Interesting article about Oil

wanghong

--------------------------------------------------------------------------------
9 }6 e" E4 b. Q  A3 ^: F1 JBelow 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
* C/ X3 {9 [7 |these oil producer will go bankrupt or out of the business even if
crude prices improves. This implies also to good names such as Shell,
6 u: k7 n2 [$ z0 |EXXON, BG, BP, Cheveron ....xyz.. oils
4 {: W8 v* k8 q# T* R, v
, L+ Z4 h: L' e% o- G* S; MRecently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
7 U  j* S6 H+ \0 @A year ago these things would have spiked the price of crude oil by at
) C1 t5 Q, X' W: D3 Y5 R/ xleast $50.00 per barrel. Today, oil price declined by a record amount.
7 F6 @; P; A' P8 o4 C2 e7 }! r$ f

There are several reasons the price of oil is decreasing in the face
8 G. ?  [: i2 o* m6 cof so much news. These reasons are:
& q. z7 ^4 ^$ [5 F4 y; ]3 ~
# ?( n: O, t! G
1. New oil has been found in Canada, Montana, North & South Dakota and
4 W) R' k0 W0 O5 i$ T' }in the ocean near Brazil. Each of these oil fields has more oil than
0 {5 w) {, C7 _5 A8 y. w- T* h/ sArabia.
6 b( x" C) ?% n3 @6 _+ E- x
; i9 ~9 b+ L7 k# S0 a
2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.
8 S# i0 L$ U7 A, ]& s: ?+ p
1 m4 e5 p8 y/ Q) Z# h
/ j5 P7 ^, C$ Y# Y3. New methods of injecting CO2 and surfactants into oil wells is
) c1 }. U# o' ^3 pbeing used to double their output.

7 C/ W6 Y$ C2 R# M3 ]3 E
9 I9 s( P6 r! ~7 n4. Production of bio-fuels is beginning to reach critical mass. Bio
  z9 |/ I& w$ U/ ffuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.
, X, |! q+ ?, K
. ?0 Z0 m" a+ |& ~- ^
5. Virtually every restaurant in the US and all food processing plants
1 c* W# k( A8 C# N5 iare now selling their used oil to bio-diesel producers. Every pork,
" [  Z' J9 ]3 c2 Mcattle, turkey and chicken processing plant will soon sell their fat
to bio-diesel producers. One pork processing plant in Oklahoma is
+ a/ _) i; F5 sproducing 30,000 gallons of bio-diesel per day from pork fat.
6 t5 `; S. S' n8 e! S2 x

6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
& b/ d" g, S* l' ^$ m9 g6 wexpected to be built in the future. Much of the energy they produce
will replace oil.
% R% H* P+ a/ I$ E2 y: O4 n

, p- G; K9 e0 _7 W/ m7. Every company in any form of transportaion business is replacing
" s6 `! s5 Q1 I/ jolder equipment such as trucks, airplanes, train engines, ships, etc.
3 V5 f' I) `# a; I6 Hwith new more fuel efficient equipment. Airlines and railway companies
" V. c1 j' v  K, }2 ~- e* zare experiencing 20% to 25% better fuel econony with the new
3 e4 Y" x) s6 d% `equipment.
' D% O9 ~% e4 k8 m
, K- s3 {$ E+ p/ s# o- o+ J( ?
: {) q  J3 F; X9 e" qAirlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.
, ~- u" l; j0 R) M3 E9 x
* j9 \/ L3 D" Z6 E- v
8. Cities and counties throughout the US are selling the rights to
8 N5 U0 Q  x+ @' Y/ G( B2 Pcapture methane gas from landfills. This is a huge source of gas
* b( O: O- c  T" B( l& Bavailable at very little cost or risk. The gas is displacing crude
# \8 f. Q$ K1 {) \oil.
9 U# c# J  b: S# m0 B" U; X

8 r3 N, z- t$ v; m! }9. Coal is being transformed into a clean burning liquid fuel. The CO2
0 C! U4 O; G; p5 {! |6 v- p4 p+ bproduced as a byproduct is sold to oil companies for injection into
6 d  r4 Y2 x9 }: W6 C% ooil wells.
( m1 a7 v* Z3 h$ F, @) P+ |

10. Solar, wind and ocean energy is displacing oil as an energy
: c' e0 }7 U/ l8 _source. 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
# w! {0 C9 U- S+ d; K7 M% Cprice of crude oil but the sum of all of them together is world
! q( ^) _5 b: Q! l2 Pchanging. The important thing is that OPEC no longer has the ability
to control oil prices.


7 @; j9 j5 [6 F" jWith the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
5 ~3 h& I  E- p0 `2 pvalue .....
+ t( ~9 c7 P& {: n) BIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
$ m- }9 b$ s# r- r9 S
0 v1 J3 s; j. O
  P. h8 \- }7 s- DThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only