational offices in Breda, The Netherlands. The group's main commercial offices are located in The Netherlands, the United States, China, Korea, Australia and Nigeria. The Dockwise Yacht Transport business unit is headquartered in Fort Lauderdale and has offices in France and Italy. The Dockwise Shipping network is supported by agents in Japan, Singapore, Spain, Argentina, Australia and Italy.
For further information: www.dockwise.com
Published: 14:54 05.06.2008 GMT+2 /HUGIN /Source: Dockwise Ltd /OSE: DOCK /ISIN: BMG2786A1062
SDRL $31.40 - Seadrill orders four jack-up newbuilds for delivery in 2010
Seadrill has entered into agreements with KFELS and PPL Shipyard in Singapore for the construction of in total four jack-up newbuilds with delivery in 2010.
The two units to be built at KFELS will be based on the KFELS Mod V 'B' design. The rated water depth is 400ft and drilling depth is 30,000ft. Deliveries are scheduled in June and November 2010 and the total contract price for the two units is approximately US$420 million. These jack-ups will be the fifth and sixth jack-up orders that Seadrill has placed with KFELS. The previous units have all been delivered on time and budget and are all in operation for various oil companies.
The two units to be built at PPL Shipyard will be based on the Baker Marine Pacific Class 375 Deep Drilling design. The rated water depth is 375ft and drilling depth is 30,000ft. Deliveries are scheduled in March and November 2010 and the total contract price for the units is approximately US$430 million. These jack-ups will be the second and third jack-up orders that Seadrill has placed with PPL Shipyard. The first unit, the West Triton was delivered on time and budget in early January this year and is currently operating for Apache in Victoria, Australia.
Seadrill has in addition received option agreements for further jack-up newbuildings in 2011.
Alf C Thorkildsen, CEO Seadrill Management AS, says in a comment,
"These newbuild orders are the best way to increase Seadrill's near term earnings potential in the offshore drilling market. We are convinced that the market for offshore drilling units in general will remain tight in the years to come. The decision to initiate the US$850 million building program was taken based on expected high return on invested equity due to the following factors; the current jack-up order book is less than 20 percent of the existing ageing fleet (which has an average age of 23 years), the jack-up newbuild capacity before 2011 at first class yards is limited and the number of term contract for jack-ups is increasing.
"Furthermore, the combination of deliveries, pricing and expected return is attractive compared to other investment alternatives within the offshore asset market as well as corporate opportunities. The Seadrill Board has specifically concluded that this opportunity is superior to increasing the bid for Scorpion in order to achieve a potential higher acceptance. The four jack-up newbuilds will grow the Seadrill high quality jack-up fleet from eight to 12 units. It is not expected that the newbuildings will significantly reduce Seadrill's short-term dividend capacity. Longer term, dividend is expected to increase as a function of the orders. Seadrill's shareholders should be assured that Seadrill's focus will continue to be on the deepwater segment. However, the Board will continue to work opportunistic in order to seek to maximize return to shareholders based on investments limited to modern drilling assets."
Published: 14:30 05.06.2008 GMT+2 /HUGIN /Source: Seadrill Limited /OSE: SDRL /ISIN: BMG7945E1057
Nissan, Renault Begin Building Car Factory in India (Update1)
By Vipin V. Nair
June 6 (Bloomberg) -- Nissan Motor Co., Japan's third- largest automaker, and affiliate Renault SA began building a factory in India to challenge Suzuki Motor Corp.'s dominance in the country.
The $1.1 billion factory will begin production in 2010 and will have a capacity to make 400,000 cars annually for local and export markets, the automakers said in a statement in Chennai in south India, where the plant's being built. Nissan will make the Micra model and other cars at the factory while Renault will produce cars based on the Logan and other platforms.
Renault, with 2.2 percent of the local market, and Nissan have lagged behind rivals in expanding into India, where Suzuki has 50 percent of the market. Automakers including General Motors Corp., Ford Motor Co. and Volkswagen AG have already announced a combined $6 billion in investments in the country, where car sales may double by 2013.
``Those who have a foot in the door now can capitalize on it later,'' said Ashutosh Goel, an analyst at Mumbai-based brokerage Edelweiss Capital Ltd. ``There's a large domestic market for compact cars, and the cost of manufacturing is also lower.''
India's automobile market will double to about 4 million vehicles, according to Global Insight Inc., an industry consultant. Expansion in the world's fastest-growing major economy after China helped local car sales to double in the past five years to reach a record 1.2 million units in the year ended March 31, according to the Society of Indian Automobile Manufacturers.
Significant Part
Nissan and other automakers are expanding in India as demand slows in Japan and credit market turmoil and surging oil prices damp sales in the U.S. Building local factories, as opposed to imports, will enable Nissan and Renault to sell cheaper cars.
``India is a significant part of Nissan's global expansion plan,'' Senior Vice President Colin Dodge said at the plant site.
Chennai, formerly known as Madras, is already home to factories of Ford, Mitsubishi Motors Corp., Bayerische Motoren Werke AG and Hyundai Motor Co.
Tokyo-based Nissan said last month it will introduce eight new models in India by 2012 as it aims to sell 100,000 vehicles a year in the country. The models will include an entry-level car powered with an engine between 1 liter and 1.2 liters and a light commercial vehicle.
The company will move production of the Micra to India from a factory in the U.K., Nissan said June 3.
Renault's Presence
Renault already sells the Logan sedan in India with partner Mahindra & Mahindra Ltd. The joint venture sold 25,891 cars in the year ended March 31 with 2.2 percent of the market, according to the Indian automobile grouping.
Nissan and Renault have also teamed up with Bajaj Auto Ltd., India's second-largest motorcycle maker, to sell a car in the country by 2011. Priced at about $2,500 it will take on Tata Motors Ltd.'s Nano, which goes on sale this year.
Nissan has also formed a joint venture with Chennai, India- based Ashok Leyland Ltd., India's second-largest truck maker, to make commercial vehicles. They will invest about $575 million.
To contact the reporter on this story: Vipin V. Nair in Mumbai at Vnair12@bloomberg.net.
FAW Sihuan to Boost Sales 11% in 2008 on China VW, Toyota Cars
By Tian Ying
June 6 (Bloomberg) -- Changchun FAW Sihuan Automobile Co., the parts-making unit of China's second-largest automaker, aims to boost sales 11 percent this year, helped by its parent's rising production of Toyota Motor Corp. and Volkswagen AG cars.
Sales may climb to 3.68 billion yuan ($531 million) from 3.32 billion yuan a year earlier, FAW Sihuan said in a Shanghai stock exchange statement today. The company will also boost cost controls and cut stockpiles of raw materials and finished parts to boost profit, it said.
China FAW Group Corp., the company's parent, and other local automakers have raised output as the country's surging economic growth spurs demand. Chinese automakers built 3.5 million vehicles in the first four months of the year, 16 percent more than a year earlier.
FAW Sihuan was little changed at 9.97 yuan at 9:39 a.m. in Shanghai trading. The company is an affiliate of Tianjin FAW Xiali Automobile Co. and FAW Car Co.
FAW Group and its units build cars including Toyota Corollas and Volkswagen Jettas through ventures with overseas automakers, as well as own-brand cars including Xiali compacts and Besturn sedans.
To contact the reporter on this story: Tian Ying in Beijing on ytian@bloomberg.net
China May Car Sales Grow at Faster-Than-Expected Pace (Update1)
By Tian Ying
June 6 (Bloomberg) -- China's passenger-car sales grew a faster-than-expected 16 percent last month, as demand spurred by economic growth withstood the effects of the country's deadliest earthquake in 32 years.
Sales of passenger cars, multipurpose vehicles and sport utility vehicles jumped to 564,600 in May, the China Association of Automobile Manufacturers said in an e-mailed statement today. The growth rate was quicker that April's 11 percent.
Sichuan province was hit by a 7.9 magnitude earthquake on May 12, which may have killed as many as 80,000 people and destroyed numerous factories and buildings. Still, the disaster failed to damp demand in Asia's largest auto market because of rising wages and growing production across the country.
``Demand has overcome the disruption of the earthquake,'' said Zhang Xin, an analyst at Guotai Junan Securities Co. in Beijing. ``The May number was better than I expected.''
China's economy has grown at least 10 percent in each of the past five years, making cars affordable to more people and spurring sales. China, ranked as the world's seventh-biggest auto market in 2001, is now second behind the U.S.
To tap rising demand, overseas carmakers, such as Volkswagen AG and Toyota Motor Corp., have built plants in the country and added new models. The rising competition has forced automakers to drop prices by about a third over the past seven years.
Car sales in the first five months climbed 17 percent to 3.02 million, the automakers' group said. Volkswagen AG's two Chinese ventures topped the auto sales rankings in the period. Shanghai General Motors Co. was third.
The following table shows China's 10 bestselling cars in May, the sales total and the manufacturers.
================================================================
No. Model Sales Automaker
================================================================
1. Jetta 18,243 FAW-Volkswagen Automotive Co.
2. Santana 17,562 Shanghai Volkswagen Co.
3. Accord 15,923 Guangzhou Honda Automobile Co.
4. Corolla 15,228 Guangzhou Toyota Motor Co.
5. Yuedong 12,239 Beijing Hyundai Motor Co.
6. Camry 12,070 Guangzhou Toyota Motor Co.
7. Lova 11,337 Shanghai General Motors Co.
8. Excelle 11,140 Shanghai General Motors Co.
9. Xiali 9,782 Tianjin FAW Xiali Automobile Co.
10. Focus 9,568 Changan Ford Mazda Automobile Co.
================================================================
Source: China Association of Automobile Manufacturers
To contact the reporter on this story: Tian Ying in Beijing on
WPT.to $4.82 Westport Receives Largest Non-Port Order to Date For Heavy Duty Fuel Systems
Thursday June 5, 8:00 am ET
HayDay Farms Orders 20 LNG Trucks With Westport HPDI
VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Jun 5, 2008 -- Westport Innovations Inc. (Toronto:WPT.TO - News), a global leader in alternative fuel, low-emissions transportation technologies, announced today that HayDay Farms of Blythe, California has ordered 20 heavy duty liquefied natural gas (LNG) trucks featuring Westport's High Pressure Direct Injection (HPDI) technology. The HPDI technology will allow HayDay's new Kenworth T800 trucks to operate in regional haul applications with the same power and efficiency as a diesel engine and provide superior economic and environmental benefits by running natural gas.
http://biz.yahoo.com/iw/080605/0404050.html
Re: LNG list. Thanks SL. I think that list will be very interesting in the near future.
Re: my post 287731: please add Westport Innovations (WPT.to CAD 4.80), a manufacturer of nat gas fueled cars, to the list. They have a interesting future, too, and some proof of it already.
Petrobras plans new liquefied natural gas terminals:
LONDON -(Dow Jones)- BG Group said Tuesday that the company and Petroleo Brasileiro S.A. (Petrobras) have signed two liquefied natural gas (LNG) agreements.
Under the agreements BG Group will supply the import terminals being built by Petrobras in Pecem (State of Ceara) and in Guanabara Bay (State of Rio de Janeiro).
The first agreement represents the beginning of Petrobras as a buyer of LNG in the international market.
This agreement will provide the first LNG cargo ever to be delivered into Brazil and it will be used for the commissioning of the Pecem terminal in July 2008.
The second agreement will enable LNG to be supplied to either the Pecem or Guanabara terminals in Brazil.
Petrobras will define, load-by-load, which terminal the LNG will be delivered to.
This will be dependent on the natural gas demand in the local markets.
The execution of both agreements is consistent with Petrobras' strategy to establish a flexible, firm LNG supply that is based on the demand of the Brazilian market.
GM Stock Lobster. The Eastern markets - Asia and Middle-East are very keen on LNG. Qatar has ordered a huge fleet of LNG carriers, but for the time being there are not many LNG ships. On the other hand there are not so many gas refineries capable of liquefying gas, so the traffic has not been very lively. There are several LNG refineries being built now, at least in Europe, so the future of LNG carriers looks bright.
GLNG $18.64 Golar LNG and Teekay LNG (TGP $29.45) declare dividends ($0.25 and $0.53) for this quarter.
WPT.to CAD 4.80 (manuf. of natural gas vehicles like T. Boone Pickens' Clean Energy CLNE $14.66)
Westport Reports Fourth Quarter & Fiscal 2008 Financial Results
Tuesday June 3, 8:00 am ET
Engine Shipments up 36%
Strong Growth Anticipated in Heavy Duty Business
VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Jun 3, 2008 -- Westport Innovations Inc. (Toronto:WPT.TO - News), a global leader in alternative fuel, low-emissions transportation technologies, today reported financial results for the fourth quarter and fiscal year ended March 31, 2008 (FY2008), and provided an update on operations.
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"The lower cost of natural gas compared to oil based fuels coupled with the strong environmental leadership story for natural gas vehicles has helped generate an unprecedented increase in interest in our products," said David Demers, Westport's Chief Executive Officer.
"Although we saw continued strong growth around the world in fiscal 2008, the rapid rise in oil prices late in the fiscal year has moved natural gas vehicles from being primarily an environmental story to now being both environmentally sound and a very good business decision. Early deliveries of Kenworth trucks, Sterling's recent product announcement, and Peterbilt's recent LNG announcement have all helped raise the credibility and momentum of this idea as a viable transportation fuel. Although we have been focused on bus and refuse fleets for our ISL G engine, and the San Pedro Bay Ports Clean Truck Program for our larger ISX program, demand is now appearing very broadly from truck fleets all over the world concerned about rising diesel fuel prices. Fuel has become the number one expense for many fleets and has risen by 300% to 500% over just the past few years."
"We are in a unique position and our products can offer real savings to truck and bus operators at a time when fuel prices are creating unbearable business pressures. This will, we expect, lead to stronger than anticipated demand going forward," added Demers.
Fourth Quarter Fiscal 2008 Financial and Business Highlights
- Reported consolidated quarterly revenues at $15.3 million compared to $19.3 million for the fourth quarter of fiscal 2007. The decrease in revenue is based primarily on a delay in planned deliveries by Cummins Westport Inc. (CWI) that slipped into fiscal 2009.
- Reported a net loss of $8.1 million ($0.09 loss per share) for the fourth quarter ended March 31, 2008 compared to a net income of $1.7 million ($0.02 earnings per share) for fourth quarter ended March 31, 2007. The fourth quarter of fiscal 2007 included a $4.2 million dilution gain on one of the Company's investments, $2.2 million in funding from the Industrial Technologies Office (ITO, formerly Technology Partnerships Canada) and reversal of $1.3 million in royalty accruals upon extension of Westport's agreement with ITO. The fourth quarter of fiscal 2008 included a $1.3 million future tax expense related to the gain on sale of long-term investments in the year and a net loss of $0.4 million from CWI after taking into account Cummins' 50% share of CWI's profit and losses.
- Announced a collaborative agreement with Kenworth Truck Company (Kenworth) to begin production of Kenworth T800 LNG trucks at its manufacturing facility in Renton, Washington, in early 2009.
- Announced that Wal-Mart Stores, Inc. will introduce four liquefied natural gas (LNG) fuelled Peterbilt 386 trucks into service at their distribution centre in Apple Valley, California.
- Announced the first 'port customer' (Southern Counties Express) order for 50 of Westport's (LNG) heavy duty trucks.
- Received certification for 2008 LNG engine from the Australian Department of Infrastructure, Transport, Regional Development and Local Government.
- Announced that Westport was awarded US$2.25 million in funding from the South Coast Air Quality Management District (SCAQMD), the California Energy Commission (CEC) and the Ports of Los Angeles and Long Beach (collectively, the Ports).
Whole story:
http://biz.yahoo.com/iw/080603/0403200.html
Verenium Commissioning Cellulosic Ethanol Demo-Scale Plant; Targeting Cost of $1.34/Gallon
28 May 2008
Verenium Corporation (VRNM $2.40) has begun the commissioning phase at its demonstration-scale cellulosic ethanol facility in Jennings, Louisiana. The plant is rated to produce 1.4 million gallons per year using specialty enzymes and the company’s proprietary technology to convert non-food biomass to ethanol.
Verenium says that it is tracking to its goal of beginning construction in the middle of next year on a 30 million-gallon-per-year commercial plant. In a briefing with analysts and investors, Verenium said that it was expecting a production cost of $1.34/gallon for its first-generation technology.
The whole article:
http://www.greencarcongress.com/2008/05/verenium-commis.html#more
WEEKLY MARKET REPORT
May 30th, 2008 / Week 22
Charter rates for Panamax and Supramax vessels eased this week, especially in the Atlantic on the back of an
increase of tonnage supply. Both these indices finished the week lower than last Friday. On the other hand the
Capesize market consolidated its strength and finished the week higher and reaching yet another record high
level.
The largest iron ore producer in the world, Vale (CVRD) of Brazil, has confirmed the order of 14 VLOC
(including options) of 400,000 dwt. Rongsheng Shipyard in China has confirmed that they have received such
order. The deal is worth $ 2 billion and brings Vale's fleet of VLOC to 20 vessels, which make the mining giant
the largest owner of VLOC. There are 124 dry bulk vessels with dwt in excess of 200,000 mt on order (of which
abt 79 are VLOC) and another 60 single hull VLCC vessels which have and will be converted into VLOC. We
understand that TMT is currently negotiating to alter 6 VLCC contracts to VLOC.
Purchase enquiries continue to grow on all sizes and we are also seeing continued enquiries for non double hull
tankers for conversion.
A number of dry bulk sales took place but we note the sale of the older 1983 blt 139,650 dwt caper "Vega III"
committed for a healthy USD 40 mill. On the modern scale we note the sale of the 2008 blt 170,500 dwt caper
"Golden Sentosa" committed for just below USD 120 mill with 5 years t/c at USD 48,000 per day.
Not so many tanker sales to report but it is interesting to note that the double hull "Trader II" blt 1987 was sold
for conversion into dry, suggesting that no matter what type of hull a tanker may have if it is realistically priced it
will be sold for conversion.
(DRYS) Ocean Rig ASA Extraordinary General Meeting
Saturday, 31 May 2008
DryShips Inc. yesterday announced that an Extraordinary General Meeting of Ocean Rig ASA was held on May 30, 2008. Election of the Board of Directors was the only agenda item. Mr. George Economou was elected new Chairman of the Board. Mr. George Demathas, Mr. George Xiradakis, each of whom serves on the Board of Directors of DryShips Inc., and Ms. Randee E. Day and Ms. Annette M. McEvoy were elected new Directors. DryShips Inc., based in Greece, is an owner and operator of drybulk carriers that operate worldwide. As of the day of this release, DryShips owns a fleet of 48 drybulk carriers comprising 5 Capesize, 32 Panamax, 2 Supramax, 9 newbuilding drybulk vessels, with a combined deadweight tonnage of over 4 million tons.
DryShips Inc.'s common stock is listed on the NASDAQ Global Market where it trades under the symbol "DRYS."
Source: Ocean Rig
New deepwater semi for ENSCO
Filed from Houston 5/30/2008 1:46:56 PM GMT
Semi ENSCO 8500 under construction
DALLAS, TEXAS: ENSCO International has finalized the construction contract for a new utra-deepwater semisubmersible rig, to be named ENSCO 8505. Keppel FELS shipyard in Singapore will build the rig at a total project cost of around US$537 million. Delivery is expected in the first half of 2012.
ENSCO 8505 will be ENSCO's sixth ultra-deepwater rig in the ENSCO 8500 series and part of the company's seven-rig deepwater fleet. Four of the ENSCO 8500 series rigs are contracted for term work beginning upon delivery
The ENSCO 8500 series semisubmersibles are capable of drilling in up to 8.500 feet (2,591 m) of water and feature offline pipe handling capability. The rigs have increased drilling capacity, improved automatic station keeping ability and larger living quarters than ENSCO's previous deepwater design ENSCO 7500.
Daniel W. Rabun, ENSCO's chairman, president and chief executive officer, commented: "We expect demand for ultra-deepwater equipment will continue to grow, and that expansion of our 8500 Series deepwater fleet offers an attractive opportunity to participate in this important market. We are excited about the opportunity to again work with Keppel FELS as we pursue a prominent position in deepwater drilling."
School's out here!! Gaudeamus igitur!
Drilling is still thrilling! World fleet utilization 90.3%.
DS-Petrodata's Weekly Mobile Offshore Rig Count
Filed from Houston 5/30/2008 7:47:50 PM GMT
Jackup delivery enhances worldwide offshore rig fleet
HOUSTON: The worldwide offshore rig count rose by two this week thanks to new jackup contracts, while a newbuild jackup delivery expanded the total worldwide offshore rig fleet size by one.
This week, 623 of the world's 690 mobile offshore drilling units are under contract, and worldwide offshore rig fleet utilization is 90.3 percent.
The worldwide offshore rig fleet grew with Keppel FELS Ltd.'s delivery this week of newbuild jackup West Ariel to Seadrill Ltd. The rig will begin a contract next month offshore Thailand with PTTEP.
The U.S. Gulf of Mexico contracted offshore rig count is unchanged this week, while total available offshore fleet size increased by one. With 104 rigs out of 125 available under contract, U.S. Gulf fleet utilization stands at 83.2 percent.
No change was recorded this week in the South American offshore rig count. With 70 rigs out of 94 available under contract, fleet utilization remains 74.5 percent.
All 99 mobile offshore drilling units in the European/Mediterranean region still remain under contract. European offshore rig fleet utilization is 100.0 percent.
In West Africa, the offshore rig fleet size and number of rigs under contract are unchanged. With 57 rigs out of 59 available under contract, utilization remains at 96.6 percent.
In the Asia/Australia region, total offshore fleet size and number of contracted rigs grew by one each. With 103 out of 106 available offshore rigs under contract, fleet utilization in the region is 97.2 percent.
For additional information, contact: Karen Boman, at 832-463-3000, email kboman@ods-petrodata.com.
For tables and charts click the link:
http://www.energycurrent.com/index.php?id=2&storyid=10879
Drilling is still thrilling! World fleet utilization 90.3%.
DS-Petrodata's Weekly Mobile Offshore Rig Count
Filed from Houston 5/30/2008 7:47:50 PM GMT
Jackup delivery enhances worldwide offshore rig fleet
HOUSTON: The worldwide offshore rig count rose by two this week thanks to new jackup contracts, while a newbuild jackup delivery expanded the total worldwide offshore rig fleet size by one.
This week, 623 of the world's 690 mobile offshore drilling units are under contract, and worldwide offshore rig fleet utilization is 90.3 percent.
The worldwide offshore rig fleet grew with Keppel FELS Ltd.'s delivery this week of newbuild jackup West Ariel to Seadrill Ltd. The rig will begin a contract next month offshore Thailand with PTTEP.
The U.S. Gulf of Mexico contracted offshore rig count is unchanged this week, while total available offshore fleet size increased by one. With 104 rigs out of 125 available under contract, U.S. Gulf fleet utilization stands at 83.2 percent.
No change was recorded this week in the South American offshore rig count. With 70 rigs out of 94 available under contract, fleet utilization remains 74.5 percent.
All 99 mobile offshore drilling units in the European/Mediterranean region still remain under contract. European offshore rig fleet utilization is 100.0 percent.
In West Africa, the offshore rig fleet size and number of rigs under contract are unchanged. With 57 rigs out of 59 available under contract, utilization remains at 96.6 percent.
In the Asia/Australia region, total offshore fleet size and number of contracted rigs grew by one each. With 103 out of 106 available offshore rigs under contract, fleet utilization in the region is 97.2 percent.
For additional information, contact: Karen Boman, at 832-463-3000, email kboman@ods-petrodata.com.
For tables and charts click the link:
http://www.energycurrent.com/index.php?id=2&storyid=10879
GM Stock Lobster. Finland is in the middle of a political corruption scandals (in the scale of our resources). It has now beeing unveiled that several candidates of the parliamentary election two years ago were resourced by the businessmen, who had interests in building vast shopping malls around the country... Il grando catastrofo in Finland, which has always been estimated as the least corrupted country in the world.
Well, to me this seems like "a storm in a drinking glass" :). Don't we all know that the electoral candidates must get money for their campaigns from somewhere?
But this is serious in Finland now. The opposite has threated to demand new election. We'll see what's this finally all about, but certainly it makes difficult for the politicians under the loop (also the Prime Minister!) to become re-elected.
The weather is fine and the golf courses are open, so I can bear this..