More Base Metal Consolidation:
It looks like Alcan and Alcoa could be finding a little more competition if the recently announced merger between the two Russian aluminum producers goes through.
The proposal is for OAO Rusal and Sual Group to merge which will create a company that has the potential to rival either Alcan or Alcoa and change the supply dynamics in the Aluminum industry globally. The $30 billion merger has not been completed but is another in a series of mergers that have been spurred on by high commodity prices and the need to grow to stay competitive in the global market place.
The announcement today from Chevron Corp regarding their drilling project in the Gulf of Mexico has the potential to change the long term oil supply picture for the US.
Chevron is a 50% partner along with Statoil ASA of Norway (25%) and Devon Energy (25%) in a 300 square mile property in the Gulf. The initial inducations are that this find could be the largest since the Prudhoe Bay Alaska find. This field holds a potential of 3 billion to 15 billion barrels of oil which could become a major source of supply lasting up to 20 years.
The oil is very deep approximately 20,000 feet under the sea bed and is located 7000 feet below sea level. The initial hole is a total of 28,175 deep or over 5.3 miles below sea level.
Any production from this find will be years into the future likely production will not start before 2010 and that would be if everything goes according to plan. This find will increase the pressure on all of the Gulf coast states to rethink their opposition to exploration along their coasts. It will be interesting to see which other companies announce similar finds in the area over the next few years this is likely to be a focus region for American oil companies due to relative closeness to the US market. The fact that it is US controlled reduces the long term risk to production disruptions due to political uncertainty as well.
Chevron and Devon appear to be well ahead of the pack in this region and this could be a way for them to stay out if front for a long time.
For more information go to www.campbellreport.com
The proposal is for OAO Rusal and Sual Group to merge which will create a company that has the potential to rival either Alcan or Alcoa and change the supply dynamics in the Aluminum industry globally. The $30 billion merger has not been completed but is another in a series of mergers that have been spurred on by high commodity prices and the need to grow to stay competitive in the global market place.
The announcement today from Chevron Corp regarding their drilling project in the Gulf of Mexico has the potential to change the long term oil supply picture for the US.
Chevron is a 50% partner along with Statoil ASA of Norway (25%) and Devon Energy (25%) in a 300 square mile property in the Gulf. The initial inducations are that this find could be the largest since the Prudhoe Bay Alaska find. This field holds a potential of 3 billion to 15 billion barrels of oil which could become a major source of supply lasting up to 20 years.
The oil is very deep approximately 20,000 feet under the sea bed and is located 7000 feet below sea level. The initial hole is a total of 28,175 deep or over 5.3 miles below sea level.
Any production from this find will be years into the future likely production will not start before 2010 and that would be if everything goes according to plan. This find will increase the pressure on all of the Gulf coast states to rethink their opposition to exploration along their coasts. It will be interesting to see which other companies announce similar finds in the area over the next few years this is likely to be a focus region for American oil companies due to relative closeness to the US market. The fact that it is US controlled reduces the long term risk to production disruptions due to political uncertainty as well.
Chevron and Devon appear to be well ahead of the pack in this region and this could be a way for them to stay out if front for a long time.
For more information go to www.campbellreport.com
posted by Grant | 4:44 PM
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