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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (102485)	6/10/2008 3:23:45 PM
From: elmatador	Respond to of 206329

"15 wells were drilled to pre-salt layers over the past two years for a total cost of $1 billion. The first of these wells demanded a full year and cost $240 million. According to Nepomuceno, (Petrobras Corporate Executive Manager Francisco Nepomuceno Filho says in an exclusive Offshore interview.) Petrobras now drills an equivalent well in 60 days for $60 million. “The main cause of the reduction of the drilling cost was the reduction of the drilling time and this has been possible mainly due to the learning curve,” he explains. offshore-mag.com

To: Paul Senior who wrote (102485)	6/13/2008 7:00:50 AM
From: aerosappy	Respond to of 206329

Raymond James Energy Monthly - June Sector Overview and Highlights {let me know if you want the attached Adobe file} Crude Oil: Crude continued to run in May, jumping another 12%. Following a brief pullback in late May, oil soared over $10/Bbl on June 6 - the largest one-day absolute gain in history - setting a fresh all-time high near $140/Bbl. Sustained weakness in the dollar and geopolitical concerns continue to benefit crude. Natural Gas: Gas continued its nearly linear movement since the beginning of February, rallying another 8%. In fact, current prices of over $12.50/Mcf are the highest since the hurricane-inspired rally late in 2005. That said, gas remains well below BTU parity (6:1 vs. oil), reflecting the relatively greater tightness in the global oil market. Stocks: Bolstered by ever-escalating commodity prices, energy indices continued to outperform their broader market brethren. The OSX and S&P E&P 1500 Index were up 7.3% and 5.2%, respectively, compared to the S&P 500's 1.1% gain and Dow Jones' 1% decline. Raymond James' Energy Outlook: On June 2, we raised our 2008 natural gas price forecast from $8.00/Mcf to $10.00/Mcf, based on our view that bullish y/y liquefied natural gas (LNG) comparisons will support U.S. gas prices through the end of July. Nevertheless, we still see some risk to late summer gas prices relative to current levels. Our updated gas model shows that the U.S. will be on the verge of full storage and production shut-ins (potentially resulting in sharp price deterioration) if it experiences normal summer weather (10-year average). Warmer than normal weather will increase gas demand and may prevent full storage, while cooler weather all but guarantees full storage. Either way, the outlook for 2009 remains bearish given strong U.S. core supply growth, with coal setting a floor for gas; hence, we slightly raised our 2009 forecast from $7.00/Mcf to $7.50/Mcf, which is ~$4/Mcf below the futures strip. On the oil side, our outlook has consistently been more bullish than the Street, but even we have continually underestimated oil prices. Despite falling OECD oil demand and signs of slowing non-OECD demand growth, oil prices have remained unexpectedly high. Long term (next one to five years), these prices are justified by solid supply/demand fundamentals. Short term, the huge upswing in the overall commodities market and depreciation of the dollar are supporting high oil prices, offsetting fundamental concerns over weakening demand, though a correction is a possibility. As a result, we raised our 2008 oil forecast from $100/Bbl to $110/Bbl. Next year, we see demand rebounding and non-OPEC supply growth continuing to stagnate, hence the increase in our 2009 forecast from $110/Bbl to $130/Bbl.