Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
/ j( @, Q7 ?7 m2 yexpect much from Crude Oil producers and future is not with the
companies producing Jet fuels but Biofuels. Also no wonder if some of
/ B* O6 H8 b. `; m! |these oil producer will go bankrupt or out of the business even if
# {1 ^. {' h$ s' n: j# v+ \/ jcrude prices improves. This implies also to good names such as Shell,
2 W6 y6 F+ x& L& j) XEXXON, BG, BP, Cheveron ....xyz.. oils
: Y& T. F; R" E
$ l. v* r$ ?3 Q3 \8 FRecently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
* ?8 T/ b! B" t( l8 g- U( P2 nA 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.
, W* E4 q0 C7 s' K% W2 l9 K

There are several reasons the price of oil is decreasing in the face
2 _& u1 Z) _/ g" C" C4 ]of so much news. These reasons are:
7 A4 ^0 I% h7 L7 s

# F. i9 l, L/ `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
0 M7 X9 l- i' a$ d0 dArabia.
1 ]. u/ V7 K: a1 _2 b; q6 F

2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.


- F" O: o& }* u) r. a' K, B1 z3. New methods of injecting CO2 and surfactants into oil wells is
8 W8 O6 K1 l3 V: Sbeing used to double their output.

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4. Production of bio-fuels is beginning to reach critical mass. Bio
+ C5 [" S9 r2 r& j3 k3 L9 e- Rfuel is being produced from many plants and algae. The production
% z8 Q2 M" K: [potential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.

; p2 N+ `* V1 K7 X3 K! g
# `0 |# ]3 A+ O1 l9 @# i5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
' \. v/ R5 p  f) Ccattle, turkey and chicken processing plant will soon sell their fat
& D  ^0 t, D  q# L+ gto bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.


6. There are 99 nuclear reactors in various stages of planning and
: c, s/ W) l. U+ ?) U+ F% Y4 bconstruction around the world at this time. Several hundred more are
expected to be built in the future. Much of the energy they produce
: s! k6 v8 s6 A1 x) \2 `9 qwill replace oil.

4 _4 C. v% X! T) |" c( T! `& f7 u3 i
7. Every company in any form of transportaion business is replacing
* y& [8 v, {, i4 P4 y9 jolder equipment such as trucks, airplanes, train engines, ships, etc.
% `$ x  ^4 q# `: {8 Ewith new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
equipment.
% A2 Z& u9 \. w

Airlines are flying airplanes with bio-fuel. They are finding the bio-
% V& z& r( v# }0 C4 M6 s; p0 Ofuel is cleaner and performs better than jet fuel.
! y5 l" G  J2 F8 a5 X$ p

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
oil.
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9. Coal is being transformed into a clean burning liquid fuel. The CO2
4 B! b% ], M% D8 W3 fproduced as a byproduct is sold to oil companies for injection into
oil wells.
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8 I* M2 a% U2 z7 J6 E10. Solar, wind and ocean energy is displacing oil as an energy
source. Three new wind turbines are being erected every day in the US.


* i  J  f9 U* {' E) n( o9 n: mEach 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
3 _7 n" C; j9 L; K6 V" J2 ?9 Bchanging. The important thing is that OPEC no longer has the ability
to control oil prices.
6 r. \, J# b0 H8 y- j

With the above scenario, I still believe that there are under
; S* h% K6 y7 @0 ?9 B- O; _. Kperformed OIL companies and probably they are yet to get the justified
" A4 Y1 L9 D. a/ [3 A$ R6 c. svalue .....
3 i, f. z8 i- x( r1 K  m$ h4 ~IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...

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! k( Q' ]+ O6 ^  j. SThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only