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
companies producing Jet fuels but Biofuels. Also no wonder if some of
9 y$ [( }, D* }* X1 t' D+ bthese oil producer will go bankrupt or out of the business even if
, w4 ]* M6 F  }0 J# {crude prices improves. This implies also to good names such as Shell,
2 V5 _9 k% f1 w* s4 q3 V* w, m: k/ 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.
A year ago these things would have spiked the price of crude oil by at
. @" Q8 ~% Z( m5 x. s8 nleast $50.00 per barrel. Today, oil price declined by a record amount.
  F. M9 n  \$ C% B/ Z
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% o: B4 o1 {  O2 dThere are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:
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' b' T+ }1 n7 P. \# Q1. New oil has been found in Canada, Montana, North & South Dakota and
9 A( y- H# g2 i; _+ Cin the ocean near Brazil. Each of these oil fields has more oil than
Arabia.
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$ s' \  c8 T9 n  [3 R2. New natural gas has been found in Pennsylvania and West Virginia.
; V( ~$ ]" f; D& oThis is the largest find in North America.

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3. New methods of injecting CO2 and surfactants into oil wells is
" {9 ?; e: W9 F2 e8 Z* C( S# ^! |being used to double their output.

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4. Production of bio-fuels is beginning to reach critical mass. Bio
+ b1 B% T) t8 j, N) l  l; I. ~4 Kfuel is being produced from many plants and algae. The production
) ?  ~" O* s! D6 }& Apotential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.
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5. Virtually every restaurant in the US and all food processing plants
3 E; }7 }8 q" k+ J1 G9 v, @% Hare 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
' ?% x: V( n- f, Hproducing 30,000 gallons of bio-diesel per day from pork fat.


6. There are 99 nuclear reactors in various stages of planning and
4 [( E( r1 O, O: v0 F* }construction around the world at this time. Several hundred more are
, f6 T/ L% w: J  U- [expected to be built in the future. Much of the energy they produce
# R0 _( B1 M2 dwill replace oil.
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& _- o- r  Z$ S3 ]+ H( y* \7. Every company in any form of transportaion business is replacing
0 U. |8 V# ]* @; q$ molder equipment such as trucks, airplanes, train engines, ships, etc.
with new more fuel efficient equipment. Airlines and railway companies
7 |7 ~: v" [0 lare experiencing 20% to 25% better fuel econony with the new
equipment.
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9 {) n8 r- n' F6 }2 M( yAirlines are flying airplanes with bio-fuel. They are finding the bio-
: T! }. E2 _6 ^fuel is cleaner and performs better than jet fuel.
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8. Cities and counties throughout the US are selling the rights to
; l; F: g- k* z. w" t0 }capture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
+ S9 a$ ^* U: G/ P7 K# M& _+ ^- Roil.
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# O5 F) B5 ^( `1 Z  b9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
0 n) X5 E" D% N- K7 v5 h7 }oil wells.
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! g: v7 S, l  u" S7 ~( F10. 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
' H! _. ~  Y/ rprice of crude oil but the sum of all of them together is world
2 o3 _7 }8 y6 xchanging. The important thing is that OPEC no longer has the ability
: ?" ~; B$ J. K$ b( T3 fto control oil prices.


7 Q" g  m5 T" I- K% \) x3 G3 K  J% IWith the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
( ?* X5 l# {& v% kvalue .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...


The above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only