Interesting article about Oil

wanghong

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8 y( C' V  S1 ]' D/ h' q& UBelow 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
* E- i- A' |$ v2 h5 y4 Othese oil producer will go bankrupt or out of the business even if
! @) y% f: |: d. `: o, |, \; bcrude 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
6 t: t: _6 |/ i. t# Z: i" \6 gmonths. 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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' K2 j% }! T& d, g# X) @There are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:

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. Q! f& i3 T: V1 t0 M8 g1. New oil has been found in Canada, Montana, North & South Dakota and
/ I" }" }5 O3 J8 ~( H% |5 e( K4 Fin 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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! a3 M9 j9 A* J8 P/ u. s3. New methods of injecting CO2 and surfactants into oil wells is
: |+ k; B0 x: f$ f8 b9 lbeing used to double their output.

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4. Production of bio-fuels is beginning to reach critical mass. Bio
% P& b/ }/ Y4 U' {2 ~2 h& mfuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
+ x$ C5 B  h) \8 Z$ y8 Eracing to produce bio fuels.
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$ B' F* z9 {7 k; ?" K5. Virtually every restaurant in the US and all food processing plants
, ~, K& W6 d# e" A# Q! Iare now selling their used oil to bio-diesel producers. Every pork,
cattle, turkey and chicken processing plant will soon sell their fat
/ S- S2 m6 c4 {1 E! \6 xto bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.


4 @$ ^* C7 B' h  `8 B) Z1 Z6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
( C* h4 ]: T% e/ j4 ]expected to be built in the future. Much of the energy they produce
will replace oil.
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7. Every company in any form of transportaion business is replacing
: M2 Y6 D. g- s9 P" xolder equipment such as trucks, airplanes, train engines, ships, etc.
' [2 l; r* g) U6 a( x# m/ @with new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
equipment.


; o* K1 m  A4 w1 J. FAirlines are flying airplanes with bio-fuel. They are finding the bio-
" E+ \0 t5 z7 ffuel is cleaner and performs better than jet fuel.
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1 T1 C  U. J& N- |% z4 K8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
% i9 B* U; ~* x! [8 |! p/ ravailable at very little cost or risk. The gas is displacing crude
oil.
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3 S" L3 z& D0 [: ], s1 ]
  J1 T* }) G% x, \8 L: Z: T9. 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.
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& Z( X, u/ \5 o, n6 q7 B& K10. Solar, wind and ocean energy is displacing oil as an energy
3 ^  x) l; F; k* f& U$ ]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
price of crude oil but the sum of all of them together is world
" G6 ~( Y0 y4 w" ~5 zchanging. The important thing is that OPEC no longer has the ability
to control oil prices.


With the above scenario, I still believe that there are under
( {7 c' i* i: b  m* j; O( j; b( Xperformed OIL companies and probably they are yet to get the justified
- D$ h1 {& ^9 U4 e- r3 z; {/ v" Jvalue .....
' C0 J" s% v7 k/ |. X& X& u+ B; E' }IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...


: j% W5 |; p  `4 ~7 }: G5 TThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
4 M5 E3 k: v0 l! i" @" w0 q- X. T2009 ... FYI-Only