Interesting article about Oil

wanghong

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4 g5 T8 }6 a( cBelow is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
companies producing Jet fuels but Biofuels. Also no wonder if some of
/ L/ _$ J6 y' ~. q9 |  C, Dthese oil producer will go bankrupt or out of the business even if
- R! u2 d4 e7 ~crude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils
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: |4 K/ J# q$ C9 h4 ^! uRecently OPEC reduced crude oil production twice over just a few
# w3 ~! o' v% W9 nmonths. 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
2 U* I; d4 z9 C# a+ D( lleast $50.00 per barrel. Today, oil price declined by a record amount.

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; [0 c: U2 c; \2 z! d. UThere are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:


1 r7 F! d5 y0 r: _- R/ @1. New oil has been found in Canada, Montana, North & South Dakota and
6 D& w/ X# f" `% ]/ V/ Win the ocean near Brazil. Each of these oil fields has more oil than
Arabia.
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$ {/ K' p* R+ M# K2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.
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  N9 X3 y% o/ E/ |3. New methods of injecting CO2 and surfactants into oil wells is
+ x3 V0 `# v+ l, A0 Cbeing used to double their output.

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( Z) y( v# T/ H# G3 ?, ^! a4. Production of bio-fuels is beginning to reach critical mass. Bio
fuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
, l& a- d, I' hracing to produce bio fuels.
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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
producing 30,000 gallons of bio-diesel per day from pork fat.

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6 q3 H# X. B. `6 A! f6. There are 99 nuclear reactors in various stages of planning and
- Q% R; }( z3 X2 ^: f" mconstruction around the world at this time. Several hundred more are
expected to be built in the future. Much of the energy they produce
' t. L+ W& D6 S, y3 A+ G* Nwill 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.
$ n6 r' I8 v* f5 N/ r: o9 awith new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
equipment.


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
; Z( }6 d% ?5 C: C9 Q6 h9 Mavailable at very little cost or risk. The gas is displacing crude
oil.
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9. Coal is being transformed into a clean burning liquid fuel. The CO2
1 S2 X6 r3 `. ?! D$ W, k/ Tproduced as a byproduct is sold to oil companies for injection into
4 Y- P& n  i3 ~5 i% k6 Q; Koil wells.

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5 o3 k! M# f' z- r10. 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
( u% m0 l4 z' P* dprice of crude oil but the sum of all of them together is world
5 ~" I# L4 L7 j0 {& G/ B  ~changing. The important thing is that OPEC no longer has the ability
to control oil prices.
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$ K+ o4 g+ ?6 n" f# n# nWith the above scenario, I still believe that there are under
9 d) P, O$ U; xperformed OIL companies and probably they are yet to get the justified
; @1 C9 C$ S0 h, C0 m2 Avalue .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...


* \6 D# e: A5 n+ O$ m: Z9 W0 ~: SThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only