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
3 i0 r* u4 I# w7 ]# ?8 O1 Zcompanies producing Jet fuels but Biofuels. Also no wonder if some of
these oil producer will go bankrupt or out of the business even if
; A: |" c9 K4 z* @5 I5 E& F- wcrude prices improves. This implies also to good names such as Shell,
/ x) T. F7 F; D/ m' @EXXON, BG, BP, Cheveron ....xyz.. oils

Recently OPEC reduced crude oil production twice over just a few
3 @  b! C4 C/ E7 \/ H" nmonths. 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
of so much news. These reasons are:


4 w1 o- D! S* `& R( U1. 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
0 `5 Q6 H. E. V# L" _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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; U- H- \$ z0 w9 b+ M; ]8 \3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.
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7 z, Z7 O, g) `4. 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
; B8 }+ ~3 w5 k+ h8 Aracing to produce bio fuels.


5. Virtually every restaurant in the US and all food processing plants
3 t' l1 U' O7 n7 h/ H) kare now selling their used oil to bio-diesel producers. Every pork,
cattle, turkey and chicken processing plant will soon sell their fat
: f! A/ y  n2 K1 t4 Ato bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.


* `( a8 a* G+ m5 L7 x2 d2 M6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
- T! X6 c9 f3 {' ]; n" Z3 Texpected to be built in the future. Much of the energy they produce
: M8 e3 r. Z3 a+ y" ]) L3 Fwill replace oil.
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) y( M/ I/ q& n* w/ {2 Z/ F7. Every company in any form of transportaion business is replacing
older equipment such as trucks, airplanes, train engines, ships, etc.
5 Y* T- B2 g+ J1 k9 rwith new more fuel efficient equipment. Airlines and railway companies
, Q: D8 w! j: C, R* Z% F- Bare experiencing 20% to 25% better fuel econony with the new
1 `+ H7 R9 ]/ @/ t; Tequipment.


. y" g& [' \4 O4 l, y$ Q0 i0 @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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8. Cities and counties throughout the US are selling the rights to
# d2 K6 Z& `) L8 D% ?+ \. ]capture methane gas from landfills. This is a huge source of gas
4 H- `; p1 }3 z0 Z' _+ Pavailable at very little cost or risk. The gas is displacing crude
oil.
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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
oil wells.
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10. Solar, wind and ocean energy is displacing oil as an energy
7 [6 T5 t1 k- a6 V7 L2 z$ w: [/ Lsource. 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
changing. The important thing is that OPEC no longer has the ability
# @; v0 Y+ v( h+ l# x6 c& p  uto control oil prices.
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With the above scenario, I still believe that there are under
9 ]/ h6 A, c: y- dperformed OIL companies and probably they are yet to get the justified
value .....
7 N( j3 K! t' s" w7 }IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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& i2 C7 B9 u5 `; JThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
* B& ]/ P3 g5 p1 M  l2009 ... FYI-Only