Interesting article about Oil

wanghong

--------------------------------------------------------------------------------
Below is an Interesting article I found, which says that.....Do not
4 g0 C0 M4 y7 w$ |expect much from Crude Oil producers and future is not with the
/ P- H5 ]# G1 e! ]2 j0 u* h4 D' \5 _companies producing Jet fuels but Biofuels. Also no wonder if some of
these oil producer will go bankrupt or out of the business even if
  D5 P8 a2 s) J+ o: xcrude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils
) T- T" o( `: o/ E! m! e8 ]: v4 L
4 ]0 m* E' U1 @Recently OPEC reduced crude oil production twice over just a few
" h3 M7 v- l; {5 r7 d3 v8 imonths. 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.

5 W1 V/ Q3 c/ D
" Z+ Y" }, b) ^) N1 GThere are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:

7 ?! V; k. u0 r. b4 X
1. 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.


8 m8 \1 ^: q& p2. New natural gas has been found in Pennsylvania and West Virginia.
+ `6 O, s* E& F8 n( G7 _- J, WThis is the largest find in North America.
% h& n  q4 D' i

- c& ]" a$ D+ ?2 s3 t* D% b  ]3. New methods of injecting CO2 and surfactants into oil wells is
0 Q$ M+ x; H9 L, c5 a! }. E5 n7 V( obeing used to double their output.
0 U: ?& H/ e; U2 F2 X+ `% x
& c5 _  o( ?, Z. {* z
4. Production of bio-fuels is beginning to reach critical mass. Bio
# b( r! e5 J# l9 g3 zfuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
* W3 c1 R0 f/ e7 j' P* r6 C& i% j; O! ^racing to produce bio fuels.

5 D3 v" e2 d0 |) D) J- ]# x
5. Virtually every restaurant in the US and all food processing plants
; q, R( v$ G  T# ?" L7 @5 Mare now selling their used oil to bio-diesel producers. Every pork,
; w- g* c* C' M+ P& d7 Lcattle, turkey and chicken processing plant will soon sell their fat
, o8 S; m9 m: P* Lto bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.

0 l! L$ Q& w& R6 v  N8 O7 d
6. There are 99 nuclear reactors in various stages of planning and
8 F/ w  `1 ~* I9 }1 Yconstruction around the world at this time. Several hundred more are
expected to be built in the future. Much of the energy they produce
! l" _; n2 l; @: x2 R' C, C9 E# ~, ^will replace oil.
8 v3 G2 i/ P6 t# B. c# t$ S3 j# T
- Z8 E( ^5 Z; s( {) z6 q8 s( o
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
4 m/ f. q! M; qare experiencing 20% to 25% better fuel econony with the new
2 k" c0 p1 f: ?equipment.


Airlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.


8. Cities and counties throughout the US are selling the rights to
( s# G* ~2 h  U# @capture methane gas from landfills. This is a huge source of gas
# V4 k2 S4 X/ M5 z5 `4 p5 B- Favailable at very little cost or risk. The gas is displacing crude
1 c% H. w. x- v. Goil.

2 X8 s+ Y- q( d' @5 s$ ^
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
oil wells.
- V0 ?/ {, b9 x1 x' O

10. Solar, wind and ocean energy is displacing oil as an energy
source. Three new wind turbines are being erected every day in the US.
; E) a% C: l" `* v7 R- Z3 e

" E: W+ m5 |$ ~# I8 l! OEach of the above by itself will not make a large difference in the
5 A3 V3 i, I! E  p% hprice 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
) |, c$ o1 F) ~' R! Uto control oil prices.
) t5 h; v5 a7 S
2 n' T  }* y$ E' r5 P- W
* S- M1 _1 l" D+ Q+ V4 F1 pWith the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
value .....
/ v2 }9 i9 J$ {. A- j% _1 ZIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
" A6 J2 Y! `7 \$ N
: T" |# }0 j4 y* X! B
2 W+ ]& t/ u/ G, g$ r% CThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only