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
companies producing Jet fuels but Biofuels. Also no wonder if some of
' Y( Y- q7 C+ I% L5 a% ythese oil producer will go bankrupt or out of the business even if
  ?' b' f  A8 J. |6 p: |4 x+ [crude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils
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Recently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
( O9 h! C. ^" W9 m) \A year ago these things would have spiked the price of crude oil by at
8 K6 C0 d3 G5 qleast $50.00 per barrel. Today, oil price declined by a record amount.
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8 G; R! [. l1 o+ J+ a+ |There are several reasons the price of oil is decreasing in the face
7 e5 P- N! i7 w: h( pof so much news. These reasons are:


, I. L* h# s6 L1. 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
$ O, Q9 o, v& b+ i0 I, }# pArabia.
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0 i/ i  z1 r6 O; S) W% |" [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
8 E0 T* j: W. u2 h( M8 \being used to double their output.
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4. Production of bio-fuels is beginning to reach critical mass. Bio
fuel is being produced from many plants and algae. The production
4 S# k$ \) Z- Q; ~potential per acre in some cases is astounding. Many countries are
$ q" S- U" E1 s$ aracing to produce bio fuels.
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( {; g: g: N" r. I5 o0 }5. Virtually every restaurant in the US and all food processing plants
; u7 j, V4 h$ mare 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.


  J8 Q7 b8 S( W8 @- q6. There are 99 nuclear reactors in various stages of planning and
+ \" Z( D- d1 m$ E3 ]5 gconstruction around the world at this time. Several hundred more are
0 U! D! b/ }9 n! i6 q( kexpected to be built in the future. Much of the energy they produce
will replace oil.


7. Every company in any form of transportaion business is replacing
& ]# m$ L1 {0 L! b: P, M3 l# ]older 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
equipment.

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' A6 X& F% t+ X/ Q0 \+ P7 PAirlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.
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( w2 z% O( `# W8 m( Y/ p" l8 [8. Cities and counties throughout the US are selling the rights to
2 [7 h+ q& L' R) w; Ycapture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
oil.

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! t. A9 H2 O5 T6 B$ x5 U9. Coal is being transformed into a clean burning liquid fuel. The CO2
- z( r! q. k% E6 `produced as a byproduct is sold to oil companies for injection into
2 n% ?$ {2 H* R2 J$ eoil wells.

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6 a- A$ i& A- S6 \$ i1 Y) W. D10. 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
' F8 v0 ?) S5 ~* eprice 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
to control oil prices.
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  m9 Z1 {2 r( C7 }) ?  K& sWith the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
value .....
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