Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
+ y8 `6 i7 |6 Iexpect much from Crude Oil producers and future is not with the
companies producing Jet fuels but Biofuels. Also no wonder if some of
0 @; D, K) t/ b0 w% v7 ?+ fthese oil producer will go bankrupt or out of the business even if
/ c6 b2 }+ S* p6 _* X1 Q" [7 M, pcrude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils

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
least $50.00 per barrel. Today, oil price declined by a record amount.


# A( x8 A9 o) w* b$ b3 YThere are several reasons the price of oil is decreasing in the face
4 A5 v! ^  f0 H" d" q2 r5 d3 Jof so much news. These reasons are:
: v8 c' n* B) V1 Y5 t+ m+ q
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- w) Q7 P* |& S  M1. 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.

' a( M% ?1 l" \/ c/ I
. i9 B1 c4 g9 v9 F- W3 U2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.
  F2 i8 ]+ ^0 J5 \1 X% G9 k. ^+ y
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, V1 f' X  |% Q- i3 H  @0 }3. New methods of injecting CO2 and surfactants into oil wells is
4 I) b1 k+ k& L! A& sbeing used to double their output.


) ~- q! t4 _' L% A8 j: L! ^4. Production of bio-fuels is beginning to reach critical mass. Bio
fuel is being produced from many plants and algae. The production
$ a- O5 J; c3 E7 t1 z6 Npotential per acre in some cases is astounding. Many countries are
7 h( F5 G! _) Lracing to produce bio fuels.
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5. 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
- K: q! k& n! |6 Uto bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.
4 ~  B; ]% n) Z& B9 `% ]: ]8 q
- P9 U6 K" h  A4 ^# f1 L0 Q; f3 W
" j* W" ^2 m. n- T" ^5 k6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
! Q3 W6 q! o# G/ K! r& Pexpected to be built in the future. Much of the energy they produce
% ^0 P! H8 y, I; N% Lwill 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.
. e% e- i! @  A; ]with new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
equipment.

$ `5 E$ e- M# j- w- O
Airlines are flying airplanes with bio-fuel. They are finding the bio-
% V2 i% h, {( u; H$ |6 e$ u/ H/ G7 Tfuel is cleaner and performs better than jet fuel.
3 U- Q2 _: a6 s) R, A

8. Cities and counties throughout the US are selling the rights to
! ~, @9 y4 d8 m3 b# k2 gcapture methane gas from landfills. This is a huge source of gas
$ M( \" Q! k% ], m" G8 Cavailable at very little cost or risk. The gas is displacing crude
! D: P9 l  j, ?) Y: x- A2 loil.

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/ S3 K1 g0 k! n# j9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
% R( i( w: J' hoil wells.
3 ^) j5 m2 Q; a

10. Solar, wind and ocean energy is displacing oil as an energy
source. Three new wind turbines are being erected every day in the US.
) A3 @' v0 W8 J# E9 k% [! D& B

5 g5 u" s* m) i4 oEach 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
5 A2 Y4 e4 @$ r, M6 O: K0 Tchanging. The important thing is that OPEC no longer has the ability
to control oil prices.


- h8 l# t' h4 eWith the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
4 p" z$ m! P1 r6 Tvalue .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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The above articles are from WSJ .............PUBLISHED ON 9TH JAN
$ [& @: x: L) L- ]) w2009 ... FYI-Only