GLG News(sm): Energy & Industrials

Vought Goes Boeing

Doug McVitie — Thu, 09 Jul 2009 05:12:29 EST

Ah, the problems that exist when you have a backlog of 860 or so aircraft before your new design has even flown. Would that other, lesser manufacturers had such problems...

Oil Companies Should Be In Some Alternative Energy Markets - Eventually

Jay Thompson — Wed, 08 Jul 2009 23:56:13 EST

BP downsizing their alternative energy investment arm is putting them in line with other majors. While they are lessening their activity in some areas, they continue in others where they make sense. As an active partner in an alternative energy company and having been in many meetings with majors, I have understood and reluctantly agreed with their lack of enthusiasm to get too involved in the alternative sector - yet!

BOEINGs strategic move in acquiring Vought Facility- A breather for Dreamliner project !

Koustav Dhar — Wed, 08 Jul 2009 13:40:19 EST

> Boeings decision to acquire strategically the Vought facility is one of the few re-assuring messages for the Dreamliner customers who have been waiting for last two Years ( since AB 380 launch ) for real story and some breather to the existing charade yet the stoic facade of Boeing. >Vought Aircraft Industries has found itself at a convergence zone of declining production output by airframers that is likely to cause significant financial pain to the company in 2010. > Vought had already been struggling financially while the industry had been thriving and the economic downturn only served to stifle that rebound.

Hot Dry Rock Geothermal Energy - Too Clean, Too green, Too Abundant to Ignore!

Dennis Campbell — Wed, 08 Jul 2009 13:13:55 EST

The recent New York Times article highlights the massive potential of Hot Dry Rock Geothermal energy (or Engineered Geothermal Systems -EGS), and raises public awareness of this unique and virtually untapped source of energy. Unfortunately, the article also may trigger undue fear and anxiety by focusing on one particularly flawed example and failing to explore the broader range of technical options for accessing this abundant and renewable energy resource. The public deserves a fair and balanced discussion of the technology and all of its implications.

Supply Chain Control, Scale Up Option or Rework Facility?

Robert Mann — Wed, 08 Jul 2009 13:13:30 EST

Boeing's acquisition of the Vought 787 composite fuselage facility portends several possible options: greater control of the 78s program's global supply chain. an option to more rapidly scale construction and thus catch up with delayed order backlog, and if needed following re-evaluation of 787 center section/sidewall structural deficiencies, an option on a major composite rework facility. We should know within weeks what Boeing believes to be the 787 center section rework requirements and this will likely shed light on the future of the Vought facility.

The A350 Will be Funded

Ernie Arvai — Wed, 08 Jul 2009 13:12:34 EST

The EU cannot afford to have Airbus fail.Continued state support will continue, but evolve in form.Airbus will obtain the $15.4 Billion US required to develop the A350

Wind Power and Infrastructure

William Downey — Wed, 08 Jul 2009 13:10:59 EST

Citing infrastructure and capital markets issues T. Boone Pickens, chairman of BP Capital Management is being "less aggressive with the Panhandle project". Planned to generate 4,000 megawatts of electricity, in effect the Pampa Wind Farm Project was designed as the world's largest wind farm.

CGGVeritas Tri-Parish 3D survey will find many uses in years to come

Michael Lynch — Wed, 08 Jul 2009 12:50:22 EST

The Rigzone Newsletter reported on a CCGVeritas press release of July 7 in which the company announced that it is now acquiring the 3D multi-client survey in northern Louisiana. The 677-square mile wide-azimuth survey will be the largest one so far in the Haynesville. It is expected that hundreds of horizontal wells will be drilled in the north Louisiana-East Texas region. Numerous operators will have access to the state-of-the-art survey. Two crews will operate 7,000 channel seismic recorders during the next 12 months. The configuration is specially designed to enable fracture detection. The original participants will receive 3D processed volumes as each phase is completed. Colin Murdoch, CCGVeritas Executive Vice President for the North America region noted that the U.S. Gulf Coast has been a focus area for the company for 10 years. He expects the Haynesville shale play will be a key part of their data library. The play is estimated to hold more than 160 trillion cubic fee

Mining in Chindia is booming but it is only the first step.

Jay SirDeshpande — Wed, 08 Jul 2009 08:09:32 EST

The mining industry continues to enjoy a boom period in the near future. Chindia will countinue to benefit from this boom. Naturally, mining the raw material is only the first step; the concentrating the ore, transportation and most importantly recovery of the mined land are equally important. This requires futher investment. Public and private initiatives are vital.

Boeing Makes Smart Move for Vought Facilities

Saj Ahmad — Wed, 08 Jul 2009 06:02:41 EST

Boeing’s decision to finally make a move for the South Carolina facility from Vought is a delight to discuss – but what motives does the company have for making this move?

Shutting down Alt. Energy HQ does not mean complete exit from the Green Arena

Edward Moran — Tue, 07 Jul 2009 18:05:35 EST

The shutting down of BP London Alternative Energy HQ is a simple measure of cost reduction in times of financial crisis and global economic instability. The exit from the solar and wind segments of alterntative energy is very well timed and synchronized with the alternative energy HQ: Both wind and solar areas are not part of BP core business but they did look good on the green banner and part of the slogan Beyond Petrolium. Both wind and solar are almost matured technologies but still not economically viable and can only make economic sense with government subsidies and grands. On the other hand, BP alternative energy activity in the area of biofuels is alive and well in Brazil. This is the only segment of alternative energy which is in line with BP core business of gasoline production and distribution.

Weyerhaeuser dividend cuts appear necessary, but there are hurdles to conversion to REIT

Charles Klass — Tue, 07 Jul 2009 18:05:14 EST

Weyerhaeuser announced that its quarterly dividend is being reduced from $0.25 to $0.05 per share. The firm also said it was making progress toward reorganizing as a REIT. Conversion to a REIT may have some downsides.

Diana Shipping is upgraded

Diran Majarian — Tue, 07 Jul 2009 14:01:45 EST

I have long been a fan of Diana Shipping because of its restrained expansion policy in boom times, strong balance sheet with low leverage and good liquidity and its conservative chartering policy. This was very unfashionable in boom times and some felt that CEO Simos Palios was a poor steward for his shareholders. They found the block deals at record prices and substantial debt leveraging of its peers more exciting. They discounted asset impairment charges and loan restructuring as of no consequence to shareholder value. In these times of crisis, however, Diana is well placed to survive and profit.

Is TOPS still a going concern?

Diran Majarian — Tue, 07 Jul 2009 12:17:35 EST

After recently publishing a piece on Top Ships (TOPS) signing a deal with Yorkville Advisors to sell up to US$ 200 mio in new shares as part of a US$ 500 mio shelf registration, Tradewinds is now reporting that the company auditors - Deloitte, Hadjipavlou, Sofianos and Cambanis - have raised "substantial doubts" about the ability of Top Ships to continue. They point to the company's negative working capital position, minimum asset cover ratios and other loan covenants on more than $342 mio in debt, nearly US$ 290 mio of which has been declared current because of the covenant breaches because the breaches impact other loans with so-called cross-default provisions.

BP looking only money not clean Environment in UK/ WORLD

Chandra Nair — Tue, 07 Jul 2009 09:39:49 EST

Now , BP having Iraqi oil fields, And also BP saying that there were 1.258 trillion barrels of proven oil reserves left in the ground, enough to supply the world for 42 years at present production rates. It said that reserves of gas were sufficient for 60 years and coal for 122 years

Government functionaries mystified by volatility in crude oil markets

Michael Lynch — Tue, 07 Jul 2009 07:49:04 EST

Jad Mouawad reported in the July 6 issue of the New York Times that volatility has gripped oil markets for 18 months. Instability of oil and gas prices puzzles government officials and policy analysts. A wild run up to $145/bbl in mid 2008 ended with a price collapse to $33/bbl in December. Laura Wright CFO at Southwest Airlines which hedges jet fuel prices called "extreme volatility an understatement". The gyrations have rippled across the economy forcing automakers into bankruptcy. Households, under credit pressure, monitor discretionary spending. The recent rise in the price of crude oil to $66/bbl has caused new debate about the role of speculation in the markets. Government officials around the world are worried about the possibity of a new surge. At Southwest Airlines fuel accounts for about a third of the company's operating costs. Automobile showrooms have emptied as gasoline prices rose. Jeroen van der Veer, (recent Shell CEO) remarked that "Oil has never been very stable."

One of many restructuring steps

Ian Davenport — Mon, 06 Jul 2009 18:16:55 EST

Dow takes actions to get balanced. Situation worsens for others as a result. More closures will follow. This may smooth the way for new Middle East producers.

China's Shandong Chenming Seeks To Become #1

Dave Hillman — Mon, 06 Jul 2009 18:16:28 EST

Zhangiang Chenming is part of Shandong Chenming Paper Holdings Ltd. In 2008 their paper production capacity was over 3 million tons, turnover was EUR 2 billion and with 17,000 employees. This huge new paper machine will greatly increase their overall capacity and could push them into a leadership position as far as UFS and CFS are concerned. APP and APRIL are both also huge but their grades include packaging board, tissue and toweling. Building a new paper machine with this huge capacity is a tangible expression of what their growing middle class is expected to consume in the next decade. This machine is to be backed up by a greenfield pulp mill but it is questionable whether or not it can supply both long fiber and short fiber in the quantities required. It is not unreasonable to assume this machine will require many tens of thousands of tons of grades like acacia, eucalyptus and long fibered Radiata Pine and NBSK.

Sustainable - Alternate - Renewable Energy: What are these terms being applied and used in them Media ?

George Dzurina — Mon, 06 Jul 2009 14:01:37 EST

It seems these terms are being used widely throughout the media so what are the difference between them. Well this depends on who the author is and what sector they are looking to appeal to.

Lowering the Green Flag, Raising the White One

Mark Burger — Mon, 06 Jul 2009 12:33:17 EST

Like waking from a fitful dream, BP's recent announcement of deconstructing their alternative energy program marks the end of an era. This should not be surprising for those who have observed their green activities. It may simply be that their corporate heart wasn't in it.