Daily Archives: March 12, 2012
Kyle Bass Explains Why He Had The University Of Texas Take Physical Delivery Of $1 Billion In Solid Gold
Linette Lopez | Mar. 12, 2012
We already know that Hayman Capital’s Kyle Bass is getting ready for the worst. Case in point, he keeps all kinds of weapons on his Texas compound and he’s buying up nickels because he believes the coins will eventually be worth more than 5 cents.
He’s also bullish on gold, and he reminded CNBC why in an interview today:
“The pattern is set, we’re going to continue to monetize fiscal deficits by expanding central bank balance sheets… I call it creating money out of thin air.”
He believes this so fully that while he was on the board of the University of Texas, he had them take physical delivery of $1 billion in gold. You can watch him explain why in the video below (via CNBC), but in a nutshell, he figured out that it would be much cheaper to store it.
And for the record, Bass doesn’t advocate going back to the gold standard, he thinks that’s impractical. Instead, he believes our economy should be tied to a basket of goods and services.
Read more: BI
- Kyle Bass: “Don’t Sell Your Gold” (zerohedge.com)
- What Happens If GLD Doesn’t Have The Physical Gold To Back Its Investment Funds??? (zerohedge.com)
- Kyle Bass On Rehypothecation And Other Keynesian Endgame Scenarios (zerohedge.com)
- KYLE BASS: Last Week’s EU Summit Agreement Was A ‘Doomsday Machine’ (businessinsider.com)
Anadarko Petroleum Corporation today announced the results of its first flow test offshore Mozambique. The Barquentine-2 well flowed at an equipment-constrained rate of 90 to 100 million cubic feet per day (MMcf/d), with minimal pressure drawdown, providing confidence in well designs that are capable of 100 to 200 MMcf/d.
“The test at Barquentine-2 exhibited exceptional flow characteristics, confirmed the deliverability of this reservoir and indicated a low density of development wells may be sufficient to produce the reservoir,” Anadarko Sr. Vice President, Worldwide Exploration, Bob Daniels said. “Using pre-set gauges in an offset well, we were able to confirm connectivity and reservoir continuity over a distance of more than 3 kilometers. The test also proves the reservoir has very high permeability, meeting the quality specifications for the partnership’s LNG development plans. This is a very encouraging way to start our testing program, which is an important component in the reserve certification process, as we focus on achieving FID (final investment decision) around the end of 2013.”
The Barquentine-2 well is located in water depths of approximately 5,400 feet (1,650 meters) in the Offshore Area 1 of the Rovuma Basin. The drillstem test was conducted by the Deepwater Millennium drillship, which is expected to be mobilized to the Barquentine-1 location for a second flow and interference test in the complex. The 2012 testing program also includes drillstem tests in the Lagosta and Camarao areas to the south of Barquentine.
Anadarko is the operator of the 2.6-million-acre Offshore Area 1 with a 36.5-percent working interest. Co-owners in the area are Mitsui E&P Mozambique Area 1, Limited (20 percent), BPRL Ventures Mozambique B.V. (10 percent), Videocon Mozambique Rovuma 1 Limited (10 percent) and Cove Energy Mozambique Rovuma Offshore, Ltd. (8.5 percent). Empresa Nacional de Hidrocarbonetos, E.P.’s 15-percent interest is carried through the exploration phase.
- Anadarko Strikes More Mozambique Gas (mb50.wordpress.com)
- Another Success Offshore Mozambique for Anadarko (mb50.wordpress.com)
- USA: Successfull Heidelberg Appraisal for Anadarko (mb50.wordpress.com)
- Anadarko Finds Hydrocarbons Offshore Sierra Leone (mb50.wordpress.com)
- USA: Aker Solutions to Provide Umbilicals for Anadarko’s Lucius Development (mb50.wordpress.com)
Norway’s Odfjell Offshore plans to raise up to $500 million in a private equity placing to develop further its fleet of six state-of-the-art ultra deepwater and harsh environment offshore drilling units. In addition, Odfjell Offshore may over-allot up to 10 percent of additional new shares, the firm announced Monday.
Parent company Odfjell Drilling will remain a majority shareholding in Odfjell Offshore after the private placing and will continue to provide its 40 years of operational experience, as well as its 3,000 highly skilled employees in the Odfjell Drilling organization, it said in a statement.
“Odfjell Offshore’s strategy is to expand our drilling operations in the ultra deep water and harsh environment market,” said Odfjerll Offshore Chairman Simen Lieungh. “Our fleet is uniquely positioned and we have a strong backlog. Currently, we have one newbuild ultra deep water semi under construction. In addition we have secured an option to build two similar units at Daewoo Shipbuilding & Marine Engineering in South Korea.”
Odfjell Offshore has retained DNB Markets, Pareto Securities, RS Platou Markets and Swedbank First Securities as joint lead managers and bookrunners, while Danske Markets and Nordea Markets as Co-Lead Managers to advise on and effect the private placement of new shares directed towards investors in Norway and other jurisdictions subject to applicable exemptions from registration and other requirements under applicable securities laws.
The offer price per share will be determined through a book-building process within an indicative price range of between $7 and $8 per share. The bookbuilding period commences Mar.12 2012 and will close Mar. 23 2012. Odfjell Offshore may, however, at any time resolve to shorten or extend the application period at its own discretion, it said.
Odfjell Offshore owns a fleet of highly capable and modern semisubmersible drilling units and UDW drillships currently under contracts in Norway, UK, Brazil, Angola and Tanzania:
- ‐ Deepsea Atlantic (DW semisub) and Deepsea Stavanger (DW semisub).
- – Two state-of-the-art ultra deepwater and harsh environment semi-submersible drilling units delivered in 2009 and 2010.
- ‐ Deepsea Aberdeen.
- – Ultra deepwater and harsh environment semi-submersible drilling rig currently under construction at Daweoo Shipyard in South Korea with expected delivery in May 2014.
- – Options for two similar units with scheduled delivery in December 2014 and March 2015.
- ‐ Deepsea Metro I (DW drillship) and Deepsea Metro II (DW drillship).
- – Two ultra deepwater drillships delivered in 2011
- ‐ Deepsea Bergen .
- – Enhanced 3rd generation North Sea semisubmersible drilling rig designed and built by Odfjell in 1983 (with subsequent substantial upgrades).
Odfjell Offshore has decided to apply for listing on Oslo Stock Exchange following completion of the private placing and targets listing in end May 2012.
- UK: Largest Contract in Odfjell Drilling’s History (mb50.wordpress.com)
- Deepsea Metro II Drillship Arrives in South Africa (mb50.wordpress.com)
- Ophir Begins with Drilling Operations Offshore Tanzania (mb50.wordpress.com)
- New Terminal JV in China for Odfjell SE (mb50.wordpress.com)
- USA: Mr. Charlie Initiated the Modern Offshore Oil & Gas Industry, ASME Says (mb50.wordpress.com)
Published: March. 12, 2012 at 6:47 AM
U.S. President Barack Obama in January denied a permit for TransCanada to build the billion-dollar Keystone XL oil pipeline. Republican leaders had tried to push the permit through by including the pipeline in a bill that extended payroll tax benefits. Obama rejected the permit because of an “arbitrary” deadline proposed in the legislation.
Exxon Mobil Chief Executive Officer Rex Tillerson told a major energy conference in Houston that industry leaders were practicing due diligence with the project but it was the U.S. political system that was getting in the way of development.
The decision to deny the initial permit for TransCanada, Tillerson said, was because of “political calculations” in Washington.
“In the end, it was also a disservice to public employees who are charged with overseeing this process and who met their obligations,” he was quoted by the Platts news service as saying. “We must continue to engage elected officials of the public to communicate the consequences of failing to move forward with such strategic opportunities.”
Backers of the pipeline describe it as a “shovel-ready” project that would shield the U.S. market from the effects that Middle East tensions have on the oil market. Critics say crude oil from Canada, designated for Keystone XL, is one of the dirtiest types of crude oil.
TransCanada can reapply after it settles on a route through Nebraska.
Read more: UPI
- Keystone XL Pipeline Bill Dies In Senate (inquisitr.com)
- Senate backs Obama on Keystone XL pipeline (mysanantonio.com)
- Keystone XL pipeline denied lifeline thrown by Republicans (ctv.ca)
- U.S. Senate blocks Republican move to force quick approval of Keystone pipeline (news.nationalpost.com)
- Keystone bill defeated by U.S. Senate Democrats (windsorstar.com)
- Senate kills attempt to approve Keystone pipeline (marketwatch.com)
AGA Gas AB, a member of the Linde Group, and Viking Line Abp have signed an agreement on delivery of liquefied natural gas (LNG) to Viking Line’s new cruise ship, the 57,000 grt, 214 m (702 ft) M/S Viking Grace.
“AGA’s and Viking Line’s investment means major environmental gains in comparison to traditional maritime fuel”, says Jan Bäckvall, Head of Europe North in Linde and responsible for AGA”. “For Baltic shipping, this can be the primary solution in the future”.
Viking Line’s new vessel with the project name “NB 1376″ will operate on the stretch Stockholm-Åbo from January 2013. Powered by four Wartsila 8L50 DF (dual-fuel) engines, the vessel is being manufactured at the STX boatyard in Åbo and has a capacity of 2,800 passengers, as well as large space for vehicles. LNG fuel will be stored in purpose-built tanks.
LNG contains no sulphur or heavy metals and reduces carbon emissions by 20-30% compared to oil. LNG meets IMO’s (International Maritime Organization) directives that sulfur content in marine fuel must not exceed 0.1 percent by weight from 2015 onwards. In addition, it complies with future requirements to reduce nitrogen oxide emissions.
The vessel’s consumption of LNG is estimated at 22,500 tonnes annually, or about 60 tonnes per day. AGA will supply the liquefied natural gas from AGA’s LNG terminal in Nynäshamn, which opened in 2011. Planning, projecting and permission for bunkering (refueling) of the vessel at Stadsgården in Stockholm is in progress.
“The cooperation between AGA and Viking Line means that the guidelines for the management of a new fuel will be developed. This paves the way for a new infrastructure for Swedish shipping where LNG is of great future importance,” says Michael Backman, CEO of Viking Line Abp.
“Viking Line’s environmentally conscious investment is an important “flagship” for shipping and a cleaner Baltic Sea area. The proximity to the LNG terminal, which provides flexible and reliable deliveries and AGA’s knowledge of cryogenic environmentally friendly fuel and bunkering technology, make AGA a natural partner in this pioneering project,” says Jan Bäckvall, AGA.
Looking to the future, AGA believes the biggest market for its LNG fuel supplied from Nynäshamn will most likely be marine transport. Trond Jerve, LNG Manager at AGA, explains: in Norway car ferries are required to run on natural gas. By 2013, more than 40 ships will be powered by LNG, and the majority of these will be equipped with cryogenic equipment from Cryo AB. At international level, industry experts also agree that natural gas is the fuel of the future for marine fleets across the globe as environmental shipping regulations set down by the International Maritime Organization (IMO) become increasingly stringent. Thresholds for sulphur levels in fuel have been subject to particularly strict regulation, with limits for shipping in the North Sea and Baltic Sea set to drop from the current 1.5 percent to 0.1 percent by 2015. Ships docking in European ports today must already comply with a 0.1 percent limit. “Natural gas is an attractive option in the move towards these goals,” confirms Jerve.
- Sweden’s AGA Gas to Provide Cryogenic Fuel for Viking Line’s Ultra-Low Emissions Flagship (gcaptain.com)
- U.S. LNG Imports Nosedive in Jan (mb50.wordpress.com)
- 100 Million Tons of Ships, Hyundai Heavy Surpasses All Others (mb50.wordpress.com)
- USA: Broadwater Shelves LNG Plan (mb50.wordpress.com)
- USA: Environmental Groups Join Forces Against LNG Fracking (mb50.wordpress.com)
- USA: Sabine Pass LNG Gets Cargo (mb50.wordpress.com)
- USA: Encana Inaugurates LNG Fueling Station in Louisiana (mb50.wordpress.com)
- Finland: Wartsila to Provide Propulsion for Harvey’s New LNG OSVs (mb50.wordpress.com)
- USA: Golden Pass LNG Plans Re-Exports (mb50.wordpress.com)
ASME wil name Mr. Charlie a Historic Mechanical Engineering Landmark at a ceremony to be held March 17, 2012, in Morgan City, La., where the rig is moored
Built in 1952-53 and placed into service in the Gulf of Mexico in 1954, Mr. Charlie was the world’s first submersible and fully transportable drilling rig. Its drills and other machinery were installed on a 220-foot floating barge, which allowed a company to tow Mr. Charlie from one location to another in the search for reserves in the oil-rich waters of the Gulf. Once Mr. Charlie was situated over a drill site in depths averaging 40 feet, the giant pontoons were flooded with seawater to enable the vessel to rest on the sand for safe drilling.
Featuring a 500-ton hoist and durable welded construction, Mr. Charlie advanced the practice of coastal oil exploration from the stationary caisson structures used in the early 1950s to a revolutionary moveable rig that allowed an entire field to be drilled.
“Mr. Charlie’s success initiated the modern offshore oil and gas industry,” says ASME in a bronze plaque to be presented to the International Petroleum Museum and Exposition at the March 17 ceremony.
During its lifetime of service from 1954 to 1986, Mr. Charlie drilled hundreds of wells in the Gulf Coast for Shell and other oil companies. The rig, while transformative in its time, became obsolete when the industry began to perform offshore Gulf Coast oil exploration in waters deeper than 40 feet. Mr. Charlie today is a museum exhibit and training facility.
- Atwood Beacon to Drill Offshore Israel (mb50.wordpress.com)
- Statoil Introduces New “Cat J” Jackup Rig for Norwegian Continental Shelf + [VIDEO] (mb50.wordpress.com)
- Singapore: EMAS Achieves Record Order Book with New Contracts (mb50.wordpress.com)
- Hercules sees more rigs in GOM (mb50.wordpress.com)