Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
3 m0 G+ o& v+ e+ @2 l! m* dcompanies producing Jet fuels but Biofuels. Also no wonder if some of
; ~1 I- \% Z* H/ a8 h' }5 athese oil producer will go bankrupt or out of the business even if
crude prices improves. This implies also to good names such as Shell,
( N# N$ C. ^5 }" U3 D$ [5 E) j! I2 kEXXON, BG, BP, Cheveron ....xyz.. oils

# C$ h' t9 C3 N( a) }6 T6 q$ E4 uRecently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
A year ago these things would have spiked the price of crude oil by at
least $50.00 per barrel. Today, oil price declined by a record amount.


There are several reasons the price of oil is decreasing in the face
- ]% @+ j7 Z6 o# I9 a6 T7 Wof so much news. These reasons are:
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& Q4 G# r* [3 w. c1. New oil has been found in Canada, Montana, North & South Dakota and
in the ocean near Brazil. Each of these oil fields has more oil than
+ ~$ J( v5 J  V1 X) Y  W) k( t* tArabia.
$ _; W$ c/ ~8 y: J( c# `
+ l* X+ J. X+ \* Y- i$ Q
2. New natural gas has been found in Pennsylvania and West Virginia.
0 y/ g3 C; V# L2 t: \( CThis is the largest find in North America.
+ Z. y6 O* x2 K

3. New methods of injecting CO2 and surfactants into oil wells is
, b5 V2 S$ C" l+ M) L, q9 D) Gbeing used to double their output.

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4. Production of bio-fuels is beginning to reach critical mass. Bio
! S4 x$ M. X  P- `1 Ofuel is being produced from many plants and algae. The production
5 ]/ N; H( A% ^( qpotential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.


# G: ^8 P0 ~+ m+ X$ A5. Virtually every restaurant in the US and all food processing plants
/ g" m% ~0 K# J1 M( Pare now selling their used oil to bio-diesel producers. Every pork,
cattle, turkey and chicken processing plant will soon sell their fat
3 Q/ w" ?' Y/ D; u1 }5 u  \) b, e: n# Xto bio-diesel producers. One pork processing plant in Oklahoma is
  Y. X4 W8 S( r1 {producing 30,000 gallons of bio-diesel per day from pork fat.
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6. There are 99 nuclear reactors in various stages of planning and
/ n" e: t0 m9 z3 w- D& V" ?; Qconstruction around the world at this time. Several hundred more are
expected to be built in the future. Much of the energy they produce
will replace oil.
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- j1 [" J( q# d# F0 Z7. Every company in any form of transportaion business is replacing
+ n5 A# z4 w% o( r# ^5 f, Zolder equipment such as trucks, airplanes, train engines, ships, etc.
2 J; ]" N" T3 m- @: c0 M; S% Nwith new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
equipment.
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( \* J' G- x( k  E5 D7 \Airlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.
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8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
% _0 l, [4 c1 h6 \8 k! javailable at very little cost or risk. The gas is displacing crude
0 k  D- U) c/ f( W. t( U, Boil.
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- f/ {8 R3 g7 o& Y8 t2 _) Y9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
oil wells.


- q6 K& m% V- E! h" Z% W/ V% `10. Solar, wind and ocean energy is displacing oil as an energy
source. Three new wind turbines are being erected every day in the US.

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Each of the above by itself will not make a large difference in the
" z8 }+ V, F' Y( f" T( m3 yprice of crude oil but the sum of all of them together is world
changing. The important thing is that OPEC no longer has the ability
to control oil prices.

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With the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
- G* C5 n- p! t3 H+ |value .....
! h* x$ q. v* V9 \) N; p+ M3 q! aIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
; [6 Q  n; e" G4 O3 P1 |

The above articles are from WSJ .............PUBLISHED ON 9TH JAN
5 o: m7 A/ M! Q- q/ Y2009 ... FYI-Only