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
& _: S; p& S. e$ u, z6 e5 q' U( zcompanies producing Jet fuels but Biofuels. Also no wonder if some of
8 |: M: U, z$ F$ f9 I3 I3 ^) r1 V2 Xthese 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 f1 C- ]4 T2 c' I# V* P9 o6 dEXXON, 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.
5 e5 F3 @6 u1 d7 b) `+ Q' I0 pA year ago these things would have spiked the price of crude oil by at
( n. v( t9 g" }: P+ d! e4 kleast $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
* q2 M- Y0 ^# h1 F7 \of so much news. These reasons are:
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1. New oil has been found in Canada, Montana, North & South Dakota and
- w% @$ r, b9 ^5 }* p5 H, ^- Nin the ocean near Brazil. Each of these oil fields has more oil than
- _# _& l4 `3 B! v$ {$ Q# uArabia.


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
1 u& N9 U. k! w+ H1 l* dbeing used to double their output.


3 B, e' V" F. t# v1 U+ q' S6 b- A4. Production of bio-fuels is beginning to reach critical mass. Bio
fuel is being produced from many plants and algae. The production
0 t/ Q* I# r( n6 O& K1 N) x: Ypotential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.
0 {9 I( s- L2 z4 U! y0 d% \( p3 I

: u) j) P* {1 ^% k5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
& }' L0 T$ \1 ycattle, turkey and chicken processing plant will soon sell their fat
to bio-diesel producers. One pork processing plant in Oklahoma is
9 C6 Z1 X  f5 A/ Uproducing 30,000 gallons of bio-diesel per day from pork fat.


6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
! {( L# P8 S/ r2 a+ \/ a# a0 h( N/ ]expected to be built in the future. Much of the energy they produce
will replace oil.

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7. Every company in any form of transportaion business is replacing
older equipment such as trucks, airplanes, train engines, ships, etc.
, ?4 X0 Z  x/ `& o: Pwith new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
equipment.
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Airlines are flying airplanes with bio-fuel. They are finding the bio-
& q1 l+ r( v; Vfuel is cleaner and performs better than jet fuel.

8 D+ o( J3 d" w' @3 \3 H
) K8 k& a+ k- E& H  v8 b8. Cities and counties throughout the US are selling the rights to
: A" _- c, T* H; x& h( Z) Ncapture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
  W. j$ j$ @* t; S( e- o8 Coil.

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) _- d# B8 u  U, K0 l' C4 h6 Q9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced 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
source. 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
price of crude oil but the sum of all of them together is world
4 k; [1 }+ H& e; I: Pchanging. The important thing is that OPEC no longer has the ability
to control oil prices.
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1 M7 E- F- |" ]( w7 Q# }With the above scenario, I still believe that there are under
" K5 z1 |: s4 C2 H8 W7 Gperformed OIL companies and probably they are yet to get the justified
5 |3 c9 P% A% n" D! ?7 cvalue .....
. k4 p# T" u7 c; fIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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) }, m) W( {) k0 C2 z5 @* D0 jThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only