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 X4 {: I+ v3 e! H4 f. X* r$ Ecompanies producing Jet fuels but Biofuels. Also no wonder if some of
1 {6 R! o4 E- O3 E6 F$ A7 E" Qthese oil producer will go bankrupt or out of the business even if
crude prices improves. This implies also to good names such as Shell,
2 ^3 K2 S: N5 T, T, o/ Q8 i- UEXXON, BG, BP, Cheveron ....xyz.. oils

/ g6 M2 h0 M! Q7 X, lRecently OPEC reduced crude oil production twice over just a few
- x1 U7 p% r, i: ]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.
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There are several reasons the price of oil is decreasing in the face
$ k0 {( N$ [0 @& Hof so much news. These reasons are:
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- k4 J5 w+ E8 u1. 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.
This is the largest find in North America.
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3. New methods of injecting CO2 and surfactants into oil wells is
: W9 b+ g! h6 ~/ V9 p+ m. Y4 G: E5 F) Jbeing used to double their output.
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6 R% O( Z" O5 R6 q4. Production of bio-fuels is beginning to reach critical mass. Bio
- u/ z8 D! P7 N* u. B2 afuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
' W! F6 ^/ h0 `7 {' [" z; j. Sracing to produce bio fuels.
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" I( @% L$ {* M5 {/ Z, U5. Virtually every restaurant in the US and all food processing plants
4 a* y: v7 b/ r1 c6 t( H# ~6 ware now selling their used oil to bio-diesel producers. Every pork,
7 Y! e4 }2 D* B1 B# Ocattle, turkey and chicken processing plant will soon sell their fat
7 g/ s2 k4 S! fto bio-diesel producers. One pork processing plant in Oklahoma is
- @' y) ?5 G/ r4 `9 dproducing 30,000 gallons of bio-diesel per day from pork fat.

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1 C$ P+ K) T" v' I2 [9 t- H6. There are 99 nuclear reactors in various stages of planning and
$ g1 G" B$ c3 ^' ]' _construction 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.


/ C, `3 \6 j( Q/ N0 E7 q7. Every company in any form of transportaion business is replacing
older equipment such as trucks, airplanes, train engines, ships, etc.
. [. m1 }! z0 s' Twith new more fuel efficient equipment. Airlines and railway companies
1 w1 N+ E0 \2 C# [, d7 e3 Xare experiencing 20% to 25% better fuel econony with the new
equipment.
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; }) @1 d" `9 J2 M! sAirlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.
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& |% F+ i$ l7 X+ y5 T# ]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
: k2 U5 {; r& O2 q# {4 `. h/ @oil.

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9. Coal is being transformed into a clean burning liquid fuel. The CO2
' z' |+ c/ M" C% Y% e5 ]; G7 _produced as a byproduct is sold to oil companies for injection into
oil wells.


. ?# s1 _: n9 P10. Solar, wind and ocean energy is displacing oil as an energy
' Z- V, ?4 y  i. E" z- z  asource. 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
. i* B9 i& C  A- x; w* S! ]price of crude oil but the sum of all of them together is world
9 _; L  F) H6 {! \, v0 k3 C# Achanging. 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
6 h5 `8 S; K& d3 hperformed OIL companies and probably they are yet to get the justified
value .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...


1 Q+ W+ w( Y  ~The above articles are from WSJ .............PUBLISHED ON 9TH JAN
' [+ G# a' ^! U. f5 ?2009 ... FYI-Only