The oil industry is struggling to cope with rising demand. After a brief respite during the fourth quarter of last year — when growth stalled following the price spike caused by the two US hurricanes — strong demand is re-asserting its grip on the oil market. Oil prices are now over $70/bl as upstream problems constrain crude supplies from both Opec and non-Opec producers and refiners face difficulties meeting changing quality specifications for US gasoline and diesel.

Read the rest of this article brought to you from Argus Fundamentals and Argus Media Ltd

mWELCOME

Welcome to the May issue of MZINE. This month we look at the rising Oil Prices in a special article from Argus Fundamentals see MSTORY for our main article. At MPHASIS  Derek has discovered a new market and the melting ice caps solution!! Don't forget to check out our thought of the month at MPATHY.

Our latest list of training courses can be found at MTRAIN. I am now taking last minute bookings for the one-day seminar LNG Markets on 17th May, so don't miss out. Can I also draw your attention to our 2006 EU Gas Markets one-day seminar in June. Book your place now to avoid disappointment. 

MFEATURE this month is an article looks at how African sun can meet the world's power requirements.

Please feel free to contact me about this newsletter and let me have your thoughts, what you like and don't like, I am open to your suggestions.

And if you have enjoyed reading this newsletter and think you know someone who might also enjoy it then feel free to forward it on.

Kind regards.

Paul Cassar
Editor

top

mTRAIN

All of our training courses can now earn, participating solicitors, CPD points from the law society. Attendance at any of our events may also contribute to meeting accountancy CPD requirements under the terms of the ICAEW’s CPD policy. Please visit www.icaew.co.uk/cpd for the ICAEW's CPD policy details.

Over the next few months the following one-day events are being held in London, UK and our two-day event in Oxford, UK. 

More information about these courses can be found by clicking on the course title or visiting energytrainingnetwork.com and clicking on public courses. Alternatively you can contact me by email or phone +44 (0) 1235 553917, fax +44 (0) 1235 553917.

Any of our public courses can be held at your location, for your company, or they can be tailor made to your requirements. If you want to find out more contact our Training Manager Nick White nick@mjmenergy.com +44(0) 1235 211161.

OTHER DATES

top

mPRICES
Forward Oil Curve

THE FORWARD CURVE

Lengthy turnarounds, low refinery runs and high crude stocks — especially in the Midwest around the delivery point for the NYMEX light sweet crude futures contract — are keeping the front end of the forward curve in steep contango, with WTI trading at an unusual discount to Brent. However, tight global fundamentals and geopolitical concerns about the growing row over Iran ’s nuclear processing facilities have sent the general level of prices soaring to record levels this month. Gasoline is adding to the upward pressure on crude prices with crack spreads now over $20/bbl.

Recent upward revisions to economic growth by the IMF and oil demand by the IEA have added to the perception of a continuing tight market this summer. With over 0.5 mbpd of light sweet Nigerian crude still shut in and non-OPEC supplies 1 mbpd lower than expected last quarter, fears of further supply disruptions over Iran make the market very nervous, despite reassurances about strategic stocks from the IEA. Calendar 2007 is over $74/bbl, while the balance of Calendar 2006 WTI is nearly $75bbl — equivalent to $74/bbl for Brent or just under $70/bbl for the new OPEC basket of crudes.

mPHASIS!
for the lighter side of life!

top

mPATHY
thought of the month.

Then the time came when the risk it took 

To remain tight in a bud was more painful 

Than the risk it took to blossom.

Anais Nin

                                                                         top

mOFFERS
this month's exciting offers!

As a special thank you to all our readers we would like to offer you this free Conversion chart which you can print off and carry with you wherever you go.
Download pdf

top

mFEATURE

Heat your flat on African sun

Source: Montel Powernews

(Montel Powernews) - The deserts of northern Africa could be a powerhouse for Europe in the future, Prince Hassan bin Talal of Jordan told the World Energy Dialogue in Hannover Tuesday.

In a televised address to the conference, the royal highness said a coupling of the technology belt in Europe with the sun-belt across Africa and the Middle East , can "turn deserts into clean and inexhaustible powerhouses for the world."

According to the Club of Rome, and independent think-tank where the Jordanian prince is president, the annual solar irradiation of desert regions is equivalent to a layer of oil 25 cm thick. Less than 0.1 per cent of the world’s desert space would be sufficient to generate electricity for the world demands.

Furthermore, the prince said new solar power plants could make a strong contribution in turning seawater into fresh water. "Clean power for Europe and fresh water for the Middle East and North Africa, wouldn’t that be a win-win situation and a solution for us all?," he said.

Time for action

The Club of Rome warned already in 1972 against the threats of relying on fossil fuels alone. After three decades of ignorance, many in the world are now finally starting to reassess their energy perspectives, Prince Hassan bin Talal said.

"It is ironic that people around the world impose on themselves ‘low carbohydrate’, ‘fat free diets’ for their health. But the environment also needs a ‘low-carbon’, ‘emissions free’ diet to recuperate its supporting capacity," he rhetorically put it.

But how soon?

Speakers at the energy conference welcomed the prince’s proposal, although no one dared to predict when the vision could be turned into reality.

"We have heard today of incredible challenges. The only way to meet these challenges is through innovation," said Utz Claessen, chairman of the board at EnBW.

According to Claessen, one of the biggest challenges facing the energy markets today is to bridge the gap between areas with high potential for production and populated areas with high consumption. Instead of subsidising non-profitable generation in areas with high demand, money should rather be spent on developing technology to transport and store energy from areas with high potential for production, he held.

April 26, 2006

top

Copyright © 2006, MJMENERGY LTD. All rights reserved (but feel free to copy, post, quote, think about or forward on)