Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
$ ^" [) h0 b6 |, B) hexpect much from Crude Oil producers and future is not with the
companies producing Jet fuels but Biofuels. Also no wonder if some of
0 H) a( }' c. N3 @2 Ythese oil producer will go bankrupt or out of the business even if
crude prices improves. This implies also to good names such as Shell,
4 r) S* g# ^  j) [. N+ ?EXXON, BG, BP, Cheveron ....xyz.. oils

Recently OPEC reduced crude oil production twice over just a few
+ W# ^0 K$ Z! mmonths. There are three wars going on in Gaza, Iraq and Afghandistan.
; l; m" E1 T  h/ X5 wA year ago these things would have spiked the price of crude oil by at
1 Z) X/ J- T5 v5 d* p% Lleast $50.00 per barrel. Today, oil price declined by a record amount.


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
in the ocean near Brazil. Each of these oil fields has more oil than
7 ?- s/ V2 ]/ ]Arabia.


( r# Q( j2 \( X3 S  R  e2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.
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+ r* j/ u! {7 J. v3. New methods of injecting CO2 and surfactants into oil wells is
) x1 @# Q, s! [$ _being used to double their output.
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4. Production of bio-fuels is beginning to reach critical mass. Bio
: r& x( D, [4 ~9 R) b4 u: G0 A+ ofuel is being produced from many plants and algae. The production
0 x3 J4 e, G1 R/ ~6 npotential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.


4 M/ ?7 G1 F& ~. @2 w5. Virtually every restaurant in the US and all food processing plants
+ |( F: `, u+ s, W6 y( b9 A& G: N" uare now selling their used oil to bio-diesel producers. Every pork,
+ |: }0 l; l4 U9 l6 Wcattle, turkey and chicken processing plant will soon sell their fat
to bio-diesel producers. One pork processing plant in Oklahoma is
( d1 A6 X! c8 @1 K. d2 {4 F6 ?producing 30,000 gallons of bio-diesel per day from pork fat.

4 i- r" G# A. f  b' w
7 ]% @3 w0 w5 T8 S# Z% g6 m6. There are 99 nuclear reactors in various stages of planning and
4 G! ?$ g: L! U+ {/ Xconstruction around the world at this time. Several hundred more are
expected to be built in the future. Much of the energy they produce
' D' R3 f. ?0 u% K3 Iwill replace oil.

0 @$ Y4 H- E9 ]  \
* t; x& s' c( h7. Every company in any form of transportaion business is replacing
older equipment such as trucks, airplanes, train engines, ships, etc.
with new more fuel efficient equipment. Airlines and railway companies
6 ~4 D2 `% ]  J4 g$ f8 t! C. tare 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-
8 Z. ]. O* u- ~' S9 T0 xfuel is cleaner and performs better than jet fuel.


8. Cities and counties throughout the US are selling the rights to
1 I* ?; I8 T- ^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.
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* `% X- E+ j+ _
9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
; y+ p4 A) k/ i) E8 E0 eoil wells.

6 q+ [' f% k) n  z8 l9 F
  o& |" h6 F& U, l; w- a6 e1 E10. 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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9 Z; \2 R8 b. ZEach of the above by itself will not make a large difference in the
+ ^- r% t9 ~, f8 Mprice 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
: y  c  x- u  X4 x8 H, `to control oil prices.
  m3 ]( q" {/ O  f

With the above scenario, I still believe that there are under
  L8 m$ p3 F( Bperformed OIL companies and probably they are yet to get the justified
& h; r7 G; g+ D0 m! F! _8 lvalue .....
" l! C$ E* m# Y# QIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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  ^7 E( M% T% S) e! X! YThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
) D" c2 N3 Q! m! c2009 ... FYI-Only