Interesting article about Oil

wanghong

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0 C8 j' w1 w! {. tBelow is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
/ h. h/ H5 G4 A" i; `companies producing Jet fuels but Biofuels. Also no wonder if some of
- L: F0 u6 s+ ^7 ]( J# x: \# n0 ithese oil producer will go bankrupt or out of the business even if
crude prices improves. This implies also to good names such as Shell,
9 `2 b/ g6 `+ q, G8 {8 O! E; x% i1 TEXXON, 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
. C; d" q4 G4 ?- ileast $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
of so much news. These reasons are:

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' H* b+ P  y+ X* j- {7 s* F1. 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
; E+ x4 ^5 b, l" a' @' fArabia.
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2. New natural gas has been found in Pennsylvania and West Virginia.
9 G. O% _  \5 H: uThis is the largest find in North America.
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6 A) x3 k! w8 ]% o; T3. New methods of injecting CO2 and surfactants into oil wells is
# M, r$ b2 C6 |# x) }  R9 Kbeing used to double their output.
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* m( p4 T7 w0 [; Q- C' ^4. Production of bio-fuels is beginning to reach critical mass. Bio
; y( f) s9 ]% E, nfuel is being produced from many plants and algae. The production
4 P  R; G4 D0 F3 n" qpotential per acre in some cases is astounding. Many countries are
  A+ P! e( {) B3 ^$ Qracing to produce bio fuels.
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; E3 _% r" q- ~+ e5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
  z/ _0 b6 L3 F, q! k2 ~+ \8 Icattle, turkey and chicken processing plant will soon sell their fat
to bio-diesel producers. One pork processing plant in Oklahoma is
0 @8 G8 D. n) I" Eproducing 30,000 gallons of bio-diesel per day from pork fat.


* h0 a% U: x3 R, V6. There are 99 nuclear reactors in various stages of planning and
4 B( ]6 e0 X$ Q; Z- i' l' F- u5 }construction around the world at this time. Several hundred more are
6 z, S4 @9 W+ d+ G% O; b+ j( B: g* }expected to be built in the future. Much of the energy they produce
1 ]9 o2 z* d' y5 [( B5 uwill replace oil.
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7. Every company in any form of transportaion business is replacing
" X6 f) p& W: n" Rolder equipment such as trucks, airplanes, train engines, ships, etc.
: H$ O  o5 E- z/ Y3 L! Ewith new more fuel efficient equipment. Airlines and railway companies
' q- N: v6 J- Yare experiencing 20% to 25% better fuel econony with the new
equipment.

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; N  m1 s4 P5 d( z& i# o2 ^( XAirlines are flying airplanes with bio-fuel. They are finding the bio-
0 n) s$ l, i/ M. I& O/ ^fuel is cleaner and performs better than jet fuel.


2 U6 m$ y, v. J# u* `+ }( o8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
) W# y. v; r/ v7 Vavailable at very little cost or risk. The gas is displacing crude
0 l! p2 P" j  T- b2 A% loil.
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9. 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.

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5 J- U) ?9 g# y- P10. Solar, wind and ocean energy is displacing oil as an energy
" ~' `, j- Z; V; T7 Hsource. Three new wind turbines are being erected every day in the US.
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" [- x4 W/ g  r2 f, ^& A9 ?9 j9 PEach 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
- G" o% q+ p2 x7 ^# Xto control oil prices.

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4 G8 p7 g# y: i: ]" tWith the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
1 \) n- Z- b0 b" qvalue .....
2 @! B6 b4 g; d# ?IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...

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( K, d7 r3 H# |The above articles are from WSJ .............PUBLISHED ON 9TH JAN
& E; }$ u1 |* v% |& s6 U# R2009 ... FYI-Only