GLG News(sm): Energy & Industrials

Coal Bets on High Gas Prices

Hans Linhardt — Mon, 09 Nov 2009 19:48:31 EST

Siemens Energy secured a licensing and equipment contract from Tenaska Energy Inc. , Omaha for a commercial-scale coal gasification plant with CCS features to be located in Taylorville , Illinois. The plant output is synthetic natural gas ("SNG"). The project budget is $3.5 billion with a potential gross capacity of 730 MW.

The New Airline Business Model

Roger Williams — Mon, 09 Nov 2009 19:35:05 EST

Disclosure: Airline Information owns and operates the Ancillary Revenue Airline Conference (ARAC) referred to in this LA Times article. I am also actively involved in setting the business agenda for the event. The title and strap line do not tell the whole story. Since I was actually there, and what is currently happening with ancillary revenues in my opinion will permanently alter the commercial airline industry, I thought it would be insightful to share my first hand analysis in this forum.

Aquaculture Can Feed The World, Tilapia Is a Big Part Of The Answer

James Aliucci — Mon, 09 Nov 2009 15:24:47 EST

We read more and more about aquaculture and how the industry is progressing, and reading about its issues of concern as well. We see that the carnivores of the industry may be more of a problem than a solution. We must work on a better feed to product ratio, but more importantly, we have part of the solution, tilapia culture.

Exploration in Congo (Brazzaville) should continue into 2010

Michael Lynch — Mon, 09 Nov 2009 11:59:58 EST

French company Total, top operator in the Republic of Congo, plans to increase production by 20% by the end of 2009. At the end of the year, Congo will be able to produce 300,000 bbl/day. Total's new production will come from a discovery of an oil field in May of 2008 named Moho Bilondo. Estimated output from the new field is 90,000 bbl/day. The Republic of Congo is the fourth largest producer of crude oil in sub-Saharan Africa after Angola, Nigeria and Equatorial Guinea.

Airbus Right On Recovery, Wrong On Premium Market

GLG Expert Contributor — Mon, 09 Nov 2009 11:07:41 EST

Despite Airbus and Boeing having differing views on product positioning, it is fair to say they both see traffic growth improvements in the coming years. However, Airbus’ suggestion that a recovery of the premium sector is just a year away is at odds with market realities.

New strategic alliances will be key for future growth

Roger Williams — Sun, 08 Nov 2009 21:43:38 EST

Present task force efforts are sound especially by securing much needed short term cash. Things and possibly more cash support are developing on the alliances front as Delta and the SkyTeam Alliance sees a viable and much needed tie-up with JAL's route network.

New gas to Italy or through Italy?

GLG Expert Contributor — Sun, 08 Nov 2009 13:33:22 EST

New sub sea gas pipeline Algeria Italy impacts and potential impacts

Effect of reported Cairn sale of oil to RIL

GLG Expert Contributor — Sun, 08 Nov 2009 10:24:30 EST

1. Overall very little effect on supply demand dynamics.2. Interesting question - why RIL

More Algerian gas to Italy - what does it mean?

GLG Expert Contributor — Sun, 08 Nov 2009 06:29:25 EST

An article has been selected for analysis, quoting the Algerian president announcing algerian gas to italy in 2009. First, the news needs to be correct - gas will not be supplied by this in 2009.Second, the pipeline needs to be in perspective - there is already much gas flowing from Algeria to Italy, with long experiences in ensuring economicsThird, other suppliers will have to be attractive in an uncertain future, where demand may not grow as previously expected

Qatar Looks For Urea Export To South America

GLG Expert Contributor — Sun, 08 Nov 2009 05:47:57 EST

Global fertilizer demand is on the move and Qatar being a major urea producer is looking to explore new markets.

Rio Investment in Ivanhoe provides geographical advantage but not control

GLG Expert Contributor — Sat, 07 Nov 2009 23:26:04 EST

The Oyu Tolgoi copper-gold project is the primary focus of Ivanhoe Mines in Mongolia. Rio Tinto's investment in Ivanhoe provides Rio entry into an advanced stage major mineral project. With similar conditions in neighboring China and Russia, major project experience in Mongolia will be advantageous to Rio in other projects. However, the region is not homogenous, other companies already have and are establishing positions, and Rio's experience will be helpful to it but will not preclude others.

Millions Of Canadian Salmon Still Missing

James Aliucci — Sat, 07 Nov 2009 13:34:32 EST

We have no idea what happens to the salmon when they go out to sea, but they always return. Well, up until now they have returned, this year they did not. This has had a devastating and ruinous effect on a billion dollar fishery in Canada. The sockeye salmon appear to have just disappeared. The appropriate Canadian authority is out to find the answer, they also should seek a solutions, looking forward, for the industry as a whole.

3Q2009 An Ugly One For Refiners

GLG Expert Contributor — Sat, 07 Nov 2009 13:13:31 EST

Weak demand has hurt the profitability of refiners.

Is Chinese demand for dry cargo as sustainable as industry analysts claim?

Diran Majarian — Sat, 07 Nov 2009 11:30:47 EST

Despite the global financial crisis, this year has seen some revival in dry cargo rates, especially for Panamax and Capesize vessels. This has led to some renewed investor interest in the sector, notably by Peter Georgiopoulos. The investment thesis rests on Chinese growth potential. Chinese analysts tend to be more reserved. They see significant barriers to expansion in the hinterland and have mounting concerns over misinvestment and asset bubbles, jeopardizing future financial stability.

Halliburton to coax more oil out of largely depleted Ghawar field

Michael Lynch — Sat, 07 Nov 2009 10:55:12 EST

Halliburton was awarded a five year integrated turnkey contract for Ghawar field. Work will be performed in Uthmaniyah, Haradh, Hawiyah and Shedgum. Halliburton will provide drilling rigs, directional and horizontal drilling tools, logging, cementing, mud engineering, perforation, completion and well construction services. Halliburton will engineer and manage the entire drilling operation.Three to four rigs will drill and complete between 153 and 185 oil and water injection wells.

SHALE GAS FROM USA to EUROPE EXXON FOLLOWS THE LIGHTS

GLG Expert Contributor — Sat, 07 Nov 2009 08:23:18 EST

Shale Gas has become a target for exploration and development in Lower Saxony, Mako Trough, Baltic, East Paris, Weald, Vienna, Cambrian Alum and Dadas in Turkey by companies like ExxonMobil, Shell, OMV, Falcon Oil and Gas, 3Legs Resources, Toreador Resources and EurEnergy Resources.

BPC To Export Potash to China

GLG Expert Contributor — Sat, 07 Nov 2009 05:51:39 EST

China is the largest consumer of potash and has to import most of it from different countries. BPC is negotiating with China to export potsh.

Class 8 Truck Prebuy Is Coming To An End - 2010 Skepticism Here!

Jay Thompson — Fri, 06 Nov 2009 15:57:05 EST

FTR Associates President Eric Starks shows North America Class 8 October order numbers at 21,792 trucks. This is a rate more triple than we were seeing February through July of this year - ranging 6,000-8,000 per month and double the August and September numbers. My friend Eric knows the numbers better than most, so we’ll offer some customer comments as to why.

Green Jet Fuel Critical for U.S. Military & Energy Independence

GLG Expert Contributor — Fri, 06 Nov 2009 12:51:24 EST

As stated in this original article, oil consumption for aircraft, ships, ground vehicles and facilities makes the U.S. Department of Defense, and namely the U.S. military, the single largest oil consumer in the world. Military biofuels are critical for lessening the country's dependence on foreign oil, and research has been underway at leading companies and universities over the last several years to solve this problem.

A major player in diamond production from West Africa?

GLG Expert Contributor — Fri, 06 Nov 2009 12:42:59 EST

A business combination in the form of a takeover of Western African Diamonds Ltd by Stellar Diamonds Ltd will have little impact on the diamond producing countries of West Africa. Production will remain small in volume and revenue. The combined company as a pure diamond company may have increased attractiveness to investors. Renewed interest in Western African diamond deposits is good for the local economies and people.