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
) \7 K) T6 C. z, b1 ?/ Hcompanies producing Jet fuels but Biofuels. Also no wonder if some of
2 O" ^, w$ U6 Y5 [% k/ O2 Tthese oil producer will go bankrupt or out of the business even if
crude prices improves. This implies also to good names such as Shell,
: `8 f; S6 b: q0 [* U  YEXXON, 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.
, V, t7 N# v4 U! Q$ xA year ago these things would have spiked the price of crude oil by at
least $50.00 per barrel. Today, oil price declined by a record amount.
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  ?- A& d5 m1 L! \% T) \There are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:
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3 D4 f! `$ C% {5 j1. 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
% o  a& V3 |# E' X1 qArabia.

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+ E- `) M* b3 V. }% a7 _& I, F2. New natural gas has been found in Pennsylvania and West Virginia.
( ^9 @# q+ P) y: Y, G# Q' qThis is the largest find in North America.
5 t( E3 U. y3 ^' E. _9 C

3. New methods of injecting CO2 and surfactants into oil wells is
' J$ O/ |0 f; f3 Mbeing used to double their output.
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4. Production of bio-fuels is beginning to reach critical mass. Bio
fuel is being produced from many plants and algae. The production
. x2 Y4 B' `- h9 o$ A. [+ ppotential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.
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( [" Q. S- s" a# Y8 J, C# s( H5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
" w; W1 S( e% T0 C; T% Icattle, turkey and chicken processing plant will soon sell their fat
% o& o, ?* s' x: b* T+ P4 B5 ^to bio-diesel producers. One pork processing plant in Oklahoma is
* z$ `/ M( s  [producing 30,000 gallons of bio-diesel per day from pork fat.
% T0 L# \. G9 H, _' \6 W  ]

6. There are 99 nuclear reactors in various stages of planning and
6 M- c% j* M' h' S$ B5 O! Z" d+ Vconstruction around the world at this time. Several hundred more are
0 ~+ r0 `" [( O4 M8 ]expected to be built in the future. Much of the energy they produce
+ M( o2 v6 l7 T) p4 M$ vwill replace oil.
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& s' w& g1 `; m/ N& `8 T7. Every company in any form of transportaion business is replacing
older equipment such as trucks, airplanes, train engines, ships, etc.
: S& l8 e% S% X/ K6 Y) Twith 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-
6 g# d6 l5 }" Gfuel is cleaner and performs better than jet fuel.
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8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
# t& D% j5 t2 Q& v6 E0 t1 navailable 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
' E  a8 {4 U1 s+ m$ f' e8 c( \oil wells.
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10. Solar, wind and ocean energy is displacing oil as an energy
$ }) @6 L" d% u+ J! Isource. 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
$ T$ f( c# b! g# A$ H) qchanging. The important thing is that OPEC no longer has the ability
! n& }$ l$ h) F. tto control oil prices.
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With the above scenario, I still believe that there are under
: |/ t1 K3 `/ U& aperformed OIL companies and probably they are yet to get the justified
value .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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( K9 b" `$ w- w  d# `1 CThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
9 V! Z! {/ e4 G2009 ... FYI-Only