Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
& J) z7 p; u: l9 J: Uexpect much from Crude Oil producers and future is not with the
companies producing Jet fuels but Biofuels. Also no wonder if some of
, [7 v# m; d! P/ M, [3 v: @these oil producer will go bankrupt or out of the business even if
2 F" M9 ^7 Y! }% Z) f0 P- |' V% }crude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils
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7 \5 [- p) ~+ a, F  ^Recently OPEC reduced crude oil production twice over just a few
  B/ V$ Y& x) k7 ?( ~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.


There are several reasons the price of oil is decreasing in the face
; V. |( @" N. O$ |of so much news. These reasons are:

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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.
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, P. a3 k( U& i& ?4 w$ c* 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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5 v. v1 W2 b0 z/ }: u0 m0 _3. New methods of injecting CO2 and surfactants into oil wells is
4 m8 o' m- L4 _6 o: i) Ibeing 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
1 ~( W* ?: l' I1 `  }3 Ipotential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.


0 ]" K( a: v0 T/ C5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
: N4 D8 M- w- Wcattle, turkey and chicken processing plant will soon sell their fat
* b) I0 P2 N( ~3 tto bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.
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) ^3 {/ C  b% ~( p6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
+ N" X% R8 k  U7 B+ N1 Rexpected to be built in the future. Much of the energy they produce
3 _5 l9 {8 Q9 a) D  Qwill replace oil.
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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
, ?2 t/ u6 l- F( m: V+ j/ Yare experiencing 20% to 25% better fuel econony with the new
: j! B  Q$ j. o# u! \' M; L4 bequipment.
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8 S4 ?  J4 s2 h! g6 N4 M1 a& D8 a" t( k7 UAirlines are flying airplanes with bio-fuel. They are finding the bio-
1 ?6 E/ y. E1 d: S/ h* Afuel is cleaner and performs better than jet fuel.

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8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
4 M! p5 d* N$ iavailable at very little cost or risk. The gas is displacing crude
9 I7 \+ B: H( @/ soil.


9. Coal is being transformed into a clean burning liquid fuel. The CO2
- }. Q6 p+ y) s: Rproduced as a byproduct is sold to oil companies for injection into
2 n# W# {$ Q( N  j5 |7 w4 F1 r9 q" Goil wells.

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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.
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1 ^; W6 d! D! T" O: k. iEach of the above by itself will not make a large difference in the
2 s' u9 @4 P) N+ O2 l: \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
to control oil prices.
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With the above scenario, I still believe that there are under
3 k* y: L. Y, [; Y$ H8 W) sperformed OIL companies and probably they are yet to get the justified
6 a1 [) D/ o3 J: u/ p' z& y) Nvalue .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...


" @/ D* ]) ^; s; @( bThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only