Estate workforce issue revisited

By Star Online: Business
19th Feb 2013

OVER the past five years, oil palm planters' cost of production (COP) has been on a steady rise.

Of the total COP, labour costs can take up as much as 30%, depending on the degree of mechanisation in place to harvest the palm fresh fruit bunches (FFB) at the estates.

The COP normally covers the upkeep or cultivation expenses, fertiliser application, harvesting, transportation, other estate charges and labour costs.

M’sia should take advantage of major shift in global cocoa demand

From Star Online: Business
11th Dec 2012

LATELY many reports have cropped up on the major shift in the global demand for cocoa to Asia. This is in contrast to its traditional market in Europe that can also lead to the end of its decades of dominance in cocoa grinding and processing operations.

The declining demand in Europe also triggered an interesting development whereby there has been increasing new investments by Western companies in cocoa-growing regions in Africa and also new areas in Asia, namely Laos, Vietnam and Indonesia. Apparently there is fear that the strong demand in Asia could result in a tight supply situation for cocoa going forward.

Analysis: Rare earth prices to erode; what are rare earths

By Star Online: Business
20 September 2012

LONDON: Prices of rare earth elements, which tumbled after a speculative bubble burst last year, are likely to erode further as new supplies hit the market and exports edge higher from dominant producer China due to weak demand at home.

Prices of the 17 elements used in technologies such as smartphones and hybrid cars soared last year by hundreds of percent after China clamped down on exports. Hot money flowed into an illiquid sector but later departed, causing a crash.

Lanthanum, used in rechargeable batteries for hybrid autos and in night-vision goggles, rocketed 26-fold from $5.15 a kg in January 2010 to a peak of $140 in June 2011. Although it has slid to $20.50, the price is still well above earlier lows.

The market has steadied in recent months, but new output from U.S. Molycorp and Australia's Lynas Corp is likely to pressure prices, especially those of "light" rare earths which are not as scarce as their "heavy" cousins.

Difficult oil or new efficient energy pursuit poser

By Star Online: Business
10 September 2012

PETROLIAM Nasional Bhd (Petronas), which recorded a weaker financial performance in its second quarter for the financial year 2012, is aiming to substantially beef up its capital expenditure (capex) moving forward.

Its CEO Tan Sri Shamsul Azhar Abbas and executive vice-president of finance Datuk George Ratilal had repeatedly highlighted in Friday's press conference that this will be the immediate focus for Petronas at least in the coming five years.

The future is in our palm

By Star Online: Business
25 Aug 2012

THE STAR recently held its first roundtable talk on palm oil with four prominent captains of the industry Malaysian Palm Oil Council (MPOC) chief executive officer Tan Sri Dr Yusof Basiron, IOI Group executive director Datuk Lee Yeow Chor, Felda Global Ventures Holdings Bhd group president/CEO Datuk Sabri Ahmad and United Plantations Bhd vice-chairman Datuk Carl Bek-Nielsen.

The Star's executive editor Errol Oh was the moderator at the talk which covered the economic importance of the industry; its sustainability, production, demand and supply patterns; and the acute labour shortage it faces.

Key players: The Star’s Errol Oh (middle) with leaders of the Malaysian palm oil industry (from left) United Plantations Bhd’s Datuk Carl Bek-Nielsen, Malaysian Palm Oil Council’s Tan Sri Dr Yusof Basiron, IOI Group’s Datuk Lee Yeow Chor and Felda Global Ventures Holdings Bhd’s Datuk Sabri Ahmad.

The following are excerpts from the roundtable talk held at Menara Star in Petaling Jaya:

Low natural rubber prices boost production of gloves

By Star Online: Business
31 July 2012

THE recent inaugural roundtable on the rubber glove industry has provided a deeper insight into the game plan of the nation's top rubber glove players to stay competitive and still reign as the world's largest producers of the product.

Malaysian manufacturers account for about 60% of global demand. The major players include Top Glove Corp Bhd, Supermax Corp Bhd,Kossan Rubber Industries Bhd and Hartalega Holdings Bhd.

Even though industry players' production costs are set to escalate further following the minimum wage policy and the expected removal of subsidies on natural gas by the Government, many are undeterred and will continue with their expansion programme locally and abroad.

Water is the new gold, a big commodity bet

By MarketWatch
24 July 2012

SAN LUIS OBISPO, Calif. (MarketWatch) — “Is water the gold of the 21st century?” asks Fortune. Answer: Yes, water is the New Gold for investors this century.

In 2010 global water generated over a half trillion dollars of revenue. Global world population will explode from 7 billion today to 10 billion by 2050, predicts the United Nations. And over one billion “lack access to clean drinking water.”

Reuters

A girl carries a container of water on her head at a creek in Myanmar's new capital Naypyitaw.

Climate and weather patterns are changing natural water patterns. And industrial pollution is making water a scarce commodity. So the good news is that huge “opportunities exist for businesses that can figure out how to keep the pipes flowing.”

Yes, it’s a hot market. So, expand your vision for a minute. How many bottles of water do you drink a week? How much did you use for a shower? When you flushed a toilet? Wash your car? Cooking? Lattes? And my guess is your city water bill’s gone up in recent years.

So ask yourself: What happens in the next 40 years when another three billion people come into the world? Imagine adding 75 million people every year, six million a month, 200,000 every day, all demanding more and more water to drink, to shower, to cook, to everything. All guzzling down the New Gold that’s getting ever scarcer.

Oil supply surge could risk price collapse: Harvard analysis

By Star Online: Business
27 June 2012

WASHINGTON: Global oil supplies are growing so fast that they could outstrip demand and lead to a collapse in world prices, a former energy executive who is now a Harvard research fellow said on Tuesday.

"Most analyses today are still marked by this obsession with oil running out," Leonardo Maugeri, formerly a senior manager at Italy-based oil and gas giant Eni SpA , said at a discussion at the Center for Strategic and International Studies think tank in Washington.

In analyzing capacity at more than 1,000 oil fields around the world, he found that depletion of oil supplies was occurring "much more slowly and gently than expected."

He estimated that world oil production capacity could go up by 17.6 million barrels per day between now and 2020.

"Contrary to what most people believe, oil supply capacity is growing worldwide at such an unprecedented level that it might outpace consumption," he wrote in his analysis, published as a policy brief by Harvard's Belfer Center for Science and International Affairs. "This could lead to a glut of overproduction and a steep dip in prices."

Production capacity is expected to grow the most in Iraq, the United States, Canada, Brazil and Venezuela, while it could decline in Norway, the United Kingdom, Mexico and Iran, his analysis found.

Much of the surge in U.S. capacity is due to the boom in shale oil.

Unless oil demand grows at a sustained yearly rate of 1.6 percent -- compared with a bit less than 1 percent now -- overproduction and price collapse are possible, Maugeri said.

Global oil output capacity is likely to grow from 93 million barrels per day currently to 110 million bpd by 2020. If oil prices stay above $70 a barrel, the increase in capacity can be sustained, according to the analysis.

"However, world demand is sluggish due to the lagging economy and focus on energy efficiency," Maugeri wrote. "If these trends continue, we could see a significant dip -- or even a temporary collapse -- of oil prices."

The boom in so-called unconventional oil, like that derived from hydraulic fracturing of oil and gas locked in underground shale formations, must trigger environmental action, he wrote.

"Without this balance between industry and environmental interests," the analysis said, "new oil production projects will be stymied or delayed." - Reuters

[Source]

Donald Trump on oil prices.

From The Desk Of Donald Trump: Obama's Deal

"Even though gasoline and oil prices are going right through the roof, I have no doubt in my mind that President Obama may need to deal with the sorties to flood the market with oil before the election so that he can at least keep it down a little bit, after the election, it's going to be a mess, you're gonna see number you've never seen. If he wins. Let's hope he doesn't win. So remember what I've said, if he wins, oil and gasoline, through the roof, like never before. I believe a deal was made. It's a soon to see deal, so let's see whether or not I was right, it's not going to be a pretty picture."

Donald Trump opines President Obama will flood the market with oil supply at least until the election in Nov 2012 to push down oil price.
After the election, DT thinks that oil prices is going to skyrocket if President Obama wins.

Remarks:

Sell all oil-input dependent stocks especially the aviation,logistic and transportation sector, eg. AIRASIA,AIRPORT,MAS

Buy O&G sector that extract and sell oil, eg. HIBISCUS, Petronas, DIALOG