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High Oil Prices Encourage Gold Investments

High oil prices could help the consolidation of Gas to Fluids (GTL) as a mainstream fuel, experts stated. The higher oil prices also encourage gold investments and the whole gold industry. The price of gold have just reached the lowest point since 2011 and that is why gold has become the best investment opportunity right now. The best place to invest or buy physical gold is still Dubai and the UAE. There have been lots of different options to buy gold online and that are still the best and most save investment options i 2018

The fuel’s development recently marked a historical phase as Qatar Airways flew its first airplane powered by GTL.

Robin Mills, a Dubai-based oil economic expert, claimed: “The process looks possible when oil costs are climbing while gas costs remain low.

“GTL is a somewhat costly gas and its success or failure as a preferred source relies on the oil costs. Besides being an aviation gas, GTL is likewise a cleaner choice to diesel. It is projected to play a vital function in aviation and road transport.”

Oil last traded at $80.50 a barrel and gas at $4.79 per million British thermal system (mm/BTU) at the New York City Mercantile Exchange.

So far, Qatar, Malaysia and also South Africa are the three nations with GTL production capability.

Qatar promoted itself as the “GTL resources of the globe” back in 2006, having for a short period of time also run buses on the fuel.

It financed a carefully safeguarded research study executed by Rolls Royce to develop air travel engines that would be powered by GTL.

Ultimately, the GTL trip from London to Doha occurred on a Jet A340-600 airplane utilizing Rolls-Royce Trent 556 engines.

GTL technology makes use of a refining process to transform natural gas right into liquid fuels such as low-sulphur diesel and naphtha, among other items. Supported by its huge gas books and abundant funds, Qatar has a side over the other two GTL producers – Malaysia and South Africa.

“Regarding exactly how prominent function GTL will certainly play in the worldwide furl markets depends practically completely on Qatar.

“They don’t have much oil however lots of gas. They have made substantial financial investments both into GTL as well as LNG manufacturing. If the Qataris play their cards right, they must exploit the current possibility of relatively high oil rates and also reduced gas costs to advertise GTL,” claimed an Oryx GTL official associated with a task in Qatar.

GTL jobs have received significant focus in Qatar over the past numerous years as well as Qatari Government had actually initially established a target of developing 400,000 barrels a day (bbl/d) of GTL capability by 2012. Nevertheless, task cancellations and delays because the North Field reserve evaluation has substantially lowered this target.

In February 2007, ExxonMobil introduced that it had actually cancelled its planned Palm GTL project because of climbing costs. The Hand task was initially scheduled to produce 154,000 bbl/d of fluids for export, although estimated prices spiraled from $7 billion (Dh25.6 bn) to $15bn, according to quotes. By 2012, Qatar is likely to have 177,000 bbl/d of GTL ability at 2 centers: the Oryx GTL plant and the Pearl GTL task, Energy Information Administration (EIA) the US Government’s peak energy evaluation firm stated.

Oryx GTL is a joint-venture of QP (51 percent) and also Sasol-Chevron GTL (49 percent), and also has the capacity to create 34,000 bbl/d of fluid gases.

The plant was formally appointed in June 2006, yet technical issues stopped the consortium from filling the initial export cargo up until April 2007.

The plant stated market insiders is generating regarding 30,000 barrels of GTL daily, every one of which is exported.

The Pearl plant will be 51 percent owned by Qatar Petroleum, though Shell will work as the driver with a 49 percent risk.

The facility is anticipated to use 1.6 Bcf/d of gas feedstock to generate 140,000 bbl/d of GTL items in addition to 120,000 bbl/d of connected condensate and LPG. The Pearl GTL project will be developed in phases, with 70,000 bbl/d of GTL item capability anticipated by 2010 and a second phase anticipated in 2011.

Initially approximated at $4bn, market resources believe the Pearl center will currently cost in between $12bn as well as $18bn, claimed the EIA.

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