Sunday, September 18, 2011

China invests billions in oil sands

China invests billions in oil sands Robert Lee, a lab technician at ConocoPhillips' Surmont oil sands project in Alberta, examines a vial of water and oil sediment. Looking on is Perry Berkenpas, vice president of oil sands operations for ConocoPhillips Canada. / HC Dealmaking For decades, U.S. and Canadian companies were the biggest investors in Canada's oil sands reserves. But other countries, led by China, have poured billions into Canada's oil sands projects in the past few years. 2005 China's CNOOC buys 17 percent stake in Calgary-based MEG Energy Corp. 2010 PetroChina International Investment Co. buys 60 percent working interest in Athabasca Oil Sands Corp.'s MacKay River and Dover oil sands projects. Sinopec (China Petrochemical Corp.) buys ConocoPhillips' 9 percent stake in Syncrude Canada, the world's biggest oil sands producer. China Investment Corp. buys 45 percent stake in an oil sands project owned by Penn West Energy Trust. Thailand-based PTT Exploration and Production buys 40 percent share in Statoil's Kai Kos Dehseh oil sands project. 2011 CNOOC acquires the bankrupt OPTI Canada, whose main asset was a 35 percent working interest in Nexen's Long Lake oil sands project. Source: Houston Chronicle research HED HERE This is a precede. This is a precede. This is a precede. Ludbcvude : Ednvu ef9we ewfje9 edcedh Mu xhcdhc: Aduiduhuw ue hfewfuehuh Ehdfcwehfh: Xewh ewhjwh9e hbb sxjbckjcjc ixsbsc This is my source line right here. Page 1 of 1 FORT McMURRAY, Alberta - As U.S. companies look toward oil riches in northern Canada, they're encountering increasing competition - as well as some much-needed cash infusions - from the Far East. U.S. and Canadian companies have dominated Alberta's oil sands for decades. Now, though, Chinese firms are rushing to snap up Canadian oil sands resources and invest in ongoing projects - to the tune of $15 billion in the past 18 months in Alberta alone. They are motivated by a desire to jump into one of the world's lowest-risk oil investments and to quench the exploding energy demands of Asian markets - even though getting the product from Canada to Asia is just a pipe dream now. The foreign funding can help pay for what research firm IHS CERA estimates will be $100 billion in spending on oil sands projects over the next decade. And for a growing number of U.S. oil companies, many based in Houston, the infusion of Chinese cash in Canadian projects is welcome funding for some capital-intensive oil sands projects. "Many of the actual oil companies - no matter where they are from - are very interested in partnering," said Jackie Forrest, the Calgary, Alberta-based head of oil sands research for IHS CERA. "That can help raise capital and, in some cases, also bring expertise and knowledge to the partnership." Most of the recent deals have been by Chinese companies buying shares in existing projects. For instance, Sinopec spent $4.65 billion last year buying ConocoPhillips' 9 percent stake in Syncrude Canada Ltd., the world's biggest oil sands producer. And earlier this summer, state-owned CNOOC spent $2.1 billion acquiring the bankrupt OPTI Canada, whose main asset was a 35 percent working interest in Nexen's Long Lake oil sands project in Alberta. Plants want to expand That influx of capital can help companies ramp up production and expand operations at existing projects, said Alberta Minister of Energy Ronald Liepert. "Plants that are currently 25,000 barrels a day, they want to expand to 100,000 barrels a day, and they don't have the capital to do that," he said. "So they're actually on the prowl for investment - and there's real money in China." China isn't the only country getting into the oil sands game from across the Pacific. Companies based in Thailand and Australia also have made plays recently for Canadian oil sands projects and portfolios. Major draws are the low geological risks of Canada's well-explored oil sands, and the nation's political stability. "You know the oil is there, so the risk is more in executing the project, getting it online and getting the capital associated with building the project," Forrest said. The Canadian market offers fewer barriers, said Nick Olds, the senior vice president of oil sands for ConocoPhillips Canada. "With the oil sands, you've got a significant resource - 173 billion barrels of oil recoverable with current technology, and that's only going to get better," Olds said. "If you look at other areas of the world," he said, "it is very difficult to get access to (the) resource." By contrast, the oil sands in Canada are "not state-controlled and they're not government-owned." The "oil" in the Canadian oil sands is bitumen, a hydrocarbon that is as hard as a hockey puck at 50 degrees and can be refined into synthetic crude oil or other products. The oil sands in Alberta are a mixture of sand, water, clay and bitumen that is extracted by open-pit mining and by less invasive in situ techniques that use heat to draw the bitumen directly from the underground reservoirs. Canada's oil sands bounty makes it second only to Saudi Arabia in its reserve base. Its recoverable oil is estimated to be more than 10 times U.S. reserves. Since China doesn't have similar oil sands deposits, the Asian companies investing in Canadian crude aren't so concerned with getting technology and know-how out of their deals. Instead, they are getting the promise of strong returns and the chance of eventually sending some of that oil home. "There is a long-term plan to get oil to the East, and it will happen," said Liepert, the Alberta energy minister. Right now, the only real export market for Canada's crude is the United States. But the Midwest refineries that are served by existing border-crossing pipelines are expected to reach their maximum capacity for processing the northern oil supply by 2015, according to IHS CERA. Plans for pipeline Asian markets loom as a new and promising opportunity for oil sands developers eager to command global prices for the product, but there is no immediate avenue to deliver the crude to Asia. The most likely corridor - the Northern Gateway pipeline proposed by Calgary-based Enbridge - has been ensnared in disputes with environmentalists and indigenous communities worried about damage from oil spills. Last month Enbridge disclosed it has enough contracts with shippers to fill the pipeline, which would transport crude 731 miles from Alberta to Kitmat, B.C., for tanker transport to Asian markets. Although Enbridge isn't saying what companies have signed up to use the pipeline, China's Sinopec has confirmed it is helping to finance the $5.5 billion project. A new avenue to Asian markets also would benefit U.S. oil companies with big Canadian crude reserves, including Exxon Mobil, ConocoPhillips and Shell. If it gets past regulatory hurdles, the pipeline could be completed as early as 2017. "We want to become a global energy superpower," said Liepert. "And you're not going to become a global superpower of anything with one customer." source

Friday, September 16, 2011

FOREX Euro down after rally this week, still in downtrend, what's next?

Today I visited and reading an article about forex and I found this article, Euro down after rally this week , still in a downtrend. Then what will happen next, especially in this week? OK we read the news first! The euro dropped on Friday, as investors locked in profits after this week's rally sparked by global central bank action to boost liquidity, and could stay weak on any negative news coming out of an EU finance ministers' meeting. Analysts said investors also sold the euro, pushing it to session lows against the dollar, after the Bank of Portugal said the Portuguese island of Madeira failed to report information about debts from previous years that amounted to 0.5 percent of gross domestic product in 2010. [ID:nLDE78F07C]. "We had a pretty good run-up in euro/dollar the last couple of days from $1.37 to $1.39 because of positive news this week. So we've had a bit of a short squeeze," said Ray Attrill, senior currency strategist, at BNP Paribas in New York. However, he added that market players remained bearish on the euro and those expecting any new policy initiatives from the European Union finance minister's meeting will be disappointed. The euro was last down 0.5 percent at $1.38081 EUR=EBS, off a one-week peak of $1.39370 hit on Thursday but held above a seven-month trough below $1.35 plumbed on Monday. The euro has gained around 1.8 percent so far this week, its best weekly performance since the week of July 24 on trading platform EBS. It fell to a session low of $1.37530, with traders saying it extended losses after stop-loss orders were triggered on the break of $1.37700, with more stops at $1.37500. Overall though investors were reluctant to take large positions ahead of the outcome of an EU meeting in Poland, at which Treasury Secretary Timothy Geithner is a participant. Geithner told EU finance ministers on Friday they should end loose talk about a euro zone break-up and work more closely with the European Central Bank to tackle the debt crisis. He also said Europe would not see similar global financial coordination as there was in 2009, but that Washington would do what it could to help. For more, see [ID:nL3E7KG0KC]. Technical charts indicated the euro could find support around $1.3738, the 23.6 percent retracement of the fall from $1.45500 on Aug.29 to $1.34949 on Sept.12. The euro had hit a one-week high after a coordinated move by central banks on Thursday to provide dollars. Funding strains, evident through the cross currency basis swap market, which had hit some euro zone banks, including large French banks and were impacting the euro, had appeared to be easing. The three-month euro/dollar cross currency basis swap EURCBS3M=ICAP, or the relative premium for swapping euro LIBOR for dollar LIBOR tightened to around minus 88 basis points from on Friday, a day after the action from global central banks. It narrowed from as wide as minus 115 basis points on Monday. Wider spreads reflect elevated demand to borrow U.S. dollars in the currency forward market and often supports the greenback's spot value against the euro In the options market euro/dollar month implied vols - measure of investor demand to protect against spot price volatility - were steady around 14.20 percent and off this week's high of around 18 percent EURVOL. FED EASING EYED While investors remain wary of the euro, they are also reluctance to take long positions in the dollar ahead of a Federal Reserve meeting next week, where policymakers may flag another round of quantitative easing to boost the economy. That move should weigh on the dollar and help riskier assets rally, although analysts said some market players thought "Operation Twist" was the more likely outcome. In such a scenario the Fed would buy longer dated Treasury bonds and sell shorter dated ones to keep rates at the longer end lower without expanding the balance sheet. Daragh Maher, FX strategist at Credit Agricole in London said the "Operation Twist" could be positive for the dollar because it would stimulate growth. "It would be seen as delivering stimulus without printing....dollars." The ICE Futures' dollar index was last up 0.4 percent at 76.551 .DXY. Against the yen, the dollar remained stuck at 76.730 yen JPY=EBS, flat on the day. The threat of Japanese intervention has helped keep dollar/yen in a tight range and above its all-time low of 75.94 yen. (Additional reporting by Anirban Nag in London; Editing by Theodore d'Afflisio) source

Saturday, August 27, 2011

Franc Falls as Bernanke Improves Sentiment on Markets

Hi All today I check this blog and want to read somethink but I can't so.. I just copying this news about Franc Falls as Bernanke Improves Sentiment on Markets!!

You can read the news bellow!

The Swiss franc slumped today after Federal Reserve Chairman Ben. S. Bernanke spoke today, improving sentiment on markets, while rumors abound that Switzerland’s policy makers are preparing another action to weaken the Swiss currency.

There are different opinions on what steps Switzerland is going to take in order to weaken its currency. Some analysts speculate that the Swiss National Bank is preparing another intervention. Some experts predict that local banks may impose charges for franc deposits. Whatever the truth is, the rumors undermine franc’s strength.

Optimism, caused by the speech of Chairman Bernanke, influenced the franc even more, perhaps. Jeremy Stretch, head of currency strategy at Canadian Imperial Bank of Commerce, thought:

What Bernanke said suggested was perhaps the world’s economic weakness is not so bad that it warrants another round of QE, and that helped to damp demand for the franc. There has also been speculation about the SNB’s possible further action on the franc, which makes the market cautious.

USD/CHF climbed from 0.7928 to 0.8060 as of 20:11 GMT today after touching the daily high of 0.8157, the highest level since July 22. EUR/CHF advanced from 1.1401 to 1.1684. CHF/JPY sank from 97.61 to 95.05, while earlier it reached the lowest price since June 20 — 94.44.

If you have any questions, comments or opinions regarding the Swiss Franc, feel free to post them using the commentary form below. source:

Friday, March 4, 2011

Fed buys $1.5 bln in TIPS; Treasurys stay up

NEW YORK (MarketWatch) -- The Federal Reserve Bank of New York bought $1.5 billion in Treasury Inflation Protected Securities on Friday, as part of a program that is the centerpiece of the Fed's easy monetary policy. Dealers offered the Fed $4.261 billion debt maturing from 2013 through 2041. After the buyback, Treasurys stayed higher. Yields on 10-year notes, /quotes/comstock/31*!ust10y (UST10Y 3.51, -0.04, -1.15%) , which move inversely to prices, fell 5 basis points to 3.51%