Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
+ N5 V/ R. |2 l! _3 J: l% uexpect much from Crude Oil producers and future is not with the
( D3 }+ U2 @- M8 O( ucompanies producing Jet fuels but Biofuels. Also no wonder if some of
these oil producer will go bankrupt or out of the business even if
' n( t" Q. F9 {5 Acrude 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.
& W, z" w0 x, SA year ago these things would have spiked the price of crude oil by at
least $50.00 per barrel. Today, oil price declined by a record amount.
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' H: ~7 |; C* |$ GThere are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:
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3 }! z- R: D; i% |2 P( 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
" ^* g5 Y4 W* C( wArabia.

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# y( W" G, n) y' Z5 }1 I2. New natural gas has been found in Pennsylvania and West Virginia.
3 Y' t; ?/ K" \8 H  QThis is the largest find in North America.

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3. New methods of injecting CO2 and surfactants into oil wells is
8 |8 Y+ H; t% X# N, cbeing used to double their output.
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& J$ T2 \# H, ]4. Production of bio-fuels is beginning to reach critical mass. Bio
9 g, \; N2 g) Q+ G; S7 P2 g' @fuel is being produced from many plants and algae. The production
2 A2 g# d' S8 ]) @, B& ]8 F' c; bpotential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.


5. Virtually every restaurant in the US and all food processing plants
' F" W+ M  h) d+ b% ~are now selling their used oil to bio-diesel producers. Every pork,
  [3 L. \- u3 s! w: dcattle, turkey and chicken processing plant will soon sell their fat
to bio-diesel producers. One pork processing plant in Oklahoma is
0 p0 @: U1 P( z' a5 {! i, Hproducing 30,000 gallons of bio-diesel per day from pork fat.


6. There are 99 nuclear reactors in various stages of planning and
6 D: a2 g& O9 r! w$ Rconstruction around the world at this time. Several hundred more are
4 P1 N% b; u' n2 fexpected to be built in the future. Much of the energy they produce
3 U: v7 x2 r+ ~0 K) x" Zwill replace oil.


2 @7 u; D7 Y3 h" ~) h7. Every company in any form of transportaion business is replacing
older equipment such as trucks, airplanes, train engines, ships, etc.
with new more fuel efficient equipment. Airlines and railway companies
8 Q6 \" @, z, [9 `are experiencing 20% to 25% better fuel econony with the new
' D- z/ c# w; R( q3 pequipment.
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Airlines are flying airplanes with bio-fuel. They are finding the bio-
% `) p% X& `6 _: ?1 }  P! yfuel 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
% @1 ~" m2 K3 t) v6 a# p* g8 J6 Y2 zavailable at very little cost or risk. The gas is displacing crude
oil.


) V0 w) m4 M8 G& {9. Coal is being transformed into a clean burning liquid fuel. The CO2
. L/ D2 q3 K$ ~+ W1 @produced as a byproduct is sold to oil companies for injection into
$ S# X! {1 k9 _3 w( R$ Woil wells.


  l  F9 Y- X0 n8 I' y) U10. 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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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
- o0 b* q) m) p$ g/ Z* |changing. The important thing is that OPEC no longer has the ability
to control oil prices.
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With the above scenario, I still believe that there are under
4 w1 M7 f) F4 }% R9 ^, `: K* K( Mperformed OIL companies and probably they are yet to get the justified
value .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...


: L& o% B' i2 K; O3 H4 h* jThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only