Interesting article about Oil

wanghong

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% A& s5 M0 Y/ i  eBelow is an Interesting article I found, which says that.....Do not
9 K5 N9 s: v* {. e: c& \expect much from Crude Oil producers and future is not with the
% `: t% \, h( s- t' _( L3 qcompanies producing Jet fuels but Biofuels. Also no wonder if some of
these oil producer will go bankrupt or out of the business even if
/ K/ v% z0 S, k" r+ acrude prices improves. This implies also to good names such as Shell,
- ]$ N) O4 t5 C0 P) {4 R5 rEXXON, BG, BP, Cheveron ....xyz.. oils

Recently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
+ U" @" W' Y) B! EA 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
of so much news. These reasons are:


1 r2 s3 G! X! {  i* M1. 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
Arabia.

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2. New natural gas has been found in Pennsylvania and West Virginia.
% R  ~7 d! j$ H+ u7 MThis is the largest find in North America.


3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.
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1 M/ Y2 U3 e/ S; f# c! s! L4. Production of bio-fuels is beginning to reach critical mass. Bio
fuel is being produced from many plants and algae. The production
. B  j9 z# J) s! l! O1 }0 Opotential per acre in some cases is astounding. Many countries are
! |3 k& w7 X# m* B* s$ R! q3 uracing to produce bio fuels.
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+ y+ n6 y- X2 g9 W5. Virtually every restaurant in the US and all food processing plants
( V- B! h5 p2 o) W+ Ware now selling their used oil to bio-diesel producers. Every pork,
$ S1 `5 o+ i( Fcattle, turkey and chicken processing plant will soon sell their fat
to bio-diesel producers. One pork processing plant in Oklahoma is
5 u. S2 Y* j' Bproducing 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
2 [) F) B  w4 h" @* Mconstruction around the world at this time. Several hundred more are
; f' y' C; b! mexpected to be built in the future. Much of the energy they produce
1 b* H. R) e4 e$ A* W3 ^will replace oil.
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7. Every company in any form of transportaion business is replacing
older equipment such as trucks, airplanes, train engines, ships, etc.
with new more fuel efficient equipment. Airlines and railway companies
0 J6 @) }; F. u# c. Rare experiencing 20% to 25% better fuel econony with the new
4 w1 G& Z4 `- `0 W0 r9 Q0 hequipment.


. f* ~# u2 d" T% YAirlines 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
available at very little cost or risk. The gas is displacing crude
- L* k! M( v" U4 boil.
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5 j; O$ o3 s8 R/ E9 R" x9. Coal is being transformed into a clean burning liquid fuel. The CO2
; x& Q$ W. h" b5 a& l( S+ Oproduced as a byproduct is sold to oil companies for injection into
oil wells.
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10. Solar, wind and ocean energy is displacing oil as an energy
: u8 x2 ~" }& ~7 Csource. 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
' k+ X$ F: C/ A0 d/ |  o3 Jprice 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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+ ?! d* C/ l6 ?: r9 O2 |With the above scenario, I still believe that there are under
  G- j# c  ^9 A0 n0 Y' X" lperformed OIL companies and probably they are yet to get the justified
value .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...

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The above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only