Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
0 n& N# i4 F% v7 Z, jexpect much from Crude Oil producers and future is not with the
$ _# p5 s0 H9 |5 b0 X, D8 o4 E3 Bcompanies producing Jet fuels but Biofuels. Also no wonder if some of
these oil producer will go bankrupt or out of the business even if
2 I* @9 x" Y/ Bcrude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils
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( @. i8 f- s4 s  D( a6 ?( D5 NRecently OPEC reduced crude oil production twice over just a few
1 ]0 M2 h3 K0 I! I  umonths. There are three wars going on in Gaza, Iraq and Afghandistan.
0 q* ?. y# e4 DA year ago these things would have spiked the price of crude oil by at
# h5 L, U2 \' V* D( hleast $50.00 per barrel. Today, oil price declined by a record amount.

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& m; o. }; {! |; x: F) cThere are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:


7 L! A6 G) S" |% a' A: t1. New oil has been found in Canada, Montana, North & South Dakota and
0 D" b1 C. R& m/ i, |& U/ l% iin the ocean near Brazil. Each of these oil fields has more oil than
! ], ]5 y- \2 d% @/ `# m& {Arabia.
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2. New natural gas has been found in Pennsylvania and West Virginia.
8 {, V2 S+ S0 W0 z$ k6 n4 HThis is the largest find in North America.

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. O/ U" ~5 [; {3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.

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4. Production of bio-fuels is beginning to reach critical mass. Bio
3 M) W1 w. p) @6 k4 m7 F- r! m4 n* Jfuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
- h  E( v) x- K, m7 D& f2 C4 q" b+ D1 hracing to produce bio fuels.
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# o8 K% a/ [6 F9 e8 k+ g# M5. Virtually every restaurant in the US and all food processing plants
0 W$ n" |9 S0 w6 m$ ~9 Sare now selling their used oil to bio-diesel producers. Every pork,
+ U6 v- p( K" v3 g8 f$ u+ lcattle, turkey and chicken processing plant will soon sell their fat
% F; z' E' E) N8 q* Z: Pto bio-diesel producers. One pork processing plant in Oklahoma is
2 N3 D' y1 Q+ I. T! X, i1 m/ c; Kproducing 30,000 gallons of bio-diesel per day from pork fat.
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# M# ~1 b) P* {* G9 `6. There are 99 nuclear reactors in various stages of planning and
2 M; T7 _4 s0 V7 T' xconstruction around the world at this time. Several hundred more are
expected 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.
: S, X& Z3 }4 {$ ~; W8 |5 Iwith 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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0 ^+ X% h! J1 ?8 ?: gAirlines 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
4 `! A' {  u/ X: |% Aavailable at very little cost or risk. The gas is displacing crude
oil.
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5 C2 C) [. X* F$ V) ~% p; M7 U4 }" i9. Coal is being transformed into a clean burning liquid fuel. The CO2
- d6 m3 [7 q- |6 b' k) S) aproduced as a byproduct is sold to oil companies for injection into
; b; F+ q" }7 \oil wells.

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10. Solar, wind and ocean energy is displacing oil as an energy
* v6 A' E/ z% L1 T6 |$ nsource. Three new wind turbines are being erected every day in the US.

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' W6 n1 t/ v" 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
1 v9 E/ {+ w, g$ Ichanging. The important thing is that OPEC no longer has the ability
4 b# p% M& w7 |/ A) mto control oil prices.
5 o4 z8 ^1 T$ r& S9 A; S" i4 }

With the above scenario, I still believe that there are under
0 d0 v' m5 k1 c: F! s* @6 X6 Vperformed OIL companies and probably they are yet to get the justified
value .....
" K& n. W, n1 X2 x: ^IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...


The above articles are from WSJ .............PUBLISHED ON 9TH JAN
3 a9 {, k+ g. e/ p# o" F2009 ... FYI-Only