Energy Market Shifts: April 1999 Insights

Strategic Insights -

On April 22, 1999, energy market news highlighted significant developments, including Caltex Philippines' decision to adjust fuel prices due to higher crude costs and Japan's electric and gas utilities announcing rate cuts starting from July. International players, such as Callidus Technologies, were negotiating equipment supply deals, while the Stuart Oil Shale Project progressed towards its fourth-quarter 1999 production target. Hyundai Oil Refinery Co. also secured a $200 million Saudi Arabian Islamic fund.

Key Takeaways:

  • Caltex Philippines implemented a 50-centavo across-the-board price increase for all fuel products except LPG on April 21, 1999, to cover the increased cost of crude oil, which rose from $10 per barrel in February to over $15 in April.
  • Japan's 10 electric power companies, including Tokyo Electric Power Co., and four major city gas firms, including Tokyo Gas Co., announced rate reductions starting from July 1999, reflecting lower raw material prices and a stronger yen.
  • Callidus Technologies Ltd is negotiating with Larsen and Toubro and Engineers India Ltd to supply equipment for refinery projects in India and abroad.
  • The Stuart Oil Shale Project's A$250 million ($US160.88 million) stage one demonstration plant in central Queensland was on track to achieve reliable production in the fourth quarter of 1999.
  • Hyundai Oil Refinery Co. secured a US$200 million Saudi Arabian Islamic fund, led by National Commercial Bank of Saudi Arabia, to pay for oil purchases from Arabian-American Oil Co. (ARAMCO).

Statistics:

  • Crude oil price: $10 per barrel in February 1999, over $15 per barrel in April 1999.
  • Caltex Philippines' price increase: 50 centavo across-the-board for all fuel products except LPG.
  • Japan's rate reduction: Total of 10 electric power companies and 4 city gas firms announcing rate cuts starting from July 1999.
  • Stuart Oil Shale Project: A$250 million ($US160.88 million) stage one demonstration plant in central Queensland, aiming for reliable production in the fourth quarter of 1999.
  • Hyundai Oil Refinery Co. fund: US$200 million Saudi Arabian Islamic fund secured for oil purchases from ARAMCO.

Sources:

  • Asia Pulse (http://www.asiapulse.com)
  • Tokyo Electric Power Co. (TSE:9501)
  • Tokyo Gas Co. (TSE:9531)
  • Callidus Technologies Ltd
  • Larsen and Toubro
  • Engineers India Ltd
  • Press Trust of India (PTI)
  • Southern Pacific Petroleum NL (SPP)
  • Central Pacific Minerals NL (CPM)
  • Suncor Energy Inc.
  • Hyundai Oil Refinery Co.
  • National Commercial Bank (NCB) of Saudi Arabia
  • Arabian-American Oil Co. (ARAMCO)