Interesting article about Oil

wanghong

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; {6 ]. y  \+ i  F, q0 @! |Below is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
6 b! N9 n% r2 b; W5 X- g  a& ecompanies producing Jet fuels but Biofuels. Also no wonder if some of
' ^% L% x4 [. P2 b1 Wthese oil producer will go bankrupt or out of the business even if
crude prices improves. This implies also to good names such as Shell,
3 h4 {) E6 E% C* |' KEXXON, BG, BP, Cheveron ....xyz.. oils

Recently OPEC reduced crude oil production twice over just a few
2 f( ]# m! P$ pmonths. There are three wars going on in Gaza, Iraq and Afghandistan.
; \& y# z$ G" I  ^- n8 N; zA year ago these things would have spiked the price of crude oil by at
/ e  d7 N. K% m5 b2 \2 G5 n# Dleast $50.00 per barrel. Today, oil price declined by a record amount.
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There are several reasons the price of oil is decreasing in the face
: p3 a0 F% @5 y8 ]- Fof so much news. These reasons are:
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' s6 {3 I4 m% s. Y- \  ^" W' A1. New oil has been found in Canada, Montana, North & South Dakota and
% _$ `* z* j# F  }* bin the ocean near Brazil. Each of these oil fields has more oil than
# e9 C! }! r/ ~" I7 F6 f) X" ZArabia.


2. New natural gas has been found in Pennsylvania and West Virginia.
3 W$ r8 `% _, N, ]& b' ]- Z# b* LThis is the largest find in North America.
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3 e% i: ~( ]. _/ M6 J3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.

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* [- @& n3 D: p' r+ y4. Production of bio-fuels is beginning to reach critical mass. Bio
5 ]. C" x. w% C5 [) C: ^fuel is being produced from many plants and algae. The production
6 K6 T) X/ z8 f2 y& }% Xpotential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.
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4 X/ h& q: _9 u6 C' N8 _* w% b9 U; I5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
2 \7 ^6 r# t! W9 Q8 a( g+ ?cattle, turkey and chicken processing plant will soon sell their fat
1 u0 d4 c! m/ ]" J1 ^. q9 Z9 Oto 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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: D& q7 r7 u# }. V" b; V" ^1 f9 P6. There are 99 nuclear reactors in various stages of planning and
8 e) a, z" z' I% F+ b8 Dconstruction around the world at this time. Several hundred more are
# F. b6 }3 A; G5 Q( N9 w  @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
" L, W' i4 F' `, s' `older equipment such as trucks, airplanes, train engines, ships, etc.
5 ?2 J/ {" S! v. Lwith new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
. v) ^) C5 w( q$ {5 S' [! r, |equipment.
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! _' H, j- m! w4 g; [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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: l! c% }* i6 Z. y& V# k1 Q* ?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
1 N0 C4 y# |9 F7 ^& Yoil.

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: ^) G, ~0 P5 f0 c- s, N, o4 M: p9. Coal is being transformed into a clean burning liquid fuel. The CO2
9 L- @' T4 M* q3 vproduced as a byproduct is sold to oil companies for injection into
oil wells.
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' d* V, v6 S9 X, ?- a9 @6 `10. Solar, wind and ocean energy is displacing oil as an energy
6 ?: Q9 q7 b9 dsource. Three new wind turbines are being erected every day in the US.


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
7 U( q. M' h" W7 Z$ Y; Hchanging. The important thing is that OPEC no longer has the ability
" n$ |0 D& T* Xto control oil prices.
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9 \* X+ t1 A5 M& \6 T0 A' l1 v7 ^With the above scenario, I still believe that there are under
2 o2 k9 @9 S& _performed OIL companies and probably they are yet to get the justified
value .....
$ a' \0 s( m# J# `+ Z2 g( D8 o  DIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...

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* c1 Q3 n( m3 t9 [* tThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
6 F& c, s* N& T- y2009 ... FYI-Only