Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
/ f8 F0 c, t" N' g% yexpect much from Crude Oil producers and future is not with the
companies producing Jet fuels but Biofuels. Also no wonder if some of
1 i4 D. \4 j+ u; S# ]/ }8 jthese oil producer will go bankrupt or out of the business even if
crude prices improves. This implies also to good names such as Shell,
$ m4 e4 u9 A! @- QEXXON, 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.
3 d* w7 C- f! F& P- \3 ^# l; G1 }; vA 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.


2 o- @3 B: @" L  f$ a, uThere are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:


1. New oil has been found in Canada, Montana, North & South Dakota and
1 _- k" G+ l# N; `/ O; ain the ocean near Brazil. Each of these oil fields has more oil than
3 r5 r$ y& A+ W. Q2 }Arabia.


2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.
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/ \0 p5 `. G" {3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.


1 Y' f* L5 @+ u; Y  Y9 ?8 O4. Production of bio-fuels is beginning to reach critical mass. Bio
fuel is being produced from many plants and algae. The production
+ H' Z$ f; C0 t; ^/ V9 |6 npotential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.


2 B& P: ?/ c! b0 e5. Virtually every restaurant in the US and all food processing plants
1 M9 ~& [* S6 k! yare now selling their used oil to bio-diesel producers. Every pork,
; m" T* @# A7 q- m1 Bcattle, turkey and chicken processing plant will soon sell their fat
" g; M) C) j+ Ato bio-diesel producers. One pork processing plant in Oklahoma is
/ B! Y: L* `; U3 H: cproducing 30,000 gallons of bio-diesel per day from pork fat.
4 z) `" S- Z0 Q3 E
% I6 m+ @0 \/ E# w8 L$ Z& X5 v- \
6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
$ W% v' ?8 ~0 c) ]4 g) m) Xexpected to be built in the future. Much of the energy they produce
will replace oil.
" R1 T3 H! H" d9 D. G" s

( j, w$ {2 p. `/ r6 p$ G4 `7. Every company in any form of transportaion business is replacing
' Z0 R4 S) h, Eolder equipment such as trucks, airplanes, train engines, ships, etc.
3 P" ]! Q* r1 p. k, [with new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
/ Y& J5 v  g# n% v! yequipment.


Airlines are flying airplanes with bio-fuel. They are finding the bio-
4 u4 [' z' X' L! f9 s6 m6 y  Wfuel is cleaner and performs better than jet fuel.
8 I3 X9 B( E( @! W0 E) o
4 x; T  S& m2 o+ m, U9 B
8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
* h0 W" i% _. F' C" ~+ g; cavailable at very little cost or risk. The gas is displacing crude
oil.
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  B- d5 W- h, X' C# Y+ i2 `; c. {7 Q
% m- l* [. ~; o: f& M& J) ~9. Coal is being transformed into a clean burning liquid fuel. The CO2
; g9 e) b. f2 {: h  K9 [7 xproduced as a byproduct is sold to oil companies for injection into
0 o8 ]+ A9 [3 P6 H- h$ R7 \: p, Roil wells.
! ]! H% M$ ]) l5 b( @( Y8 R

1 L" B8 _) y* t10. Solar, wind and ocean energy is displacing oil as an energy
source. Three new wind turbines are being erected every day in the US.

4 n) e  }; m. t' e" k# M  G
Each of the above by itself will not make a large difference in the
7 y# q( {, X( Z1 r, Tprice of crude oil but the sum of all of them together is world
8 P7 V& y  W5 o* n! W* schanging. The important thing is that OPEC no longer has the ability
to control oil prices.
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3 e( e- j) `+ Y$ M  j- x, \" ~( o; o( QWith the above scenario, I still believe that there are under
3 V" d1 T3 l4 f% b; I9 lperformed OIL companies and probably they are yet to get the justified
& e4 j* g; q: F" Q+ K( o. X6 ?value .....
, n; k. D; X& H7 cIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
' X) e" H, J. f$ K: c7 H

# }& V7 h$ w; yThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
/ k& R' k5 n% Q2009 ... FYI-Only