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
9 E" r/ a8 S, v. P! ocompanies producing Jet fuels but Biofuels. Also no wonder if some of
' d# ^# N( a9 X3 v6 zthese oil producer will go bankrupt or out of the business even if
crude prices improves. This implies also to good names such as Shell,
2 D9 G& m+ q6 ]: N* U6 i1 X: X5 pEXXON, BG, BP, Cheveron ....xyz.. oils

Recently OPEC reduced crude oil production twice over just a few
; ^: P3 Z  m# x& lmonths. There are three wars going on in Gaza, Iraq and Afghandistan.
$ I* E2 m. _7 D5 F, }A year ago these things would have spiked the price of crude oil by at
: ~# g8 w1 N: F5 J; i7 M1 {; [- m9 Tleast $50.00 per barrel. Today, oil price declined by a record amount.
8 q0 e) p- R: Y

6 B+ P1 H% q  Y4 |* q. [There are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:


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
# H0 v- N1 e1 X+ V0 ZArabia.


7 ~# W2 V" t# \5 o2. New natural gas has been found in Pennsylvania and West Virginia.
2 @# B0 k9 S9 T5 j  U" N; x8 WThis is the largest find in North America.

8 b  j; n6 v/ o3 F7 R1 c
+ h% w$ N* j% A, J  [% A3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.

9 C5 ^: T2 Z( T. V5 t
" a; v0 Y  f; o, J1 j4. 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
! l" i% M, W, r0 [; d- p" uracing to produce bio fuels.
8 g( Z! B% B- [) r1 h

3 A0 ]! t9 m1 T& e5. Virtually every restaurant in the US and all food processing plants
: Q, N8 P  t& \7 A% r, N/ Tare now selling their used oil to bio-diesel producers. Every pork,
, @  N8 C% B, [) Q( U$ B3 c9 zcattle, turkey and chicken processing plant will soon sell their fat
to bio-diesel producers. One pork processing plant in Oklahoma is
$ g- X3 I8 ~8 Qproducing 30,000 gallons of bio-diesel per day from pork fat.

9 i$ x; l/ ^: `- W9 b' {  M
% h9 C6 H9 J% w6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
$ T: `7 F# n  Y2 a6 }& U1 Jexpected to be built in the future. Much of the energy they produce
# b7 O- o( g/ d: o! M4 @will replace oil.


' i; Q# n; Q' ^6 G7. Every company in any form of transportaion business is replacing
/ Z" `: q/ ^8 h# Y( r- Yolder equipment such as trucks, airplanes, train engines, ships, etc.
0 `6 l9 c: S- Rwith new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
equipment.
( G; Y) B# a( s. I

Airlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.

8 T$ i9 E8 C: l+ \% X: J% \$ M
1 T0 M& X  h6 G  q# X! u8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
! I1 e9 h- `1 o) \0 eavailable at very little cost or risk. The gas is displacing crude
oil.

% u- o- P( {! v0 h
: w9 ]# j2 r4 {! P9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
& S' d* G5 j# O' [oil wells.

8 c0 O' h  ?2 b2 o( o0 f
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.
8 o. @% V: A( h" @: Q& M
: M/ W3 B# y. }
. ~0 z% v0 ?; L  ~' VEach of the above by itself will not make a large difference in the
* [4 }" G0 G) [, A, L5 vprice of crude oil but the sum of all of them together is world
# I+ W) E6 b7 Q! G  c+ Uchanging. The important thing is that OPEC no longer has the ability
to control oil prices.
" T2 z$ H: \; O

With the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
value .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...

  C, E! i8 ]3 b& O4 p. M" L" _
The above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only