GLG News(sm): Energy & Industrials

Pollock front and center again, despite no one knowing why

James Aliucci — Fri, 20 Nov 2009 17:36:56 EST

The latest prediction on the Total Allowable Catch totals for the USA pollock industry for 2010 appear to be solidly in favor of lowering them once again. This makes Greenpeace happy (not really) but is bad news for the industry as a whole. Jobs will be lost, companies may be headed for continued hard times. Yet most consumers of fish say, so what, I never eat pollock. How wrong they are.

Commodity Index Funds to Change Asset Allocations - Big Corn Changes

GLG Expert Contributor — Fri, 20 Nov 2009 17:29:13 EST

DJ / UBS announced changes in their commodity index allocations. The new allocations will likely push corn much higher, and the oil refining spread narrower.

Terra In Play, not the End Game

GLG Expert Contributor — Fri, 20 Nov 2009 17:22:04 EST

Far from "the End Game" as reported by NYTimes author, the CF vote is more likely the beginning of an auction for Terra.

Emerging Trends in Intelligent Transportation Systems

GLG Expert Contributor — Fri, 20 Nov 2009 15:06:41 EST

Linking to my own recent article in the launch issue of Thinking Transit discussing ITS trends for the coming decade (at p. 8 of online version linked above).

A turnaround for Aries?

Diran Majarian — Fri, 20 Nov 2009 12:08:23 EST

New CEO Michael Zolotas and CFO Allan Shaw recently gave a presentation of their plans to turn around Aries Maritime (RAMS) and use it as a platform for growth. They talked about recapitalization, fleet mix, in-house technical management, chartering strategy, steamlined GA costs and the new management team. Their new focus is on dry cargo and product trades. They have dropped in six additional units from GrandUnion and recapitalized with US$ 36 equity and US$ 182 mio new debt. Let's evaluate.

Are carriers purchasing more trucks for there fleet?

GLG Expert Contributor — Fri, 20 Nov 2009 11:41:19 EST

In this economy would it be prudent to purchase a larger amount of fleet vehicles for a national carrier or a mom and pap’s transportation company?

Petrobras has potential to corner latin American LNG market

Michael Lynch — Fri, 20 Nov 2009 09:31:21 EST

A spokesman for BG Group said that 40 trillion cubic feet of natural gas can be recovered from Tupi, Iara and Guara oil discoveries offshore Brazil. The three fields contain between 9.1 and 14 billion barrels of oil equivalent. They will transform Brazil into a major oil exporter in the next decade. Confirmation of sizeable gas reserves will quadruple Brazil's proven reserves. The natural gas could be used for domestic power generation. Last week Sao Paulo suffered a major electric blackout.

Obama's Speech in Beijing Promoting Shale Gas Development in China

GLG Expert Contributor — Fri, 20 Nov 2009 01:29:02 EST

Sino-US collaboration to develop shale gas resources in China was included in both the two countries joint statement and President Obama's speech at the press conference. All the driving elements are now gaining sufficient strength to vigorously and quickly push shale gas development forward in China. Those unconventional gas supplies would significantly change the current conventional view on China’s gas future with totally different future gas scenarios.

Truck Order Predictions Pretty Well Laid Out Through 2010

Jay Thompson — Thu, 19 Nov 2009 17:03:00 EST

In the midst of the optimism with the recent surge in truck orders, reality is setting back in that 2010 truck orders will be slow due to the mew emissions rules - again! We have written several articles over the last 6-months about the slow truck sales marketplace leading into the current prebuy. So here’s a look ahead....

New Policies Aid U.S. in Cleantech Race

GLG Expert Contributor — Thu, 19 Nov 2009 13:13:16 EST

As noted in this core article, the new U.S.-China partnership coupled with the Solar Manufacturing Jobs Creation Act will enhance America’s competitiveness in the cleantech race- not to become simply be a consumer of renewables to meet greenhouse gas emissions standards, but a producer as well.

Marginal oil and gas operations disappearing in wake of financial downturn

Michael Lynch — Thu, 19 Nov 2009 10:49:41 EST

Chevron announced that it is dropping a program to develop more oil from aging Cook Inlet. The production workforce will be reduced by 10 percent. A statement issued by the company cited "difficult economic conditions." The company will continue to operate some platforms. Chevron said the Cook Island business would contract because of production declines, high lifting costs, financial issues and volcanic activity. Total oil production from the region is 8,500 bbl/day.

Pest Management and Rice Production

GLG Expert Contributor — Thu, 19 Nov 2009 06:52:16 EST

Integrated pest management is the key to producing good crop using relatively less amount of pests.

It Will Definitely Redefine the Market Place

GLG Expert Contributor — Wed, 18 Nov 2009 16:03:52 EST

Anytime one company can take steps to improve their position it will cause a shock wave in the industry. E.ON's aggressive action protects their future to a certain degree but raises questions as to the problem of what affect will the additional nuclear waste have on the environment.

Feed Grains, Seed, Fertilizer, and Chemicals Outlook 2010

GLG Expert Contributor — Wed, 18 Nov 2009 13:52:32 EST

US planted surface area for corn will likely rise over 90 million acres increasing demand and prices for crop inputs in 2010.

Market Favors CF in Nitrogen War

GLG Expert Contributor — Wed, 18 Nov 2009 12:40:21 EST

The market has a low return for CF buying Terra and it is much lower than an Agrium tender. Thus the market thinks CF will win in this war. Cash is King. ...but it could take another year to get enough Board members to vote a solution.

Abu Dhabi looks to build its petchem activities

Paul Hodges — Wed, 18 Nov 2009 08:36:48 EST

The Middle East is continuing to grow its role in petrochemicals. The latest move is by Abu Dhabi, to access technology for its ambitious new multi-$bn Chemaweyaat project.

Superabsorbent Dilemma at Rabigh?

Ian Davenport — Wed, 18 Nov 2009 08:08:02 EST

Cross ownership and a necessity to access key raw materials complicate the discussion. It is necessary to consider the history and current status of participants in the Acrylic Acid - Superabsorbent product chain.

Solar Tower Technology is Uneconomical and Unviable in US

GLG Expert Contributor — Wed, 18 Nov 2009 02:43:29 EST

Solar Tower Technology is not a new phenomenon. Further developments on this technology have been done over the years, but the underlying fundamentals remain the same:- High upfront investment and long gestation periods and a regime of cheap interest rates.A case for solar tower technology may be made for desert areas like Nevada. But the key risks are:- Escalations in operations and maintenance costs over a period of time.- Better alternative technologies.

Fossil Fuel Technologies Emphasized in US China Energy Co-operation

Frank Chu — Wed, 18 Nov 2009 01:02:40 EST

In a joint declaration, President Obama and President Hu of China announced a package of co-operation initiatives on clean energy to deal with the issue of climate change and oil dependance. While the 7 initiatives cover a wide range of actions and technologies from joint R&D, energy efficiency standards, wind, solar, biofuel and electric vehicles development, etc, the major emphasis appears to be on the efficient use of fossil fuel and carbon capture technologies.

Savvy Trucker JB Hunt Heads East, By Train!

Thom Williams — Tue, 17 Nov 2009 17:37:19 EST

Truckers traveling via train? Yep, the smart ones do so with increasing frequency. Earlier this month, J.B. Hunt Transport Services Inc. announced that its already successful “Secret Formula” for Intermodal success will henceforth include much more of a current ingredient, one known as “NSC” or Norfolk Southern Corporation, which reported Intermodal revenues for this year’s 1st nine months of just slightly less than JBHT’s $1.2 billion of Intermodal biz. for the same three quarters.