National Petroleum Authority, Ghana » News

Oil trades near $74

landpado — Thu, 02 Sep 2010 14:52:22 +0000

Oil traded near $74 a barrel after a government report showed US crude inventories increased almost three times more than analysts forecast. Futures fell as much as 0.4% on Thursday after the Energy Department reported stockpiles jumped by 3.43 million barrels to 361.7 million last week. Supplies were projected to climb 1.2 million barrels, according to a Bloomberg News survey. Crude pared losses as Asian stocks rose amid gains by raw-material producers. “The oil market has got some headwinds in front of it as it moves into a seasonal slowdown with very high stock levels,” said Mark Pervan, head of commodity research at Australia & New Zealand Banking Group Limited in Melbourne. The October contract was at $73.85, down 6 cents, at 8:27 a.m. London time in electronic trading on the New York Mercantile Exchange. Prices dropped as much as 31 cents to $73.60 a barrel earlier today. Yesterday, it rose 2.8 percent to $73.91, the biggest gain since August 2. US refineries operated at 87 percent of capacity, down 0.7 percentage points from the prior week, the Energy Department report showed. It was the lowest level since April. Refiners often idle units for maintenance in September and October as gasoline demand drops and before heating-oil use increases. Brent crude for October settlement fell 48 cents, or 0.6%, to $75.87 a barrel on the London-based ICE Futures Europe Exchange. On Thursday, it gained 2.3% to $76.35.

Ghana on track to meet 2010 budget deficit target of 7.5%

landpado — Tue, 31 Aug 2010 16:56:01 +0000

Ghana is on track to reduce its budget deficit to 7.5% of gross domestic product this year, meeting a target Standard & Poor’s (S&P) had cast into doubt, a Deputy Finance Minister, Seth Terkper has said. According to him, “There’s a clear austerity program in place that government is following,” The emerging oil country in the West African continent has had its rating lowered to B, five steps below investment grade, from B+, S&P said in a statement August 27. The agency cited concerns over large fiscal deficits and a lack of clarity on oil-industry laws. Analyst Ravi Bhatia said Ghana’s budget deficit may be “around 8.5%” this year. In the first half of the year, the deficit narrowed to 3.2%, from 4.5% a year earlier, Bank of Ghana Governor Kwesi Amissah-Arthur said on July 16. Laws to regulate Ghana’s emerging energy industry “are before Parliament and they will be passed before oil production begins in December,” Terkper said. Ghana expects to pump 12,000 barrels of oil a day by 2011 when supplies from its offshore Jubilee oilfield start by the end this year.

Oil heads for first monthly slide since May

landpado — Tue, 31 Aug 2010 16:53:55 +0000

Oil fell, headed for its first monthly decline since May, before a report forecast to show US crude inventories increased to the most in a month. Futures dropped as much as 1.7%, extending their decline from the highest level in a week reached on August 27, after the Commerce Department said incomes rose 0.2%, less than the 0.3% estimate by economists surveyed by Bloomberg News. Oil for October delivery declined as much as $1.28 to $73.42 a barrel in electronic trading on the New York Mercantile Exchange, and was at $73.53 at 9:34 a.m. London time. Brent crude for October settlement dropped $1.05, or 1.4%, to $75.55 a barrel on the ICE Futures Europe Exchange in London. Prices have tumbled 6.8 percent in New York this month and are down 7.3% since the start of the year. Oil rose 2.3% last week, the biggest increase since the period ended July 23. An Energy Department report tomorrow may show crude stockpiles gained 1.55 million barrels last week. “This week’s macro releases are likely to confirm a trend of slowing growth in the US, and that’s once again dragging sentiment down in the oil market,” said Andrey Kryuchenkov, an analyst with VTB Capital in London. “The past couple of weeks have been clouded by talk of a double-dip recession,” said Ben Westmore, a minerals and energy economist at National Australia Bank Ltd. in Melbourne. “Until we get some macro-news that is more consistent, these markets are going to be a bit choppy.”

Seven ways to reduce petrol consumption

landpado — Mon, 30 Aug 2010 11:23:23 +0000

Reducing fuel consumption can help you save money, lower your car’s running costs and protect the environment.
1. Drive at the correct speed: More than 50% of your engine’s power is used to overcome aerodynamic drag (air resistance). Since fuel is burnt more rapidly at speeds above 90km/h, as a rough gauge, traveling within the speed limits on the highway would not only be safer, it keeps the Police away and helps you save money. Imagine… your car burns 15% more fuel at 100km/h, and 25% more fuel at 110km/h than at 90km/h. How much more fuel will it burn if you’re traveling at 120km/h?
2. Maintain correct tire pressure: Deflated tires generate excessive heat, wears out faster and increases rolling resistance. However do not over-inflate as this might reduce the tire’s “grip” on the road, causing potential danger if you need to hit the brakes. Checking the tire pressure every 1-2 weeks will help ensure a smooth, safe ride.
3. Watch your engine’s RPM: Your car’s engine runs most efficiently between around 1,500 and 2,500 rpm. Therefore shift gears as soon as possible, before your engine reaches 2,500 rpm. For auto-transmission cars, you can always switch to “economy” mode and avoid stepping too hard on the gas. In this way, the transmission will shift gears faster and the gradual acceleration will ensure that less gas is burnt.
4. Unload unnecessary stuff from your car: Every additional 50kg load added increases fuel consumption by two per cent. So avoid using your car trunk as a storage compartment. This habit consumes extra fuel unnecessarily.
5. Drive smoothly: You will use up to six times more fuel to move a car from a dead stop. Therefore anticipate the traffic ahead and avoid bringing your car to a complete stop. Also, you can reduce fuel consumption by up to 10 per cent if you do not brake or accelerate unnecessarily. Avoid following another vehicle too closely — this alone will help you avoid 90% of all unnecessary brakes and hard accelerations.
6. Clean your air filter regularly: Clogged air filters can increase fuel consumption by up to 10 per cent. These airflow resistances promote incomplete combustion and this cause the efficiency of your engine to go down. So clean up or service your air filters when it’s time to.
7. Switch off your engine when not in use: We often like to leave our engines idling while waiting for passengers or to make an emergency phone call at the side of the road. However if you leave your engine idling for more than a minute, it consumes much more fuel than restarting (your engine). Contrary to popular belief, the increased wear and tear from this practice is negligible. By following these simple steps, you will see your petrol consumption fall and your fuel efficiency increase quite dramatically.
CREDIT: Carl Vouz, writer for the car enthusiast and auto insurance community. His articles are publicized widely and has helped car owners implement insurance tips that only professionals know.

Ghana Plans to Spend $4.5 Million to Double Coffee Production

landpado — Mon, 30 Aug 2010 11:21:15 +0000

Ghana, the world’s second-biggest cocoa producer, will spend $4.5 million to more than double production of coffee to 3,000 metric tons in four years, the state-run industry regulator said. The project will expand crop cultivation to 2,000 hectares (4,942 acres), William Quaittoo, the Ghana Cocoa Board’s manager for coffee and Shea, said in an interview. “Wherever cocoa can grow, coffee can also thrive there,” William Quaittoo said. Coffee output may reach 1,260 metric tons during the 2010- 11 harvest, making Ghana the third-smallest producer of the beans in sub-Saharan Africa, according to the US Department of Agriculture. Liberia and Central African Republic produce less than Ghana, at 600 tons each. Africa’s biggest coffee grower, Ethiopia, is expected to produce 252,000 tons during its October-to-September harvest, according to the USDA. Ghana’s neighbor Ivory Coast, the world’ biggest cocoa grower may produce 132,000 tons during the 2010- 11 harvests. Ghana mainly grows the robusta variety of coffee, a lower- quality bean used primarily for the production of instant coffee, according to the International Coffee Organization. Ghana’s Finance Ministry has approved the request for funding, which will be used to revamp abandoned farms and start new plantations, Quaittoo said. “The intention is to make sure every part of the value chain works well,” he said. Robusta coffee for November delivery fell in London by $4, or 0.3 percent, to $1,593 per ton at 12:13 p.m.

Oil Trades Near Seven-Day High on U.S. Economic Recovery Hopes

landpado — Mon, 30 Aug 2010 11:07:05 +0000

Oil traded near its highest price in seven days on optimism fuel demand will increase because of improved prospects for economic growth in the US, the world’s biggest user of crude. Crude for October delivery was at $74.94 a barrel, down 23 cents, in electronic trading on the New York Mercantile Exchange at 8:33 a.m. Singapore time. The contract rose as high as $75.59 on August 27, the highest price since August 19. Prices have dropped 4.8% this month. The Fed “will do all that it can” to ensure economic growth, Bernanke said on August 27. Futures erased earlier gains after the dollar strengthened against the euro, making dollar-priced commodities priced in the US currency less attractive for investors in other currencies. Oil gained 2.5% on August 27 after Federal Reserve Chairman Ben S. Bernanke pledged to safeguard the recovery. The Commerce Department reported the economy grew at a revised annual 1.6% in the second quarter, more than the 1.4% median forecast of economists in a Bloomberg survey. His comments “gave markets some cause for optimism,” said Ben Westmore, a minerals and energy economist at National Australia Bank Ltd. in Melbourne. Brent crude for October settlement was down 15 cents at $76.50 a barrel on the ICE Futures Europe Exchange in London. It earlier advanced as much as 40 cents, or 0.5%, to $77.05. The contract gained $1.63, or 2.2%, to $76.65 on August 27.

Oil price climbs a second day.

kariko — Thu, 26 Aug 2010 15:45:30 +0000

Oil rose for a second day in New York after equities gained and investors speculated that crude price declines were overdone relative to the outlook for the global economy. Oil for October delivery climbed as much as 45 cents, or 0.6%, as the MSCI Asia Pacific Index snapped two days of losses. Crude oil for October delivery rose to $72.97 a barrel in electronic trading on the New York Mercantile Exchange, and was at $72.60 at 2:59 p.m. Singapore time. On Wednesday, the contract climbed 89 cents to $72.52. Futures have dropped 8.5% this year. Oil advanced 1.2% yesterday as US equities snapped a four-day losing streak. The investment appeal of commodities was also boosted as the dollar weakened against all but three of its 16 most-traded peers after reports yesterday showed sales of new homes and durable goods orders in the US increased less than forecast. “Oil’s tightly correlated with the equities markets,” said Serene Lim, a commodity strategist at Australia & New Zealand Banking Group Ltd. in Singapore. “It could also mean investors have already priced in bad news. Fundamentals are still quite bearish.” The gains came even as crude stockpiles rose 4.11 million barrels to 358.3 million barrels last week, according to a report from the Energy Department. Inventories were forecast to climb 300,000 barrels, according to the median of 17 analyst responses in a Bloomberg news survey.

Ghana expects first Oil from Jubilee Field This Year

kariko — Thu, 26 Aug 2010 15:42:56 +0000

The Jubilee oil field off the coast of Ghana will start production in the fourth quarter of this and will reach targeted output levels. This was disclosed by the chairman of Ghana National Petroleum Corporation (GNPC), Ato Ahwoi who was interacting with the media in Stavanger, Norway where he is attending an oil and gas conference. Asked whether the first oil from the field is achievable in the fourth quarter, Mr. Ahwoi affirmed Ghana’s readiness to produce its first oil. “Certainly, and production will go to the levels that they should go up to”. Jubilee is expected to produce 120,000 barrels a day next year. Kosmos Energy LLC, the US based oil explorer focusing on West Africa, ended its plans for a $4 billion sale of fields in Ghana to Exxon Mobil Corporation after government opposition to the deal. The company said in August 18 it will focus on further exploration of Ghana’s deposits. The field is operated by Tullow Oil Plc. In October, Kosmos agreed to an exclusive sale of its 23 percent stake in Jubilee to Exxon, in a deal valued at $4 billion. The same month, GNPC said it would buy the stake from Kosmos after the government declined to approve the agreement. Ahwoi declined to comment further on details of the stake sale.

PetroChina profit misses estimates after price curbs

kariko — Thu, 26 Aug 2010 15:39:56 +0000

Asia’s biggest oil company, PetroChina Company, posted a 29% rise in first-half profit, missing estimates, as government controls on gasoline and diesel tariffs curbed gains from higher crude oil prices. Net income climbed to 65.3 billion yuan ($9.6 billion), or 0.36 yuan a share, from 50.5 billion yuan, or 0.28 yuan, China’s second-largest oil refiner said in a statement to the Hong Kong stock exchange on Thursday. That compares with the 68.7 billion yuan median estimate of nine analysts surveyed by Bloomberg. China raised fuel tariffs once this year after five increases in 2009 as it sought to limit inflation in the world’s fastest-growing economy. PetroChina bought stakes in two Canadian oil-sands projects and teamed up with Royal Dutch Shell Plc to acquire an Australian coal-seam gas producer to counter a slump in refining margins. “PetroChina has already concluded quite a few sizable takeover deals over the past few months and more are expected in the future,” said Yin Xiaodong, chief analyst at Beijing-based Citic Securities Company. “Its global expansion in oil and gas field assets will offset tighter refining margins when oil is high.” The Beijing-based energy producer plans to spend at least $60 billion in the next decade on overseas takeovers after paying at least $6.2 billion in the past year for refineries and reserves in Australia, Canada, Singapore and Central Asia.

Refining margins decline of 51% May Worsen in Asia

kariko — Thu, 26 Aug 2010 15:36:23 +0000

The combination of slowing Chinese economic growth and expanding refineries mean this year’s 51% decline in profit margins from turning crude into gasoline, diesel and kerosene is poised to worsen. China National Petroleum Corporation says the amount of oil the nation can process will rise to 490 million metric tons this year from 429 million in 2009. The world’s biggest energy consumer is likely to generate a surplus as much as 15 million metric tons (110 million barrels) this year, possibly boosting second-half net exports by 68 percent to 9.4 million tons from the first six months, Gong Manying, a market-research director at PetroChina Co., said in an August 16 interview from Beijing. Asian refining profits fell the most in nine months since reaching the 2010 high in March as Chinese fuel demand waned amid government attempts to cool economic growth and reduce pollution. The difference between the price of Dubai crude and gasoline in Singapore, the region’s benchmark measure, is already 36% below the five-year average and may narrow further, according to Victor Shum of Purvin & Gertz Inc. “There is going to be more competition among refiners,” said Shum, a senior principal at the energy research company in Singapore. “If Chinese demand is indeed slowing while projects start on schedule, the surplus will definitely depress the regional refining margin.” The difference, or spread, between Dubai crude and gasoline in Singapore fell to $6.24 a barrel on Wednesday, compared with a 2010 high of $12.79 on March 9 and an average $9.68 over the past five years. It was at $5.42 as of 3:12 p.m. in Singapore today. For diesel, the spread was $12.42 a barrel compared with a five-year average of $15.42.