Interesting article about Oil

wanghong

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( K& R4 P1 s, `6 ^6 q: q3 p! LBelow 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
1 {* {- p8 @' I; zthese oil producer will go bankrupt or out of the business even if
3 f+ Y+ M7 k3 Z$ L( E4 U# E4 V# Lcrude prices improves. This implies also to good names such as Shell,
. U3 G8 b: {& }$ u# REXXON, BG, BP, Cheveron ....xyz.. oils

' q, y  [- @. W; Q0 k& Q# _; [Recently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
2 C; z% h. O$ |, {8 S9 cA year ago these things would have spiked the price of crude oil by at
least $50.00 per barrel. Today, oil price declined by a record amount.
5 k: e( M# j$ d8 f

There are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:
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1. New oil has been found in Canada, Montana, North & South Dakota and
$ P5 J' T" l3 Nin the ocean near Brazil. Each of these oil fields has more oil than
5 l4 z* O0 z4 D7 O1 H4 zArabia.
; ]6 @: [. {8 n7 e2 {+ ?: }
& p1 P' L3 Z/ @  K
0 M# m- b! ]1 S# g! C6 G9 J. N0 ^2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.
# C6 ?' _; n8 K" y: j4 J  h

3. New methods of injecting CO2 and surfactants into oil wells is
' \4 o) t- ?  M. r+ O1 Xbeing used to double their output.
  ]: H" r8 A; L8 J' d4 p
4 p: o& e1 c" u' g
7 `# b, K; ^* v- Z! I0 m0 b+ z4. Production of bio-fuels is beginning to reach critical mass. Bio
fuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
1 C! s, r. @: Y* Z9 `' m  Zracing to produce bio fuels.

$ ?- F$ p: {, L+ X2 h
5 u; s& W8 ~! S+ i+ H8 S5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
+ ^: o' d9 k' ]+ p! p% i2 l6 ]& b6 Ocattle, turkey and chicken processing plant will soon sell their fat
to bio-diesel producers. One pork processing plant in Oklahoma is
/ _$ {# e: F2 o* T. S% P( _producing 30,000 gallons of bio-diesel per day from pork fat.

- ?; f# `4 v( \# a/ R' d
, F; q' G$ ]5 [% D6 p  t* _6 p6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
2 {+ [7 P4 ^* M6 J/ s, c- o! B: E# b" Rexpected to be built in the future. Much of the energy they produce
will replace oil.

7 A( U' f3 I% [
* n7 H! u0 g$ P! _9 v5 `, K+ ^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
* p& g$ l6 |0 w) t2 E7 n' ?are experiencing 20% to 25% better fuel econony with the new
: ]% b. q  S* M& O  U" S0 O' Qequipment.
0 _# {( Q8 [/ d3 Z

" R& |9 k7 E+ \8 ?9 rAirlines are flying airplanes with bio-fuel. They are finding the bio-
) y# g9 k+ q9 `0 U) F5 Efuel is cleaner and performs better than jet fuel.

2 \" Z6 b  B4 K
8. Cities and counties throughout the US are selling the rights to
# B6 s6 z4 m/ M1 v4 I  Wcapture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
5 v% l0 [% a& {/ K1 foil.

5 ?' O% ]7 Z8 m3 K6 [0 T3 r/ P
. L! S9 _3 c' V8 G2 H( \/ n8 s9. 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.
/ q! ?7 q: h2 B6 S5 {% {
( ]8 S" n  j0 l, t) }
& y" Y% Y* J; S* [4 e0 S- c9 ^) S% R10. Solar, wind and ocean energy is displacing oil as an energy
source. Three new wind turbines are being erected every day in the US.
# x9 a  w' K/ `* W9 i/ f

Each of the above by itself will not make a large difference in the
4 d  g) e6 l' s; ^8 j8 Oprice 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.


& w' E( a& q' i! sWith the above scenario, I still believe that there are under
% `$ ?& I9 n4 x  vperformed OIL companies and probably they are yet to get the justified
. D! t1 V+ A, u7 ?) k9 V7 b) T. Uvalue .....
9 Y8 Z' J. d$ G- P; O# I: e% FIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...


* R, r8 M4 K- ^1 yThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
; |" H+ X' D/ K3 j2009 ... FYI-Only