Sunday 4th December 2016

Resource Clips


Posts tagged ‘gas’

Infographic: Countries of origin for raw materials

November 16th, 2016

Graphic by BullionVault | text by Jeff Desjardins | posted with permission of Visual Capitalist | November 16, 2016

Every “thing” comes from somewhere.

Whether we are talking about an iPhone or a battery, even the most complex technological device is made up of raw materials that originate in a mine, farm, well or forest somewhere in the world.

This infographic from BullionVault shows the top three producing countries of various commodities such as oil, gold, coffee and iron.

Infographic Countries of origin for raw materials

 

The many and the few

The origins of the world’s most important raw materials are interesting to examine because the production of certain commodities is much more concentrated than others.

Oil, for example, is extracted by many countries throughout the world because it forms in fairly universal circumstances. Oil is also a giant market and a strategic resource, so some countries are even willing to produce it at a loss. The largest three crude oil-producing countries are the United States, Saudi Arabia and Russia—but that only makes up 38% of the total market.

Contrast this with the market for some base metals such as iron or lead and the difference is clear. China consumes mind-boggling amounts of raw materials to feed its factories, so it tries to get them domestically. That’s why China alone produces 45% of the world’s iron and 52% of all lead. Nearby Australia also finds a way to take advantage of this: It is the second-largest producer for each of those commodities and ships much of its output to Chinese trading partners. A total of two-thirds of the world’s iron and lead comes from these two countries, making production extremely concentrated.

But even that pales in comparison with the market for platinum, which is so heavily concentrated that only a few countries are significant producers. South Africa extracts 71% of all platinum, while Russia and Zimbabwe combine for another 19% of global production. That means only one in every 10 ounces of platinum comes from a country other than those three sources.

Graphic by BullionVault | posted with permission of Visual Capitalist.

Ever deeper, ever higher

October 11th, 2016

China takes on three mining frontiers, but not without competition

by Greg Klein

This is the first of a two-part feature. See Part 2.

Nearly a century before laggard Europeans got around to their Age of Exploration, Chinese merchant vessels had been travelling at least as far as eastern Africa, returning with vast shiploads of treasure. The voyages ended abruptly in 1433, for reasons debated by historians, and rulers ordered a massive merchant fleet destroyed. That largely left the New World to Westerners, evidently not a policy China intends to repeat. Now the country plans the conquest of three new frontiers: “deep underground, deep sky and deep sea.”

Such are the goals of Three Deep, a five-year plan announced last month by the country’s Ministry of Land and Resources. China’s funding R&D that would take mineral exploration deeper than ever on land and at sea, while exploring from outer space as well. But formidable as they are, the three frontiers aren’t completely uncharted. The expansionist, resource-hungry regime will have competition.

China takes on three mining frontiers, but not without competition

By 2020 the country wants the ability to mine land-based deposits that begin two kilometres in depth, find minerals at three kilometres, and identify oil and gas at 6.5 to 10 kilometres, the South China Morning Post reported October 5. China intends to develop underground communities too, although those details were even more scarce.

China also plans technology for undersea mineral exploration and mining, working towards the ability to send a remotely operated vehicle (ROV) to 11 kilometres’ depth by 2020, the paper added. That’s slightly beyond the deepest known point of any seabed. The country has already sent an ROV seven kilometres deep in the Pacific. In the Indian Ocean, Chinese have been studying seabed mining technology on a 10,000-square-kilometre area south of Madagascar, the SCMP stated.

Going from the depths to the heavens, China wants 27 satellites in orbit by 2020 to conduct surveys and research, partly on terrestrial mineral potential. The country also has expressed ambitions for moon and Mars landings, and for sending its citizens into space. A Chinese competitor to SpaceX, One Space Technology, plans its first commercial rocket launch in 2018.

SpaceX, of course, retains its Elon Musk confidence even after the Falcon 9 rocket blew up prior to take-off last month, destroying a $300-million communications satellite. Having received NASA contracts to ferry people and cargo to the International Space Station, Musk continues to talk about sending colonists to Mars. He’s already sent some lithium stocks to the moon.

Probably among the more credible companies talking about mining the heavens are Planetary Resources and Deep Space Industries. Both develop technology for NAFTA and both have signed MOUs with Luxembourg that would help finance mineral exploration and mining of near-Earth asteroids. The Grand Duchy, a global leader in satellite communications, has announced its willingness to invest in extra-terrestrial mining to become a world leader in other worlds. The country also plans to create a legal framework for its outer space endeavours, after the U.S. passed legislation giving Americans the right to keep any extra-terrestrial commodities they extract.

Deep Space says it will launch its Prospector X experimental asteroid explorer “in the near future.” By the first half of the next decade, Planetary expects to begin small-scale extraction of asteroid water for its oxygen and hydrogen.

Already a nine-year veteran of the main asteroid belt, NASA’s Dawn craft now orbits the dwarf planet Ceres after having studied the proto-planet Vesta. Last month the space agency’s NASA OSIRIS-REx set off for the asteroid Bennu, with arrival expected in 2018 and return in 2023.

JAXA, the Japan Aerospace Exploration Agency, has been to that neighbourhood and back after its Hayabusa craft delivered asteroid samples in 2010.

Last month the European Space Agency ended the 12-year, eight-billion-kilometre odyssey of its Rosetta craft, which spent the last two years studying a comet. In a joint project with Russia’s Roscosmos, the ESA expects to land a capsule on Mars on October 19 to search for signs of previous life.

Russia’s moon exploration program sees potential for minerals delivered by asteroid impact. “In the next few years, all scheduled moon flights will focus on its southern polar region, where low-temperature reservoirs of rare earths, as well as unknown volatile substances, have been detected,” Industrial Minerals quoted Vladislav Shevchenko of Moscow State University. Given higher commodity prices, mining could be viable, he added.

Boeing NYSE:BA recently matched Musk’s big talk as CEO Dennis Muilenburg spoke about sending holidayers to orbiting tourist traps prior to linking up with the Red Planet. “I’m convinced the first person to step foot on Mars will arrive there riding a Boeing rocket,” Bloomberg quoted him last week. As a NASA contractor Boeing competes with SpaceX on its own and through the United Launch Alliance, a JV with Lockheed Martin NYSE:LMT.

This is the first of a two-part feature. See Part 2.

The non-profit group Resource Works points out green energy’s reliance on oil, gas and mining

July 18th, 2016

…Read more

Visual Capitalist: Gold and zinc crush it in Q1, energy gets smoked

April 8th, 2016

by Jeff Desjardins | Visual Capitalist | April 8, 2016

Gold and zinc crush it in Q1, energy gets smoked

 

The start of 2016 has been a roller coaster for investors.

Global markets had their worst ever start in the first trading days of the year, with the S&P 500 eventually shedding 10.5% by early February. Stocks have rebounded since then, but tension is still in the air with record longs on the VIX Volatility Index.

Precious metals

For this reason, among many others, investors piled into precious metals in Q1 of 2016. Gold finished up an impressive 15.9%, buoyed by record buying in gold ETFs. Meanwhile silver and platinum, which are considered precious metals with more industrial uses, were also up in Q1 to a lesser extent: 9.4% and 6.6% respectively.

Base metals

Base metals were all over the map in the first few months of the year. Zinc shot up a surprising 20%, though it has been overdue for a bounce-back since hitting five-year lows in 2015. Nickel and copper, however, did not perform as admirably. Nickel was in negative territory (-3.1%) and copper ultimately ended up flat, despite a large rally in February and early March.

Energy

The energy sector had no real winners, with WTI crude, natural gas and uranium all ending up in the red. Natural gas was the worst of these with a steep -17% drop as it continues to eye multi-decade lows. Some analysts expect more downward pressure on natural gas now that the quantity of gas in storage is 34.2% higher than the five-year average.

Food

The world’s key agricultural commodities were a mixed bag in terms of performance. Soybeans jumped 4.2% in value, but wheat (1%) and corn (-0.3%) only had subtle changes in prices.

With many looming questions for Q2, we’re sure that our next quarterly update will be just as eventful. Concerns around a potential Brexit, negative interest rates, stagnating manufacturing and a potential U.S. rate hike could make for a particularly interesting time period.

Chart presented by First Mining Finance Corp. Posted with permission of Visual Capitalist.

From carbon tax to blood tax

March 23rd, 2016

Canada should reject American hypocrisy and Saudi blood oil, says Stewart Muir

by Stewart Muir, posted with permission of Resource Works

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Don’t miss a new PBS exposé out March 29 featuring human rights abuses in Saudi Arabia, which sold $100 billion worth of crude oil to Canada between 2012 and 2015. Those who have seen the documentary say the footage is shocking to behold.

It’s a mystery why Canada is content to import billions in blood oil from Saudi Arabia while at the same time pursuing policies at home aimed at eliminating Canadian oil from the market.

Canada should reject American hypocrisy and Saudi blood oil, says Stewart Muir

Which world leaders would be happy to
see Canada stop producing its own energy?
(U.S. White House photo by Pete Souza)

Just before Christmas, the Saudis beheaded Filipino Joselito Lidasan Zapanta because he could not pay a ridiculous $1-million fine.

Policies aimed at curtailing western Canadian energy development will only make us more dependent on bloodthirsty Saudi oil, while eliminating tens of thousands of our best-paying jobs.

If we are content to let eastern Canada source its oil from a country that executes citizens who question the government, and at the same time sell armaments to Saudi Arabia, what does that say about our own democratic system?

Yet if Ottawa has any particular concern over the soaring suicide rate among Canadian oilpatch workers, that would be news to me.

For those who don’t believe you have to give up the economy to save the environment, the resulting question is simple: What is the way to stand up for Canadian families and stop rewarding Saudi princes for their despicable practices?

One practical step we can take today is simply to ensure that every Canadian policy on fossil fuels applies equally to all of our energy imports.

Until 100% of our imported products are in compliance, no Canadian products should face domestic prejudice.

I understand we need international trade, but Ottawa’s eagerness to source oil from a savage regime while taking measures to curb the oilsands remains a sore point with me.

One possibility is imposing a blood tax, much like a carbon tax, that rewards social responsibility. Our Charter of Rights and Freedoms, our parliament and our courts provide a yardstick that we could use to measure others against.

Obama’s Arctic vision and what we could learn

On a similar topic, last week saw a major existing supplier of Canadian oil take strides to massively increase its own oil production. I’m talking about the United States and its decision to pursue a long-term exploration plan for the high Arctic.

Come again? Isn’t U.S. President Barack Obama a climate crusader working hard to end the burning of hydrocarbons and stop Canada from building pipelines?

No, actually, he’s not. In case you thought moral suasion from Canada on addressing climate change was having any effect whatsoever on the U.S., think again. The fact is, the U.S. is obsessed with its own energy security and there is no way it will jeopardize a long-term supply of the fossil fuels that provide about 80% of its needs.

Canada should reject American hypocrisy and Saudi blood oil, says Stewart Muir

(Image: Resource Works)

Last week’s news from the U.S. Bureau of Ocean Energy Management will result in new oil and gas leases off the coast of Alaska. The map of the area that could be opened to drilling includes offshore territory Canada claims as its own.

Why is the U.S. doing this now? Simple: because Americans have a long-term plan for energy.

“If development starts now, the long lead times necessary to bring on new crude oil production from Alaska would coincide with a long-term expected decline of U.S. Lower 48 production,” reported the National Energy Council, which advises the U.S. government. “Alaskan opportunities can play an important role in extending U.S. energy security in the decades of the 2030s and 2040s.” (See page 13 of the report.)

So while the U.S. is taking pragmatic steps for long-term viability as an energy-intense nation state, in Canada we seem to be at risk of basing energy planning on “100% carbon-free” slogans that appeal strongly to some voters. The March 22 federal budget was heavy on climate and clean-energy promises that require (and deserve) focus. Yet as the budget also recognizes, our national future depends on the ability to evolve and improve the solutions we already have in place.

A National Energy Council for Canada

Much work is now required for Canada to figure out what it means to look for new ways to “expand and green” the economy and create opportunities for citizens. For now, the lack of a coherent Canadian energy strategy also means, as CBC pointed out last week, that questions are being raised as to whether U.S. energy development in the north threatens our very sovereignty.

Americans are no fools. They know that the longer time frame required for arctic projects is the result of remoteness, long supply chains, short exploration seasons due to ice, regulatory complexity and potential for litigation. The Americans know that it can take more than 30 years to line up all the necessary success conditions and that’s why they are getting cracking now.

In Canada, we also have the potential to ensure that beneficial energy sources, ones that will be subject to unwavering environmental controls, are developed.

What we totally lack is a coherent national political vision—one that acknowledges the need to green our energy supply and lower our impact on the planet, one that also recognizes the economic realities of the present day.

An attempt at a national energy strategy, developed by the premiers at the Council of the Federation, represents a weak vision compared to the clear path that American energy planners are following. Placing national sovereignty far down the list of priorities is not a mistake that other countries are making today. Also unlike most countries, Canada occupies an enormously privileged position when it comes to the natural assets it possesses.

Last week, the National Energy Board reported that a heretofore wallflower of Canadian natural gas plays, the Liard Basin, is suddenly the belle of the ball. This source of gas (the cleanest fossil fuel) now turns out to be one of the biggest in the world. It straddles the Yukon, B.C. and the NWT. The upgraded estimates say the Liard has enough natural gas to meet Canada’s needs at 2014 levels of consumption for nearly 70 years. Meantime, the NWT is sitting on 200 billion barrels of oil identified in two NWT shale formations alone.

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November 24th, 2015

What to ask when doing due diligence Equities Canada
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UK housebuilding to boost clay demand
Industrial Minerals
Michael Curran goes down-market shopping for winners Streetwise Reports
TransCanada: Pipelines? Pfft. We don’t need no stinking pipelines Stockhouse
China probably raised gold hoard again in October, adding 14 tons NAI 500
Dr. Clay: That mud bath might actually be good for you Geology for Investors

November 23rd, 2015

Gold stocks look disproportionately cheap relative to gold GoldSeek
UK housebuilding to boost clay demand Industrial Minerals
Michael Curran goes down-market shopping for winners Streetwise Reports
TransCanada: Pipelines? Pfft. We don’t need no stinking pipelines Stockhouse
Why Donald Trump’s presidential campaign actually warrants attention Equities Canada
China probably raised gold hoard again in October, adding 14 tons NAI 500
Dr. Clay: That mud bath might actually be good for you Geology for Investors

November 20th, 2015

UK housebuilding to boost clay demand Industrial Minerals
Michael Curran goes down-market shopping for winners Streetwise Reports
Five world currencies that are closely tied to commodities GoldSeek
TransCanada: Pipelines? Pfft. We don’t need no stinking pipelines Stockhouse
Why Donald Trump’s presidential campaign actually warrants attention Equities Canada
China probably raised gold hoard again in October, adding 14 tons NAI 500
Dr. Clay: That mud bath might actually be good for you Geology for Investors

November 19th, 2015

Michael Curran goes down-market shopping for winners Streetwise Reports
Five world currencies that are closely tied to commodities GoldSeek
TransCanada: Pipelines? Pfft. We don’t need no stinking pipelines Stockhouse
Why Donald Trump’s presidential campaign actually warrants attention Equities Canada
China probably raised gold hoard again in October, adding 14 tons NAI 500
Dr. Clay: That mud bath might actually be good for you Geology for Investors
TiO2 World Summit 2015: “Suppliers listen but they don’t hear” Industrial Minerals

November 18th, 2015

Five world currencies that are closely tied to commodities GoldSeek
TransCanada: Pipelines? Pfft. We don’t need no stinking pipelines Stockhouse
Is there a bright spot in commodities? Ask Paul Renken Streetwise Reports
Why Donald Trump’s presidential campaign actually warrants attention Equities Canada
China probably raised gold hoard again in October, adding 14 tons NAI 500
Dr. Clay: That mud bath might actually be good for you Geology for Investors
TiO2 World Summit 2015: “Suppliers listen but they don’t hear” Industrial Minerals