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
companies producing Jet fuels but Biofuels. Also no wonder if some of
4 f& p$ B% y7 l( x; j) D' ]5 b! Hthese oil producer will go bankrupt or out of the business even if
5 H. F$ |- z! o) O5 ]crude prices improves. This implies also to good names such as Shell,
- ~# R* Q+ K, K$ H; UEXXON, BG, BP, Cheveron ....xyz.. oils
3 V* b, g2 T) g
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
  g* M' w  J( O4 L# pleast $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
# N" Y. m% Z6 C; x; z0 A% ]4 _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
2 x4 O) x9 M9 O  w7 TArabia.
' `* P" U6 u. b7 o. M6 p

2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.
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3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.

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4. Production of bio-fuels is beginning to reach critical mass. Bio
* B4 [& w8 u. Cfuel is being produced from many plants and algae. The production
0 p! N% m6 U* Z& lpotential 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
( H) ~4 s- M& a8 _: `are now selling their used oil to bio-diesel producers. Every pork,
  J" ^" c) C, a7 {) j" E- Z. lcattle, turkey and chicken processing plant will soon sell their fat
6 N4 U6 P. H$ Y! s4 M( vto bio-diesel producers. One pork processing plant in Oklahoma is
/ t+ ~: j: C0 y# P  _, u1 mproducing 30,000 gallons of bio-diesel per day from pork fat.
2 V, j8 n; P0 G# m7 [

6. There are 99 nuclear reactors in various stages of planning and
1 n9 z/ p7 `( p" l/ G6 m+ `construction around the world at this time. Several hundred more are
expected to be built in the future. Much of the energy they produce
: t% G- H9 M( `$ iwill replace oil.
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7. 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
0 h. a, A( w6 D- h4 u# Dare experiencing 20% to 25% better fuel econony with the new
% j, J5 {4 K% m/ uequipment.

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+ W" Q6 ?8 n, N! ~0 T6 z. ?Airlines are flying airplanes with bio-fuel. They are finding the bio-
' r- S, \0 b  r* `# wfuel is cleaner and performs better than jet fuel.
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* \2 l' W2 x2 {  N7 Q: @+ S8. 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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5 Q9 E4 A, e; B9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
, N, b' C$ s, y( o' b1 aoil wells.

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' D6 b. N' D5 t& ~10. Solar, wind and ocean energy is displacing oil as an energy
0 c6 g* h' `4 ]8 o" Osource. Three new wind turbines are being erected every day in the US.


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
changing. The important thing is that OPEC no longer has the ability
' Q7 L0 n$ D4 t4 t* C1 lto control oil prices.

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With the above scenario, I still believe that there are under
& M& b: A0 ]9 `) m% Rperformed OIL companies and probably they are yet to get the justified
value .....
5 a6 ^8 ]# t6 r+ k- |8 }4 w2 fIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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The above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only