Interesting article about Oil

wanghong

--------------------------------------------------------------------------------
7 ?# C+ q1 M" y, C0 A4 R5 _/ ]Below is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
companies producing Jet fuels but Biofuels. Also no wonder if some of
) F2 N: N3 v" o8 }& _these oil producer will go bankrupt or out of the business even if
crude prices improves. This implies also to good names such as Shell,
! n- P# h7 `& B. I# }6 ?8 r* G1 M" GEXXON, BG, BP, Cheveron ....xyz.. oils
7 f5 f7 t8 |. i$ v1 S+ h
Recently OPEC reduced crude oil production twice over just a few
; V) I- A! U( S# o1 j$ nmonths. 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.
$ A* {% p# ~2 e, Q! D: n9 h3 o/ T

There are several reasons the price of oil is decreasing in the face
9 w# W; O8 D8 }* ^/ I# B  r) s$ A7 Mof so much news. These reasons are:


4 M$ {2 X' U8 V1. 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.
/ C8 x. J) ?6 v
/ h: _) }+ s; ~$ C6 I1 t1 b2 t
2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.

: e' A( {( e- E
3. New methods of injecting CO2 and surfactants into oil wells is
# C* _% P9 k- Y2 ?7 G$ T0 |" zbeing used to double their output.
  F& S* b" R: E  q" Z: c: t
8 ?) ]. a# @9 B& T4 k6 N
4. Production of bio-fuels is beginning to reach critical mass. Bio
$ t. k* c( M: T& Afuel is being produced from many plants and algae. The production
* [; F/ N1 q, cpotential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.

- V1 r# T( p2 v& N, Y( \
0 H: U  ], x+ }  c5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
cattle, turkey and chicken processing plant will soon sell their fat
# X5 I/ _% N9 Mto bio-diesel producers. One pork processing plant in Oklahoma is
' P7 x. \" U/ L2 v& \producing 30,000 gallons of bio-diesel per day from pork fat.


7 a  O5 p3 x# p( T5 V6 w6. There are 99 nuclear reactors in various stages of planning and
" d# O( x( a! `5 w  l, ?% `construction 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.
: b+ c# E. Y- `- J* s0 _9 s

7 g& S$ O: G) {! l; y* P# _7. Every company in any form of transportaion business is replacing
" J3 g' u5 k# U5 _, l3 p7 lolder equipment such as trucks, airplanes, train engines, ships, etc.
with new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
equipment.
3 o% J# V6 ?2 d  }3 S

1 c3 Y. ]/ ^- r! X+ [+ NAirlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.
, W: l- k" p! z+ X1 y, Y3 z! N

4 o7 I) a3 U/ r; [; F6 M& ~" l( I8. Cities and counties throughout the US are selling the rights to
, X1 a4 j2 K& W: Q" m' g7 I5 Rcapture methane gas from landfills. This is a huge source of gas
2 j( h  f5 F0 H' l5 Uavailable at very little cost or risk. The gas is displacing crude
oil.
: W/ ^1 M4 y, {4 V: s: E' ]
% Y4 m0 g, P, k& k
' y" a2 ?1 H0 Y# |! x) D& Z9. Coal is being transformed into a clean burning liquid fuel. The CO2
4 y3 \! s! }: J1 a7 H# `, v* Y# e2 Gproduced as a byproduct is sold to oil companies for injection into
oil wells.
* i2 d3 H- p' R' R

/ Y/ X2 M: z% h) ^6 z3 u' 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.
5 O" E; e! `! M7 P8 h

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
. K3 X( ?$ C- |% @4 X) O1 F% Xchanging. The important thing is that OPEC no longer has the ability
. @- R& L8 ~% y& s( T: F$ Yto control oil prices.
6 U5 G8 G6 c$ H& O: n0 |
/ v; ~5 n! w6 x' q& @) m# J
! G! ~% f; e1 q& p& Y. UWith the above scenario, I still believe that there are under
$ V0 W, m# |% b. qperformed OIL companies and probably they are yet to get the justified
value .....
2 X; e& g1 K8 ~6 \IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
: E' F' ]  A5 d" o/ m* z! l

; |' T- Q( K8 d& @The above articles are from WSJ .............PUBLISHED ON 9TH JAN
" x( ?) }* T8 L1 O- [+ z8 x2009 ... FYI-Only