Interesting article about Oil

wanghong

--------------------------------------------------------------------------------
Below is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
# Q" ^0 t: q, _& ecompanies producing Jet fuels but Biofuels. Also no wonder if some of
: `3 T" S7 G5 a( I4 R" n0 N; Sthese oil producer will go bankrupt or out of the business even if
$ \+ M0 `7 v) ~% Qcrude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils
& W( r( P' ?% q  i( m# _) G
1 m  X5 q  j, aRecently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
. ^8 Z, [. t4 u7 A, uA year ago these things would have spiked the price of crude oil by at
, i% b/ G5 O+ A& R& ?' |; @5 Q3 [least $50.00 per barrel. Today, oil price declined by a record amount.

% {+ C) H5 [" c; i3 H
9 F% J2 z" M8 h5 X+ h# mThere are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:


1. New oil has been found in Canada, Montana, North & South Dakota and
0 n% S2 q" O" S: \in the ocean near Brazil. Each of these oil fields has more oil than
Arabia.
, S1 y2 S8 L. x8 w

2. New natural gas has been found in Pennsylvania and West Virginia.
+ l* D1 K+ }$ h/ l8 v8 qThis is the largest find in North America.
7 v& }  n; c* }3 s( U
) q( G' r7 p+ G6 F! s# Q- ]: C; X
( R4 z+ c+ a6 T' f2 e; Y% g& b* Q3. New methods of injecting CO2 and surfactants into oil wells is
9 J: T" b6 K* d7 X0 @2 A2 J3 obeing used to double their output.


8 j* x5 ~2 h. e& z  ]4. Production of bio-fuels is beginning to reach critical mass. Bio
fuel is being produced from many plants and algae. The production
! {& [5 F9 ?* r, \1 @: Cpotential per acre in some cases is astounding. Many countries are
% n6 X* h, U- |7 M& R- fracing to produce bio fuels.
- v* Y! a- x1 q6 Z' P' B$ ?

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.

" ]& I  O$ F5 C( C$ P
/ y, e+ E" f! G4 N1 w6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
6 z! Z$ r0 |' L! Dexpected to be built in the future. Much of the energy they produce
  o! R. q( c# i$ ~, C8 a! Z3 ]* L# _& Fwill replace oil.
- `, ^3 W5 {+ C: d* g4 p
$ i- u! {- Q; T' D; f
7. Every company in any form of transportaion business is replacing
; N3 o# d  Z: golder equipment such as trucks, airplanes, train engines, ships, etc.
3 s6 b1 W8 v, B/ Y* m7 a' p$ Z# pwith new more fuel efficient equipment. Airlines and railway companies
5 _& E. ~  t, w- M5 y8 sare experiencing 20% to 25% better fuel econony with the new
equipment.

) d' g$ A0 D! f+ v5 t
Airlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.

  L' ~6 }$ }, Y' w0 w* _# m3 e
  e$ U& Q0 c& y6 G0 H: [; ~( c8. 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
oil.
0 }! `6 \! U" ], ~. {

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
" I1 C4 |' P6 A3 U' joil wells.


' E# O  v, D  z, v# p10. Solar, wind and ocean energy is displacing oil as an energy
8 q' w/ u$ O+ e6 b& g* y+ N' X* qsource. Three new wind turbines are being erected every day in the US.
, L" K) Y$ f. r
" R9 i6 k$ p- m; ?/ `
- P, Q" d! Z! U  P" s% G% OEach 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
: e# e; D( z- X1 c; G$ \+ ato control oil prices.

9 r0 k5 r% @+ k& p
With the above scenario, I still believe that there are under
- I- K& e8 \, l1 F4 J& l7 Y- N3 Kperformed OIL companies and probably they are yet to get the justified
3 W$ p- b' S6 R9 {$ X, _  avalue .....
) c& _' @: t9 X. }4 H0 `6 z$ dIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
& |8 Z: @3 `* Z% O

; T! [& M* X, }  Q5 A: {/ IThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only