Interesting article about Oil

wanghong

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( u3 c2 [3 j; Q! d2 h" m  MBelow is an Interesting article I found, which says that.....Do not
  w4 F' w  n( f7 m6 p& M2 Eexpect much from Crude Oil producers and future is not with the
companies producing Jet fuels but Biofuels. Also no wonder if some of
, O) G  b- e5 \9 gthese oil producer will go bankrupt or out of the business even if
5 c2 n: y" u3 r. l9 t& Vcrude prices improves. This implies also to good names such as Shell,
% z' |% }* \- q4 x* }EXXON, BG, BP, Cheveron ....xyz.. oils
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Recently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
2 j- g3 s! q  W3 sA 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:
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3 C" q5 V( B. ?/ R+ l& n9 X1. New oil has been found in Canada, Montana, North & South Dakota and
: `6 q. K% }1 Z, d, @in the ocean near Brazil. Each of these oil fields has more oil than
3 d) w5 l! j8 m6 t3 C6 M$ j& QArabia.

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7 a# X/ r! L* \6 x+ `+ s2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.
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3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.
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4 g  |# f& a1 \0 }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
. ?: p) z0 d; ^# h2 ^4 m/ ~racing to produce bio fuels.

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. `: N- Y! s8 T! ~* l5. Virtually every restaurant in the US and all food processing plants
7 M8 Q2 T" @* G6 _8 P/ @are now selling their used oil to bio-diesel producers. Every pork,
cattle, turkey and chicken processing plant will soon sell their fat
2 k! x3 E' ^# l$ L! Jto bio-diesel producers. One pork processing plant in Oklahoma is
) f- M+ N& Q1 p8 ~4 oproducing 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
. |6 s+ `2 y3 N6 n* I) F: [! I3 bconstruction around the world at this time. Several hundred more are
, ]5 l$ d6 g2 p0 qexpected to be built in the future. Much of the energy they produce
will replace oil.
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7. 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
: I9 M) ~, Y$ Y& tare experiencing 20% to 25% better fuel econony with the new
5 `5 \4 W8 G% P( N. e% Requipment.
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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
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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4 E: m9 Q, L  L& e  A' z6 @7 O% D9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
: K0 U, ^+ k% X; k9 S* F( K# Q3 Zoil wells.
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$ c1 G3 G6 ?! r10. Solar, wind and ocean energy is displacing oil as an energy
% y0 k+ _( s) a9 ksource. Three new wind turbines are being erected every day in the US.
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# z6 X; h8 {" D8 I7 w1 o+ HEach 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
& c" e1 [$ v" f* L$ x2 {to control oil prices.
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1 g: X) J8 N, d+ m8 H4 gWith the above scenario, I still believe that there are under
7 K) {$ M7 }- `) ~+ @3 E, mperformed OIL companies and probably they are yet to get the justified
value .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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The above articles are from WSJ .............PUBLISHED ON 9TH JAN
  W" w% O4 t+ w2 g2009 ... FYI-Only