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
, p1 `& b" D: {0 w) `companies producing Jet fuels but Biofuels. Also no wonder if some of
these oil producer will go bankrupt or out of the business even if
* T. T* f  H. j" ~; H& t7 P0 |* Ycrude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils

Recently OPEC reduced crude oil production twice over just a few
+ N0 ^  L' |$ e; Bmonths. There are three wars going on in Gaza, Iraq and Afghandistan.
- K- e2 j2 {5 J( O6 q6 a; o6 XA 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.
* z5 |5 y7 @9 o9 B

There are several reasons the price of oil is decreasing in the face
/ X/ ]. u3 f) h# P3 gof so much news. These reasons are:

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7 h2 W6 u1 |& I; K+ L  M1. New oil has been found in Canada, Montana, North & South Dakota and
) h9 I8 a& g, ~) d% K( W9 sin 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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+ U# k" n+ ^# l2 R6 m3. New methods of injecting CO2 and surfactants into oil wells is
4 W0 J5 M5 s+ V* Y& hbeing used to double their output.

; A4 u8 e/ }1 `7 E
- b2 o7 Y) }& P3 I4. Production of bio-fuels is beginning to reach critical mass. Bio
fuel is being produced from many plants and algae. The production
4 s9 v8 k8 }7 i, zpotential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.
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5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
cattle, turkey and chicken processing plant will soon sell their fat
to bio-diesel producers. One pork processing plant in Oklahoma is
  J* N, n, z5 Z$ r; J: dproducing 30,000 gallons of bio-diesel per day from pork fat.
. M* d' D; e9 J$ A

  E  y3 _- c% D% M6. There are 99 nuclear reactors in various stages of planning and
& |5 t% r) j# _" Z  Zconstruction around the world at this time. Several hundred more are
expected to be built in the future. Much of the energy they produce
$ E; i6 Y- O6 [  o: Z  [4 y; L# hwill replace oil.

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6 J! g7 h: B# ?$ V7. Every company in any form of transportaion business is replacing
older equipment such as trucks, airplanes, train engines, ships, etc.
3 R; o, h( z0 F% a; Z4 R5 E0 B% ?with new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
8 F0 J  W  t! A6 W* h. Xequipment.

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Airlines are flying airplanes with bio-fuel. They are finding the bio-
& H# C' S) Y! \4 o5 s  ^3 ]fuel 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
! r9 R% h4 N' k- A. L* Savailable at very little cost or risk. The gas is displacing crude
! p# Q9 r" h& Z3 Y; T7 A8 a+ i, ^oil.
$ ?4 K6 e% I8 L/ n1 ]

) U! ]' [# \) L$ i3 m9. Coal is being transformed into a clean burning liquid fuel. The CO2
5 Z2 Z0 I: D* M* a) D7 q8 Cproduced as a byproduct is sold to oil companies for injection into
/ H% p* ?2 `' w9 k& b1 qoil wells.

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10. Solar, wind and ocean energy is displacing oil as an energy
( @, O4 @: U& x! h" ?1 U9 fsource. Three new wind turbines are being erected every day in the US.


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
changing. The important thing is that OPEC no longer has the ability
7 G( W3 w# P& G% ]  a4 rto control oil prices.


% p- k  d% z# n  u6 n& {& fWith the above scenario, I still believe that there are under
2 ]) |/ D) b( E, z$ mperformed OIL companies and probably they are yet to get the justified
value .....
! W) T* N/ ]# k' L0 dIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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& d: b% j7 Y2 g$ AThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
, k) Q( G" T$ ^' N* p4 F5 z8 V% r  h2009 ... FYI-Only