According to PeakOil -> International Herald Tribune

MEXICO CITY: The chief executive of Mexico state oil monopoly Petroleos Mexicanos, or Pemex, said Wednesday the company expects production at its Cantarell oil field to decline by an average of 14 percent a year between 2007 and 2015.

Speaking to members of the Senate Energy Committee, Luis Ramirez Corzo said the average annual decline is equivalent to about 150,000 barrels a day.

The offshore Cantarell, Mexico’s largest source of crude oil, began declining in 2005 from a record 2.13 million barrels a day in 2004.

Ramirez Corzo said output at Cantarell is expected to average 1.8 million barrels daily this year. Pemex is aiming to substitute Cantarell’s declining output with production from other projects under way, he said.

- Lowem mentioned that The Optimist predicted 1% to 2% decline, the realist predicts 8% to 10% decline per year and the doomer says it’s more then 10% per year! WELL it ends up the decline is pointing towards the doomer side! Mexico was the 2nd largest oil producing country…and now they had announced this startling news! Peak Oil is coming!

According to Channelnewsasia :

NEW YORK : Oil prices rose strongly on Tuesday on global markets after news that bad weather had interrupted oil supplies at Alaska’s key export terminal, dealers said.

“The market remains sceptical towards OPEC,” said Calyon analyst Mike Wittner, who is forecasting the cartel to cut just 600,000 bpd of the 1.2 million bpd which it had pledged.

- Well, this is old news since October. The oil prices had not been able to push forward much at the market controlled price of US$60 per barrel. The strange thing is world consumption of oil continues to grow steadily as per normal and OPEC keep on saying wanting to cut oil production.

Let’s hope the world will not suffer together with oil price hike that will be likely if OPEC fufilled their cut in production. The reason of cutting production because oil prices is not good is crap…hiding the real reason for cutting oil production from the media. Well, let’s see how long they can give this reason to cut oil production!! Seek “Peak Oil” in any search engines to find the real reasons!

According to AsiaOne :

Mitsui & Co., Japan’s second-largest trading company, revealed today that a cover up on naphtha transactions in a falling market by a trader at its Singapore subsidiary caused $81 million of losses.

Agency reports said an internal investigation by Mitsui revealed that the 35-year-old rogue trader had hidden the losses, which as of Nov 17 represented about 10 times last year’s profits at Mitsui Oil (Asia) Pte. Ltd.

The unit trades more than half of all Asian naphtha, a product used as feedstock for petrochemical firms, said a Reuters report.

Reuters said the losses, while just 3 per cent of parent Mitsui’s forecast annual profit, prompted the firm to close all futures and derivatives positions across oil and petroleum markets at the unit, and recalled Singapore’s most infamous trading scandal, in which Nick Leeson tried to hide mounting losses on Nikkei futures, eventually causing the collapse of Barings Bank.

Takashi Yamashiro, deputy chief operating officer at Mitsui’s energy business unit told a press conference earlier today in Tokyo: “The significance of MOA’s existence has vanished as of today.”

A Bloomberg report quoted him as saying that Mitsui Oil had closed agreements to sell and buy naphtha, incurring the losses. All of the Singapore unit’s other positions in crude oil and fuel products were being closed and it would assess whether to continue the business in Singapore, which employs 32 traders for futures and physical crude and products, said Bloomberg.

Reuters said Mitsui’s disclosure comes as volatile oil and commodities markets claim a host of victims, from US hedge fund Amaranth Advisors, which lost US$6 billion on U.S. natural gas earlier this year, to the US$94 million loss on metals futures at Samsung Corp.’s Hong Kong unit in mid-2005.

The company did not name the trader in question, but said the trader had been working for Mitsui since 2001 and was the only person responsible for trading naphtha, according to Reuters. Mitsui has not fired him, said Reuters.

Still, Mitsui said it saw no change in its net profit forecast of 300 billion yen ($2.54 billion) for the business year to March 31, 2007. Before the news, shares in Mitsui ended down 0.3 percent at 1,491 yen, while the main Nikkei average ended flat.-The world need to disclose more such events to stop the illusion of growth….it’s time to work harder! Are growth and consumer confidence for investment that important than reality? Maybe for the corporation, but when such events comes out…many employees head will roll and loses their jobs!

“The Living End – Wake Up”

- I happen to chance upon this MTV and found it rather good music! The meaning behind the music is to wake up to the situation! The children in the MTV portray the latest generation under manipulation.  It’s the education that lead the manipulation and with the flashes of flags that represents events and pictures of weapons and planes with words like “lied”, “wake up”, “suicidal” and many more.

This song will also blend really well with the new generation as they suddenly found the release of that hidden feeling of being manipulated and resulted in tragedies….like school shooting. The problem with this society or world is everyone is manipulating everyone, in the business world we don’t discuss anything negative or bad for business…politicians don’t apologise for mistakes… history book can be manipulated in educational books… newspaper can cover up facts, Internet can be censored or blocked…

Listen to the lyrics and you shall be singing in in no time! Hypnotic to say the least!

Ok, why I put this mtv in a energy blog…well… the world is being manipulated right? WAKE UP! by “The Living End”

SYDNEY, Nov 14 (Reuters) – Canadian oil firm InterOil Corp. IOL.TO said on Tuesday a gas and condensate discovery in Papua New Guinea could hold at least 4 trillion cubic feet of gas, potentially the biggest discovery in the Pacific nation.

Chief Executive Phil Mulacek told Reuters the Elk-1 field, would be developed for a US$3 billion liquified natural gas (LNG) joint venture between InterOil, Merrill Lynch Commodities (Europe) Ltd. and private equity group Clarion Finanz AG.

“Third parties have said that the flow of the Elk-1 well is bigger than anything they have seen in North West Shelf,” Mulacek said in a phone interview.

“The indicative tests show that it field has at least 4 trillion cubic feet of gas and could underpin an LNG development.”

“So far, all tests results show that this could potentially be the biggest discovery in the history of Papua New Guinea,” he said.

While analysts in Canada said the discovery is promising, it is too soon to say if the Elk-1 find would be similar in size to recent discoveries such as Woodside Petroleum’s Ltd. WPT.AX Pluto field in Australia, which has 4.1 trillion cubic feet of gas.

Papua New Guinea’s proven gas reserves are over 15 trillion cubic feet.

“The (reserve) thickness is very, very encouraging, the pressure is abnormally high, and probably double what you would expect for a discovery this deep,” said Rob Moss, oil and gas analyst at Acumen Capital Partners in Calgary.

“To suggest there could be several trillion cubic feet, given the information currently available, is perhaps a little opportunistic,” Moss said.

SHARES SOAR

News of the find sent InterOil’s shares soaring on the Toronto Stock Exchange. The stock hit an intraday high of C$28.99 and closed 23.6 percent higher at C$27.93. The stock has advanced nearly 60 percent over the past six months.

“You can make projections and show possibilities, but I think it’s way too early to quantify what kind of find is in the ground,” said Ira Zadikow, analyst at Great Eastern Securities.

“It definitely increases the assets of InterOil, but if they don’t have a way of distributing it, or transporting it, or marketing it — it doesn’t do a thing for its revenues.”

Mulacek said the company will drill more wells on the Elk field and at nearby prospects to determine the size of the discovery.

The final results of the appraisal are expected to be released in the first half of 2007 and first deliveries are scheduled for early 2012, InterOil said.

A company drilling update on Monday said preliminary tests showed the field recording a gas flow of 21.7 million standard cubic feet per day at a flowing bottom hole pressure of 3,590 psi. The hole is 1,624 meters deep.

Mulacek added that preliminary tests indicate that there could also be a layer of oil under the gas and condensates.

Marketing of the LNG will be mainly handled by Merrill Lynch, which is supplying gas to customers in the United States, where it has access to pipelines and a LNG import terminal in Louisiana.

The LNG project will also be targeting customers in Australia and North Asia, he said.

InterOil, Merrill Lynch and Clarion Finanz each have about 30 percent stake in the joint venture.

- Hold your breath….it’s just initial estimate or “guess-timate”…. more drilling are required to determine the size and quantity available. Do remember the North Sea discovery in the 1960s that had also been quoted as biggest discovery (production was nearly 10 trillion cubic feet (280,000,000 m³) in 2001 and continues to increase) and only been exploited in the 1980s as it became economical to extract due to rising oil prices. 20 years later it peaked in 2004 and in terminal decline right now….making UK a net crude importer.

Well, when the world now required heavily on Natural Gas as the alternative to oil and coal for clean electricity generation….PNG (Papua New Guinea) will definitely get a sudden cash flow but risk over exploitation and peak much earlier then expected.

According to both AsiaOne and Channelnewsasia:

SINGAPORE: The Goods and Services Tax will be increased to 7 percent from 5 percent presently.

This was announced by Prime Minister Lee Hsien Loong in Parliament on Monday.

However, when the rise will be implemented, will be decided later.

Speaking in Malay, Mandarin and English, Mr Lee explained that the hike was necessary to finance the enhanced social safety nets, needed to help the lower income group and he emphasised that the offset package would more than counter the rise in GST.

While Singapore’s current model to tackle the widening income gap is sound, Mr Lee said the government would take on two approaches to deal with the new environment – to strengthen the safety nets and tilt the balance in favour of the lower-income groups who do not benefit from the fruits of economic growth.

To do this, government spending will have to go up. The government now spends some 15 percent of its GDP – one of the lowest in the world.

“This is inevitable over the next 5 to 10 years. Infrastructure investments will cost money – R&D is to cost $5b over the next 5 years; as medical technology improves, people age and more will go to hospitals to get more treatment, so spending is bound to go up. As we tilt the playing field across the board, the lower income will be getting another boost, not just once in a while. Therefore its better to start building resources now so that when we spend more, we have the means to do so,” said Mr Lee.

To finance this, indirect taxes or the Goods & Services Tax will have to go up.

“It will give us precious extra resources to implement social programmes like Workfare later on. Our aim is to help the lower income groups and the elderly, not to increase their burdens. When we implement the GST increase, it’s not just the GST increase, it’s the package which will fully offset the impact of the GST increase and begin to strengthen the social safety nets and tilt the balance in favour of the low income groups – we will not just raise the GST but we will have a comprehensive offset package,” said Mr Lee.

This package will be weighted more to the middle and the low income groups, especially the elderly, and it will more than offset the GST increase.

“It is not just an offset package to deal with the GST. It is a whole set of measures which we are taking in order to tilt the playing field in favour of the lower income group, which is what we have to add and tally in the balance, and my purpose is to help the lower income group. For the middle income, it will be generally about ok; for the higher income, I think the higher income should end up paying more overall. It’s part of being one society. I’m not going to tax 15% on income tax, I’m not going to tax 25% from GST the way the Scandanavians do, but I have to make the adjustments of 2% which I think is fair and I think Singaporeans will support,” added Mr Lee.

He explained that it is better to do the increase now when the economy is doing well, rather than wait till later. This will give the government time to see how this adjustment can be managed, and to cope better with the unknown forces of globalisation over the next 5 to 7 years.

More details of the GST increase will be announced on 15 February 2007, which is Budget Day. Mr Lee added that Second Finance Minister Tharman Shanmugaratnam would deliver the Budget speech.

Another change will be the amending of the Constitution to allow the government to tap the capital gains received from investing the national reserves.

- ARHHHHHHHHHHHHHH who can predict the next hike in GST, MRT, Bus fare, Electricity Tariff, Taxi Fares, Kopi-O, Movie Tickets, Oil Surcharge for Planes and your next meal in food court!!!?!?!?! Anyone can sing that song again?? Mee Siam Mai TAX! Mai TAX! Mai TAX! Mai TAX!!!!! Mee Siam Mai TAX!!

I heard the Army is giving more people the Golden Hand Shake even though they still got 5 years left in their contract! So no more “Iron Rice Bowl” for sign on personnel! What else can Singaporean take before they start to scream and shout? When they are dead in their own house…in a pile of bones…? HEY THAT DID HAPPENED! hahaa

Government! Wake up your ideas and make some kind of welfare scheme that is widely available to those who need it most and easily disseminate it….OR PROVIDE a source of income for those needy people!! Our future need you to think out of the box! How to get the rich to feed the poor and needy.

I got that idea…but I am NOT SHARING WITH YOU hahahaha…those who need money…email me and tell me how bad you need it….then I will consider telling you! Thanks

Simontay78@gmail.com TITLE: Helping Needy People Project 2006-2007

(UPDATE: someone just sent me a link to say NO poll to GST Hike…hmm hope this can gather momentum and get more people to oppose such GST hike!) 

According to Channelnewsasia -> Yahoo!News Singapore 

SINGAPORE : Singapore is setting up an Energy Studies Centre next year.

Deputy Prime Minister S Jayakumar says understanding how competition for energy sources is influencing policies and strategies of major energy suppliers and consumers will be useful.

As an energy importer, Professor Jayakumar says that Singapore is acutely aware of the challenges posed by energy supply and security.

And for the government, energy issues cut across different ministries and agencies.

Five key action areas have been identified, and Singapore will first diversify its energy sources.

“Today, about 80% of Singapore’s electricity is generated by gas imported from Indonesia and Malaysia. To ensure that we are not over-reliant on piped natural gas for our energy needs, we will pursue the import of Liquefied Natural Gas (LNG) to meet future demand for energy. The establishment of an LNG terminal will allow us to obtain gas supplies from more sources in the region and beyond,” says Deputy PM and Law Minister S Jayakumar.

Next is the long term development of new energy sources.

Singapore will keep a close eye on developments and encourage the testing of new technologies in these areas.

Other plans include improving the efficiency in how energy is used, translating that into tangible cost savings, expanding industry development and enhancing international cooperation on energy issues.

- Let’s hope there is no energy crisis BY NEXT YEAR!! haha..LNG going to be expensive…and we are heading into it happily…well…RENEWABLE TIME!

According to Peakoil-> Goldseek 

The situation appears to be so bad that the old Fed Head Alan Greenspan testified twice before the congressional committee on this issue. In June 2003 he made the following statement in front of them “Yesterday the price of gas for delivery in July closed at $6.31 per million British thermal units (Btu). That contract sold for as low as $2.55 in July 2000 and for $3.65 a year ago.” He was trying to illustrate that demand had increased so much and supplies were extremely tight; hence the market was ripe for an extreme move. It appears that so far they have paid very little attention to him. Perhaps when this contract trades in the 9.00-11 dollar ranges they might start to pay attention.

See more at Goldseek

- The world is going to see a much higher LNG prices in future….so what is OUR future?

According to Channelnewsasia :

SYDNEY : The world’s driest inhabited continent was in the grip of the worst drought in 1,000 years, a river management expert told Australia’s political leaders.

The government also agreed to speed up the implementation of proposals under the National Water Initiative, with permanent interstate water trading to begin between New South Wales and Victoria states on January 1 next year.

- Water technology will be the future of all techonlogy..if this persist…world will end up a very dangerous place to be