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
* s8 c. E7 f- q6 U$ C8 r$ ccompanies producing Jet fuels but Biofuels. Also no wonder if some of
these oil producer will go bankrupt or out of the business even if
/ b. A4 D) V% bcrude 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
+ V8 Z3 e. v/ M5 v4 ?* \least $50.00 per barrel. Today, oil price declined by a record amount.


* Y# W0 c- o" N1 c% l4 \There are several reasons the price of oil is decreasing in the face
of 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
/ y# c! J: Z3 V& H$ `8 R- n- dArabia.

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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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; M2 F) Z1 Z* C+ u3. New methods of injecting CO2 and surfactants into oil wells is
* Z) Z' b* S+ f) Z$ y1 wbeing used to double their output.
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4. Production of bio-fuels is beginning to reach critical mass. Bio
3 g0 V9 I# m' i7 wfuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.


- B( E' |2 i. k# f7 H5. Virtually every restaurant in the US and all food processing plants
9 Y8 w1 N" \2 Q# z* w+ `, T" }2 v- iare now selling their used oil to bio-diesel producers. Every pork,
cattle, turkey and chicken processing plant will soon sell their fat
to bio-diesel producers. One pork processing plant in Oklahoma is
. b& h( E$ s* Cproducing 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
/ u. d0 t  i5 v, x+ Zexpected to be built in the future. Much of the energy they produce
will replace oil.

% J6 r" F- J' u) r# i6 V, b
' c% U2 F1 X' v7. Every company in any form of transportaion business is replacing
  u  B8 j3 \/ u) T  n( Z" Q2 holder equipment such as trucks, airplanes, train engines, ships, etc.
$ H2 \9 k# g) o! V' hwith new more fuel efficient equipment. Airlines and railway companies
4 I* M( l. `# q0 O* J/ Qare experiencing 20% to 25% better fuel econony with the new
" k8 }+ s  B/ i+ I7 S6 Cequipment.

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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.


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
0 g8 w3 `' _( t0 q, {  g5 goil.


9. Coal is being transformed into a clean burning liquid fuel. The CO2
7 B  ]: Y) v. q) I% R2 m, ^produced as a byproduct is sold to oil companies for injection into
oil wells.
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10. 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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0 q% b' {4 `8 p) C( F# ?Each of the above by itself will not make a large difference in the
- J1 U: Y+ I  Dprice 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
/ k- N2 i' M# w% }6 E/ B8 p. V" z+ ato 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
# \2 r; c: H) L2 x2 Hvalue .....
# W8 V8 ^( E$ e9 m" I! @& EIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...

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# z& b2 F- G1 n! P8 {2 lThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only