Interesting article about Oil

wanghong

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8 f% b% C* ^  ?Below is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
% u1 U% R1 o: T$ v1 Y5 }* rcompanies producing Jet fuels but Biofuels. Also no wonder if some of
these oil producer will go bankrupt or out of the business even if
, q' R/ j3 q4 E5 y7 Y$ xcrude prices improves. This implies also to good names such as Shell,
: O% g+ F0 }0 A, c, V) s! pEXXON, BG, BP, Cheveron ....xyz.. oils

* F: @/ W  t* u, g6 p3 hRecently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
+ \! w4 ~: B6 N. v6 K3 X- Q$ T9 ^A 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.
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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
4 ~+ {  s1 K0 _- _0 H; jin the ocean near Brazil. Each of these oil fields has more oil than
Arabia.

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0 f3 {4 V2 j$ z2. New natural gas has been found in Pennsylvania and West Virginia.
% w6 m) S3 d% z/ J& K2 r; P& wThis is the largest find in North America.


3. New methods of injecting CO2 and surfactants into oil wells is
. H; k8 k- y5 y2 M; L( F; Z# M3 L# Dbeing used to double their output.
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4. 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
/ j: Q2 U( a' Bracing to produce bio fuels.


( U) n4 P: [: I- l+ d; z  m5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
: g9 _2 a. }; A0 B. c' Ycattle, turkey and chicken processing plant will soon sell their fat
3 ?5 [, Y" L( Vto bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.
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6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
* C9 }, ~% j% p9 ~% Q; ?expected to be built in the future. Much of the energy they produce
9 R  r5 I' [$ y* y% e7 Y2 swill replace oil.
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7. Every company in any form of transportaion business is replacing
9 C% B( |9 q1 N  u$ k& z9 H/ rolder equipment such as trucks, airplanes, train engines, ships, etc.
with new more fuel efficient equipment. Airlines and railway companies
7 D! T4 b* z0 R6 c2 {* l( yare experiencing 20% to 25% better fuel econony with the new
: y! R7 D  |  A: I# qequipment.


Airlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.
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3 n2 ]3 p6 ]" ]# o8 T. J8. Cities and counties throughout the US are selling the rights to
+ [" D  M+ {, m, V' @- s. ^capture methane gas from landfills. This is a huge source of gas
. I& ^% S* k$ e' Q+ Pavailable at very little cost or risk. The gas is displacing crude
6 Z9 X! ]# X0 R) o* X5 ^/ yoil.
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) n7 s7 p5 R- K$ C7 |9. Coal is being transformed into a clean burning liquid fuel. The CO2
5 c( g$ {: q! y* H! B) `: pproduced as a byproduct is sold to oil companies for injection into
oil wells.
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10. Solar, wind and ocean energy is displacing oil as an energy
' i. S4 I  x% u1 s2 M" j; [+ |' psource. Three new wind turbines are being erected every day in the US.

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Each of the above by itself will not make a large difference in the
! w% `2 b2 x2 L, nprice 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.
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" j1 d( f4 F6 i6 k8 _* NWith the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
value .....
+ f; i. B+ _, U$ n% D( ?% WIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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The above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only