UPI Energy Watch

Oil shaky despite slight rebound Monday.

Crude oil prices rebounded to near $90 a barrel after falling Monday. Analysts still hold that global oil prices more than likely will continue to fall as economic tensions spread and global demand slides.

Industry leaders expected the passage of the $700 billion bailout bill by the U.S. Congress to turn things around, but the stock markets took another hit Monday anyway, Ireland's RTE Business reported.

Despite a small rebound in prices Tuesday, many companies are still being cautious. In Canada, particularly Alberta, energy stocks dropped and oil sands companies that were growing just last month are starting to table projects for fear of losing investments.

"We're going through a real maelstrom of turmoil and turbidity here, and it ain't pretty," Dick Gusella, president and chief executive of Connacher Oil and Gas Ltd., told the Calgary Herald.

Connacher's stocks have fallen about 12 percent in the last couple of weeks, and the company was forced to announce it would not be expanding one of its oil refineries as planned.

Another more established oil sands company, Suncor Energy Inc., was hit even harder than Connacher, posting a 14 percent drop in its stocks. Suncor's stocks have dropped 41.6 percent since the beginning of the year.

Canadian Natural Resources Ltd. said it was down, along with EnCana Corp., Penn West Energy Trust and Bankers Petroleum Ltd.

Few companies are now able to find the capital needed for projects like Connacher's refinery expansion. They will now have to spend only what they are bringing in as revenue.

Despite global crunch, Indonesia says it is OK.

The Upstream Oil and Gas Regulating Body said fears gripping the global economy will not affect investment in Indonesia's oil and gas exploration and production.

The majority of oil and gas exploration and production in Indonesia is being done by companies that generate their own capital, BP Migas Deputy Head Abdul Muin told Antara.

"They are not affected by the current global financial crisis. After all, they have enjoyed windfall profits from skyrocketing of the world crude prices," he said.

Only investments made by smaller companies to those bigger companies might fall, but that should not be enough to really impact the work being done. Muin did, however, urge the Indonesian government to continue its investments, keeping the money local so the companies will keep their money where it is as well.

Despite Muin's optimism, however, Indonesia's exports fell in August by 0.43 percent as global oil prices fell on economic concern, The Jakarta Post reported.

"Exports declined because the volume and the prices of strategic commodities were down," said Ali Rosidi, deputy chairman for distribution statistics at the Central Statistics Agency.

PetroVietnam will explore in Myanmar.

The PetroVietnam Exploration Production Corp. announced it has signed a production-sharing agreement with a joint venture owned by Vietsovpetro, EDEN Group Company Ltd. and Myanmar Oil and Gas Enterprise. The companies will produce oil and natural gas at the Moattama M-2 block, located off the coast of Myanmar.

The agreement was signed in Myanmar's administrative capital of Nay Pyi Taw. PetroVietnam will hold a 45 percent stake and the joint venture will hold 55 percent.

This is the first project in Myanmar that a Vietnamese company will hold interest in, and PetroVietnam announced it is only the second overseas project for the company.

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Closing oil prices, Oct. 7, 3 p.m., London

Brent Crude oil: $86.75

West Texas Intermediate crude oil: $90.20

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(e-mail: energy@upi.com)