Could you tell me why you invested in this company? And if things have gone so wrong why you haven't sold up? I can only surmise that you think the share price is going to go up as why would you still be holding. Just curious as the first thing you do at the start of the trading week is paint a picture of doom. Maybe you got burnt here dumped your holding and now won't let it go or move on. Very strange you are!
Like yourself, I hope that QFI will get to proceed with their plans for KSA. I too know very little about the practical aspects of converting from HFO to gas for power generation, whereas I do know from the information available that conversion to MSAR is effectively 'plug and play'.
As I mentioned when posting, and unlike another now infamous correspondent here, my intent was not to 'deramp', just to pass on some information which I found potentially relevent.
news from San Roque ws always confirmed by QFI as "mid year" so we have a little while to wait. It would be great to hear soon by YOUR self imposed dedlines are juast another attempt at stiring up discontent and negative fealings. News from KSA is certainly not so positive but they will want to maximise oil and gas revenues so in the general sceme of things could be better but not critical Regards
agree Diver, what is more relevant is that KSA are going to place greater importance on Gas, and with no consensus on production cuts-oil-the price of $50 will be here for some time.
Factor in no RNS with regard to San Roque Refinery Managers public statement of End of May production/ loading, then you can see why those in the know-NOT the self-proclaimed experts on here- that is the markets, are keeping the SP depressed.
Interesting article, but I don't see any relevance to QFI. It's a new ball game at current oil price, contracts 're negotiated as rates have dropped so much, choose to be greedy and risk future contracts is a poor strategy in my books.
I know practically nothing about power generation, and apologise for my ignorance.
Gas surely requires a different procedure to generate power than oil. If so, then new power stations and their requisite infrastructure are required which will take time to plan and build. Isn't it therefore economical for KSA to use MSAR in the existing power stations while construction is proceeding? A temporary respite for QFI in KSA perhaps, but a very profitable one for the next year or three?
Although oil prices briefly went above US$50 per barrel this past week, the forthcoming Opec meeting in Vienna on Thursday will provide no support for those who hope the organisation will finalise the production freeze that Saudi Arabia rejected in Doha.
That decision came during the April emergency session convened to consider a Russian initiative to limit production increases.
The kingdom’s policy under new energy minister Khalid Al Falih remains focused on increasing its share of the world oil market and leaving prices to free competition.
But neither has Riyadh dumped new supplies on the market during the difficult time while Iran is boosting its exports after the lifting of the UN sanctions as a result of the nuclear deal with Tehran. Saudi Arabia could easily boost output significantly with its 1.5 million bpd excess capacity.
While shorter term it has not added fuel to the price war fire that forced barrels into the $20s earlier this year, there can be no doubt about its determination to boost its capacity and add supply whenever higher cost producers are forced out of the market.
In contrast to collapsing international drilling levels offshore and in the US shale production frame, Saudi Arabia has increased its drilling and is busier than ever in boosting its reserves of both oil and natural gas. Ironically, it appears that the kingdom may have the richest shales in the world and a policy priority of Saudi Aramco is increasing natural gas production which will replace the burning of heavy crude oil now used in electricity generation.
Longer term this will make more Saudi crude available for export and reduce the huge subsidy on electricity under which heavy oil is priced at around $2 per barrel for generation purposes. Electricity generation has also been reorganised under the purview of the new energy minister, where previously it has been a separate ministry which lobbied for underpriced crude.
The reorganisation will facilitate the rationalisation of the Saudi energy sector which Mr Al Falih had been pursuing as head of Saudi Aramco. He has the strong support of the influential deputy crown prince, Prince Mohammed bin Salman, who is determined to restructure the whole economy along more liberal lines, which would reduce costly subsidies and attempt to diversify new growth away from oil.
But the reorientation of the Saudi economy will be financed largely from oil revenues and there is clearly a concern that a large proportion of Saudi reserves, which some experts and the former Saudi energy minister Ali Al Naimi put as high as 1 trillion barrels, will be left in the ground.
Prince Mohammed has stated that Saudi capacity could be pushed to 20 million barrels per day, indicating a different mindset from the leaders who prevented Aramco from lifting capacity to the 24 million bpd which had been contemplated in the 1970s when American supermajors controlled the company.
This is part of an article in a well respected online oilfield trade publication, which I won't name for fear of copyright problems.
"In contrast to collapsing international drilling levels offshore and in the US shale production frame, Saudi Arabia has increased its drilling and is busier than ever in boosting its reserves of both oil and natural gas. Ironically, it appears that the kingdom may have the richest shales in the world and a policy priority of Saudi Aramco is increasing natural gas production which will replace the burning of heavy crude oil now used in electricity generation.
Longer term this will make more Saudi crude available for export and reduce the huge subsidy on electricity under which heavy oil is priced at around $2 per barrel for generation purposes. Electricity generation has also been reorganised under the purview of the new energy minister, where previously it has been a separate ministry which lobbied for underpriced crude."
My hopes and beliefs are still with QFI and MSAR2 as a marine fuel, but fear it may be a while before we hear anything concrete regarding KSA. The new energy minister is doing everything he can to make himself known as a 'new broom'.
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