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
* V# n! S, Q( N4 s' tcompanies producing Jet fuels but Biofuels. Also no wonder if some of
: m7 S! N9 @$ Y5 B( s. ^( fthese oil producer will go bankrupt or out of the business even if
! U4 B1 d, b7 D9 b! v7 Ucrude prices improves. This implies also to good names such as Shell,
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.
A 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.


# g2 F3 g; N/ _0 P1 ZThere are several reasons the price of oil is decreasing in the face
, j2 F, D/ K: h5 n8 rof so much news. These reasons are:

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1. 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
Arabia.


; P% C8 D2 L8 Y# Q2. New natural gas has been found in Pennsylvania and West Virginia.
2 X) l+ H; U" @% E0 Y# vThis is the largest find in North America.
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. Z/ }" s4 y& Z6 b# j3. New methods of injecting CO2 and surfactants into oil wells is
! c2 E) b1 C4 z. O: D" n2 _6 lbeing used to double their output.
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4 c# a, D+ X: i+ Z2 Q2 l+ v+ D% A4. Production of bio-fuels is beginning to reach critical mass. Bio
1 S. }! q) h- r1 o8 Efuel is being produced from many plants and algae. The production
" X" j' g1 w. M7 k$ o/ c% s' G9 apotential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.

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5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
0 a. f2 m: f* ~& a1 }" S6 Jcattle, turkey and chicken processing plant will soon sell their fat
- M; ^5 |0 m; w$ W/ \0 {; _7 s8 Ito bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.


6. There are 99 nuclear reactors in various stages of planning and
. R  v# p, ?! p' oconstruction around the world at this time. Several hundred more are
% a! w$ B. k: u7 |  N' `expected to be built in the future. Much of the energy they produce
/ b/ s3 R1 N" A% h  `4 ?/ ~3 Hwill replace oil.
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7. Every company in any form of transportaion business is replacing
/ P7 ?! k9 v9 u6 L. |! _$ volder equipment such as trucks, airplanes, train engines, ships, etc.
with new more fuel efficient equipment. Airlines and railway companies
/ O8 U; O# Y7 P9 \1 Bare experiencing 20% to 25% better fuel econony with the new
equipment.

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. c1 h8 p2 V% z, NAirlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.
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' N3 R% E2 ^. Z1 K: @8 x7 e  W6 Z8. 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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3 f# {0 U6 M/ Q4 B6 M9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
oil wells.


8 T) Z+ ]+ O6 e5 w3 g# Q7 {  ^; v10. Solar, wind and ocean energy is displacing oil as an energy
source. Three new wind turbines are being erected every day in the US.

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. v& Y3 {2 r3 k. lEach 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
  _( @4 c! `# T8 r5 a5 x  N7 P9 Fto control oil prices.

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With the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
9 n2 o# ]) [2 {7 w6 }value .....
8 T1 ?3 F8 M8 o) s9 O4 D7 {* uIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...

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( u6 w( o) g( R$ L' @3 C! _. dThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only