Interesting article about Oil

wanghong

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) `  J3 t/ ]6 U( z1 ~& U  LBelow is an Interesting article I found, which says that.....Do not
+ l- \9 \- g3 w* {& |. }expect much from Crude Oil producers and future is not with the
& K" B+ w; R/ Q3 ?: K! ~companies producing Jet fuels but Biofuels. Also no wonder if some of
* L% r- F2 ^' g' E% }, ^7 F( athese oil producer will go bankrupt or out of the business even if
8 g( K+ K% Q4 \- K, h) W8 wcrude prices improves. This implies also to good names such as Shell,
5 H: G6 r% v2 b' i5 {! @+ tEXXON, BG, BP, Cheveron ....xyz.. oils

Recently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
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
$ c7 _4 V0 E" H0 L3 L; uof so much news. These reasons are:
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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
2 D, F/ n- m; @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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3. New methods of injecting CO2 and surfactants into oil wells is
* o. I0 k" d" @- {being used to double their output.


9 V5 o7 L& m; p- [8 v; v# `& A4. 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
* [$ v) [5 K8 L; q0 F/ P4 V) Fracing to produce bio fuels.
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- n: c; ?7 m3 J5 h9 r8 J3 f5. 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
! L! M  [7 z) S3 f9 g$ u: Aproducing 30,000 gallons of bio-diesel per day from pork fat.
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8 B1 ]& g4 t9 l4 P+ k6. There are 99 nuclear reactors in various stages of planning and
( X5 R6 a4 W; C+ j: ?, s: U7 }construction around the world at this time. Several hundred more are
expected to be built in the future. Much of the energy they produce
, u1 z) k) G. N/ l2 k. c6 Jwill replace oil.
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. G/ p* z- P4 p6 d7. Every company in any form of transportaion business is replacing
' r9 z& ]7 {7 ~3 P( A2 ]5 Lolder equipment such as trucks, airplanes, train engines, ships, etc.
with new more fuel efficient equipment. Airlines and railway companies
, L% f4 P5 j2 m8 vare experiencing 20% to 25% better fuel econony with the new
# Q0 m7 X" @, W- i5 C/ \equipment.
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8 j& Z9 n8 ~+ ]! \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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, ~2 }$ J' |$ {6 P8. 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.


4 ~+ c/ ^* ?& b9. Coal is being transformed into a clean burning liquid fuel. The CO2
! i, |1 K  f( O' }: }1 L/ [" e1 kproduced as a byproduct is sold to oil companies for injection into
6 r" X" m; {9 d$ Coil wells.

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* g! O# R8 K! ~- W6 A+ L& t$ X& A10. Solar, wind and ocean energy is displacing oil as an energy
4 u) @+ r4 b* |& `& g& W2 j( ^% Csource. Three new wind turbines are being erected every day in the US.


: j2 _0 j) P3 a5 CEach of the above by itself will not make a large difference in the
/ o0 B  V# v8 B0 ^1 G1 lprice of crude oil but the sum of all of them together is world
  Z- Z9 o$ f) v' h6 U5 E4 Uchanging. The important thing is that OPEC no longer has the ability
to control oil prices.
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With the above scenario, I still believe that there are under
- m" l5 {# M! M+ X3 R9 _8 O+ lperformed OIL companies and probably they are yet to get the justified
value .....
* F% T2 x/ \/ ?& v0 N$ gIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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' P  V4 T9 o! M  Z8 f) KThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only