Interesting article about Oil

wanghong

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) D/ N8 M7 {' @1 j# g2 H3 t. xBelow is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
: P$ S! k  R7 {  h: V$ hcompanies producing Jet fuels but Biofuels. Also no wonder if some of
these oil producer will go bankrupt or out of the business even if
4 u7 a5 l) I5 d: Icrude prices improves. This implies also to good names such as Shell,
4 ?0 A5 i0 {6 K7 m1 |/ Q" VEXXON, BG, BP, Cheveron ....xyz.. oils

Recently OPEC reduced crude oil production twice over just a few
0 a. p# T8 L  Wmonths. 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
' [, u/ S: \& U* |; s3 q+ }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
2 Z7 U: K, {, e7 l1 Y" x  tof so much news. These reasons are:

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1. 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
1 p# ~, \; s) n4 ?- J  SArabia.
+ q% N. |7 u* K  `
. P6 ]" c) t/ z1 ^7 o# ^' F
% g7 W$ o0 R5 v5 \! ~2. New natural gas has been found in Pennsylvania and West Virginia.
& Q% F% g) F8 lThis is the largest find in North America.
7 e8 f/ L. H8 g

3. New methods of injecting CO2 and surfactants into oil wells is
2 }0 w) a& h9 Ibeing used to double their output.
  Q7 M% |: r( \3 D

3 c2 v4 ~9 G0 t4. Production of bio-fuels is beginning to reach critical mass. Bio
  j1 t3 p6 }. H: w9 F& v* t% `4 Xfuel is being produced from many plants and algae. The production
8 [5 _. a6 m8 ppotential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.
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  X- H: W. ^" Z: \/ `4 F
5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
cattle, turkey and chicken processing plant will soon sell their fat
& f( |# z0 M0 f4 u5 x) A  ato bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.

; z  b: n, ^- r
$ D& c0 J9 M- ?" d6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
# P8 @* i# V/ k- H+ |) `expected to be built in the future. Much of the energy they produce
/ U5 t; o% w0 b, ]. |1 Xwill replace oil.
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3 a4 b4 b; m$ P  f6 U1 _5 T7. Every company in any form of transportaion business is replacing
" @5 z1 N: ]) solder equipment such as trucks, airplanes, train engines, ships, etc.
with new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
0 C& @! t: k( l/ m- v; fequipment.


% G$ z& M) c9 `; pAirlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.
' n. T1 G% R8 I; A3 O4 t+ v
  B, n8 Z& I$ \
- h2 ~0 g) S3 Q5 s" h1 U8. 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
9 Y7 \  ^# E" moil.


" ^. b2 v+ R  e  t9 ^+ c9. Coal is being transformed into a clean burning liquid fuel. The CO2
" C7 f" b& X* z( @) z$ m6 Mproduced as a byproduct is sold to oil companies for injection into
- L1 P, K; [5 D3 i4 V: O1 O, roil wells.
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# f4 s& A9 V) e1 N" h+ p
' |4 b: H. d( ]9 S8 y( Q10. Solar, wind and ocean energy is displacing oil as an energy
' c. e  D. x- v! _9 gsource. Three new wind turbines are being erected every day in the US.
3 E' U3 O, a- f; l. ~' r4 E0 x1 b$ [+ Z

Each of the above by itself will not make a large difference in the
price 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
1 c- A8 k7 t: F0 D% Qto control oil prices.


With the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
) \2 b7 K, G" b, E& V3 Qvalue .....
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