Tag Archives: finite

There Is A Finite Limit

Privately held oil and gas exploration companies such as Texco Petroleum Exploration Inc. are always looking for new investors, and offer high potential income streams up to two or three decades from one successfully drilled commercial producing oil well. Resources on Hydraulic Fracturing–the KGS presents these links to help people learn about hydraulic fracturing of oil and gas wells. After varying incubation periods, the residual oil was extracted and separated on silica gel columns into saturate and aromatic fractions and these were analyzed by glass capillary gas chromatography to detect the degradation of various compounds. This requirement is required by all major oil companies, oil and gas operators, and supporting companies in Indonesia. They stressed mainly on onshore oil and natural gas projects. Project Gasbuggy was the first in a series of Atomic Energy Commission downhole nuclear detonations to release natural gas trapped in shale. First 5 people to register gets a 10% discount.

Some people might argue that the reasons for the economic difficulties are OPEC countries flooding the crude oil market, property cooling measures and slowing global economies, especially that of China. Investors who have lost money in stocks in the above-mentioned industries, despite a long-running US equities bull market, would understand best. He has to start with a best possible estimate of the initial in-situ state of stress. Of course, overall, DEP and DCNR still have the same amount of work to do, the same laws to enforce and the same State Forests and State Parks to protect and manage. If the same situation affects residential properties, many people will have to likewise tighten their belts and pay down debts. For these OSV companies, they will have to significantly tighten their belts and slowly pay down their debts for many years in order to stay afloat. The situation is reminiscent of Offshore Support Vessel (OSV) companies which took on huge debts to expand their fleets of OSVs rapidly when oil price was high but are now having difficulties finding charterers to hire their OSVs.

Because cur­rent oil prices are at levels previously observed in history, some suggest that oil prices are mean reverting to a long term equilibrium price. The oil and gas segment needs ample of engineers and scientist to work with. That sector contains the exploration & production part of the Oil & Gas (O&G) industry, which is currently in a deep slump. TSC contains the shipping industry, which is in a prolonged slump. OCBC’s NPL ratio for the AMQ sector is a high 4.6%. In the Manufacturing sector, the NPL ratios for DBS, OCBC and UOB are 1.8%, 3.2% and 6.2% respectively. I believe the O&G industry resides in the Manufacturing sector wholly for DBS & UOB and partially for OCBC. Fig. 3 below shows the NPL ratio by industry for each bank. As reported, both DBS and OCBC have NPL ratios of 0.9%, while UOB’s NPL ratio is 1.4%. The figure below shows the NPL ratio by geography for each bank. In Greater China, both DBS and OCBC have larger presence after their respective takeover of Dao Heng Bank and Wing Hang Bank in Hong Kong.

If you think Singapore will slow down further, all 3 banks will be hit, although OCBC has the least exposure among them. Moving forward, if China and/or Singapore were to slow down further, their NPL ratios would rise. However, the reported NPL ratios are historical figures. Putting the 2 figures together, South & Southeast Asia is the region to avoid currently, which DBS has the least exposure. In South & Southeast Asia, which has the highest NPL ratio among all regions, DBS has the least exposure, as it does not have major retail presence in Malaysia and Indonesia/ Thailand. If you think South & Southeast Asia will tank further, DBS is the safest bet. If you believe China will slow down further, UOB is the safest bet. Research On China (ROC) is Netscribes’ leading source for market intelligence on emerging sectors in China. As oil is crucial for every economy as a source of fuel and energy, any movement in oil market affects supply and demand of most of the goods in an economy.