Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
2 m. \" A* K4 c, N. q# g3 M1 nexpect much from Crude Oil producers and future is not with the
: h( o: Y) _7 Acompanies producing Jet fuels but Biofuels. Also no wonder if some of
/ f1 u# z6 N/ a; O, S$ Lthese oil producer will go bankrupt or out of the business even if
" [' g! z# X8 T; w( f9 k5 Ucrude prices improves. This implies also to good names such as Shell,
6 _# N9 }$ G8 j$ E. YEXXON, BG, BP, Cheveron ....xyz.. oils
. P' W5 Q; o% e6 _6 g- J1 x
Recently 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
; O' E! O5 w1 H/ m4 j6 U3 i  Ileast $50.00 per barrel. Today, oil price declined by a record amount.

' _2 |  t% \- E! }5 @, a/ m
There are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:

' G$ w! p5 w3 y; ?+ E8 w
8 r/ Q! y/ R' I% p# X* ^9 o1. 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
- P3 p+ Y4 F1 l3 {& F2 jArabia.
% k8 Y8 Q. t3 Z, Y
  ]0 o* r5 }/ |  r/ c* }
2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.
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3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.
, ?& a9 q( z8 c9 W5 [

4. Production of bio-fuels is beginning to reach critical mass. Bio
8 s4 P. U( I# q2 x5 d! F& nfuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.

. [$ W# ?2 W$ t. i" s
# {: y8 n, t3 b& D) ?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
to bio-diesel producers. One pork processing plant in Oklahoma is
1 e9 L' e) d( k5 s% ]- {producing 30,000 gallons of bio-diesel per day from pork fat.
! E& W7 R6 o' a+ ], ^9 R

6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
/ ^  r5 V2 v3 i. t6 T) ~2 Z9 Hexpected to be built in the future. Much of the energy they produce
4 ?+ g  x$ P7 R* M5 K) {will replace oil.


+ q" m) u8 }' C- d  s) ?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
, y0 N8 o5 Z5 Mare experiencing 20% to 25% better fuel econony with the new
equipment.

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# c/ p# P, N: i( S# `3 KAirlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.
" `7 U; x) c1 O+ {# l

8. Cities and counties throughout the US are selling the rights to
. H" M9 O- ~: Scapture methane gas from landfills. This is a huge source of gas
- d8 C, V3 |+ [* ^available at very little cost or risk. The gas is displacing crude
" B. w8 s0 \: f: _% v. c3 doil.


9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
1 u, t* L& [3 R7 ?7 ]  O+ t2 D/ V  coil wells.
4 \3 y# U1 N3 @5 M2 b# k: s* ^' t4 M
) ^$ I0 X3 K0 a: x6 y* x
7 I; h, J: U4 K5 G10. Solar, wind and ocean energy is displacing oil as an energy
0 M- T$ _+ l( H' Msource. Three new wind turbines are being erected every day in the US.
& C7 m6 n- \- v; c. ?4 \& c) r

' Y5 {! @7 q0 N/ U6 K3 hEach 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
3 Z) a$ V7 T9 M* K. gchanging. The important thing is that OPEC no longer has the ability
5 u) F1 b9 D/ g8 Bto 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
$ A) j2 J/ [: U7 k4 r7 v0 B2 Dvalue .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...


The above articles are from WSJ .............PUBLISHED ON 9TH JAN
0 s5 V( B# Y/ y8 I( u: v3 J2009 ... FYI-Only