Interesting article about Oil

wanghong

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4 t3 u- o6 P% u- GBelow is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
. v/ |8 y# m9 c% ?3 {! ecompanies producing Jet fuels but Biofuels. Also no wonder if some of
these oil producer will go bankrupt or out of the business even if
! ]# {* f4 D8 e; zcrude prices improves. This implies also to good names such as Shell,
! V( Q& W- E' Y6 P+ g& U1 ]# HEXXON, 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.
. o" C- z% l2 D2 x' u" E- {# r& KA year ago these things would have spiked the price of crude oil by at
. o3 a- g7 U  h3 ~2 dleast $50.00 per barrel. Today, oil price declined by a record amount.
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There are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:
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9 w& }1 U8 n/ }* \1. New oil has been found in Canada, Montana, North & South Dakota and
3 I# f. K' L( j! `/ ^in the ocean near Brazil. Each of these oil fields has more oil than
; t( c* r$ i# t) `Arabia.
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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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9 Y* \" O/ t* C& Q5 {3. New methods of injecting CO2 and surfactants into oil wells is
# ~" U% p2 X( _* N& abeing used to double their output.
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2 a5 N, h7 b  m4 n( O! p- j) k4. Production of bio-fuels is beginning to reach critical mass. Bio
  s0 ~' `& b0 `" ^& v* yfuel is being produced from many plants and algae. The production
6 M1 K( m" H, D+ k! Z1 D! opotential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.

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  }0 b4 J2 D+ s7 |5. Virtually every restaurant in the US and all food processing plants
9 X# W5 I( W- z$ z# a0 F- g+ E4 Mare 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
4 s' X% e2 t+ t3 n1 Mproducing 30,000 gallons of bio-diesel per day from pork fat.
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& Q' T+ W  J$ F. D1 _. W6. There are 99 nuclear reactors in various stages of planning and
( Z+ L/ E& f: y" u0 F% T5 l) B1 econstruction around the world at this time. Several hundred more are
2 s- Z9 I( l2 \8 Q5 x* S9 bexpected to be built in the future. Much of the energy they produce
$ S0 ?) s5 Y5 C4 k4 i; fwill replace oil.
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2 c: l6 n! {, c/ ?# M- Y9 M7. Every company in any form of transportaion business is replacing
5 I/ }3 a; Z4 w3 T4 s6 _older equipment such as trucks, airplanes, train engines, ships, etc.
+ Q3 T/ m3 {( l! s8 H; K9 Vwith new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
equipment.


: s2 `- D/ j7 X0 dAirlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.


; i8 G5 {3 t3 ?# x7 t& |: ]6 G' f8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
, J  h8 {7 q' R+ s2 S/ ~available at very little cost or risk. The gas is displacing crude
oil.
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$ U! G$ m5 V$ v# q9. Coal is being transformed into a clean burning liquid fuel. The CO2
1 I  z5 @, m6 {* i* x( c( Sproduced as a byproduct is sold to oil companies for injection into
: ^! [; J- ~& d& p5 E# [0 Q  G+ K% Ioil wells.
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  q- s2 W, J. [2 X10. 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
, [5 {* U* e) D5 dprice of crude oil but the sum of all of them together is world
5 Y( V9 I8 i( N1 Z& }  Vchanging. The important thing is that OPEC no longer has the ability
! |! G3 z" q& X  Y! kto control oil prices.
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With the above scenario, I still believe that there are under
& m5 P/ u) B& O& F1 uperformed OIL companies and probably they are yet to get the justified
/ z, V5 R0 r- M7 ?value .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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The above articles are from WSJ .............PUBLISHED ON 9TH JAN
# u: o( c  B. O; B' r7 [2009 ... FYI-Only