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
; U1 m2 w/ F* cthese oil producer will go bankrupt or out of the business even if
crude prices improves. This implies also to good names such as Shell,
; b7 x# p. O* l3 g9 ^$ ^EXXON, BG, BP, Cheveron ....xyz.. oils

Recently OPEC reduced crude oil production twice over just a few
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.
9 J5 Z2 ~) U1 A# h9 J" A. Z9 t: [

There are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:


8 _/ z2 R$ ^* ?$ P! E, ?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
' ^2 j/ v4 V( I& h9 t3 t& ?Arabia.
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1 i/ n. E) _1 G; I2 c  m, F2. New natural gas has been found in Pennsylvania and West Virginia.
4 E" Z2 i* r: ^0 ]7 o3 w8 A' e3 k( JThis is the largest find in North America.
2 {% p0 Q' r5 w' ?( a( Z8 t

3. New methods of injecting CO2 and surfactants into oil wells is
3 V3 G2 B2 ~8 H# V/ d4 bbeing used to double their output.
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4. Production of bio-fuels is beginning to reach critical mass. Bio
7 {7 ?0 \4 d- x8 o/ f0 t* }fuel is being produced from many plants and algae. The production
: c2 A  L4 V7 {" V; a! tpotential per acre in some cases is astounding. Many countries are
1 M8 u* N% }; J1 g( v7 |9 N+ Cracing to produce bio fuels.


4 G; Z' _1 m, m5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
& D* _) G8 M* xcattle, turkey and chicken processing plant will soon sell their fat
2 P" E+ b( _! I. g( v4 t/ I3 x( ?to bio-diesel producers. One pork processing plant in Oklahoma is
, B" h# t5 ^* j* Nproducing 30,000 gallons of bio-diesel per day from pork fat.
+ @) e4 w3 g7 s! ]5 C
! p3 ?( ^" |* e" B. N1 @8 a$ s. F5 G
6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
' I# }# ?3 W/ P- r& Vexpected to be built in the future. Much of the energy they produce
3 K, e  O! C' j# z4 q; Uwill replace oil.


' p' W! @. o" o# K" f/ p; M; q7. Every company in any form of transportaion business is replacing
$ G# U- p' _3 Nolder equipment such as trucks, airplanes, train engines, ships, etc.
6 }% d; H7 q. n& ~- @with new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
equipment.

! z' d  Q4 ]& h2 e+ [, I
Airlines are flying airplanes with bio-fuel. They are finding the bio-
) T4 D6 P3 X; E) q( D2 n9 x/ P2 ffuel is cleaner and performs better than jet fuel.

3 H  a% \' W4 u" W
; w  T- q6 Q" Q1 m" {( ?8. 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
9 }" x$ X1 Q4 R2 T/ roil.

( T( y8 D2 h# {( T: _4 @
9. Coal is being transformed into a clean burning liquid fuel. The CO2
, f. u4 x9 y: t, E$ Z+ Eproduced as a byproduct is sold to oil companies for injection into
oil wells.
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7 h/ ?) e* }$ _: B  g
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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3 ?: p* L8 h1 l# M" GEach of the above by itself will not make a large difference in the
; I' ]. h, K% K- Yprice 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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2 \3 [" S; [# J# O# E6 w, k6 yWith the above scenario, I still believe that there are under
+ m# n3 l) m* i. t( U# F% rperformed OIL companies and probably they are yet to get the justified
value .....
. h/ p" Q! N3 qIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
' m5 E. |9 R$ m1 H

The above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only