Interesting article about Oil

wanghong

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4 ^( W" H$ `' p) JBelow is an Interesting article I found, which says that.....Do not
% Q) `) `0 E- ]& p: O$ T/ mexpect much from Crude Oil producers and future is not with the
( @$ b0 c" M9 m; n7 ]companies producing Jet fuels but Biofuels. Also no wonder if some of
) n: D. T7 n' S+ @  L/ qthese oil producer will go bankrupt or out of the business even if
, O0 s5 v. J0 N: U7 N: wcrude prices improves. This implies also to good names such as Shell,
' I* G  L5 F/ jEXXON, BG, BP, Cheveron ....xyz.. oils

* O0 ^6 P+ z0 L' c9 JRecently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
  `/ c# {9 L# q8 d$ QA 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:


- \, y" Q$ {( k5 o* K1. New oil has been found in Canada, Montana, North & South Dakota and
" L2 k. H  P6 d6 y3 y6 J& ain the ocean near Brazil. Each of these oil fields has more oil than
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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# P) ?8 R' V! D' o3. New methods of injecting CO2 and surfactants into oil wells is
! I# J! ~+ C! O8 q  bbeing used to double their output.


/ T& v" i) `6 M# |2 o5 G/ N0 a# R4. Production of bio-fuels is beginning to reach critical mass. Bio
0 Z* G  z. j# `0 gfuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
: h6 H7 v2 t8 a/ T+ r! Sracing to produce bio fuels.

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% L  y8 e4 D8 I* T1 X1 h1 P5. Virtually every restaurant in the US and all food processing plants
" ]; x6 I) z) Nare now selling their used oil to bio-diesel producers. Every pork,
. n4 R9 z$ l5 i, icattle, turkey and chicken processing plant will soon sell their fat
* g! n2 }$ i( Z+ s- Lto bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.
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6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
2 p$ K' r7 L6 dexpected to be built in the future. Much of the energy they produce
: N, P  ?0 z4 C  Iwill replace oil.

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/ v6 Z7 \% w& h: F7. Every company in any form of transportaion business is replacing
older equipment such as trucks, airplanes, train engines, ships, etc.
2 Q  x* {7 \7 l# T. N; ?with new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
" B) l1 E0 Q# |6 d5 v  V) a7 n4 uequipment.
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5 k7 r+ y: i3 B) O( vAirlines 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
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.

: _, @0 V; v" L% L; O5 i0 {
9. Coal is being transformed into a clean burning liquid fuel. The CO2
5 _  }! s& }2 e6 c* h1 `produced as a byproduct is sold to oil companies for injection into
, ]- E. y+ d1 b" `8 ?: `% u  C) Woil wells.
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10. Solar, wind and ocean energy is displacing oil as an energy
  O  ^! p4 D9 R/ N0 Y. }: j) u% Wsource. 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
* m- c  X7 d: ~# m- \" I! Nchanging. The important thing is that OPEC no longer has the ability
to control oil prices.
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2 B' X; Y, ]+ e4 v* PWith the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
value .....
0 }& O7 Q$ t. G4 G& g/ v, {5 {  iIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
+ i; k+ Z) O+ W8 \! _
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The above articles are from WSJ .............PUBLISHED ON 9TH JAN
( n+ w: H& ~, F0 D) Z2009 ... FYI-Only