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
* \9 \- |9 z" @; O$ q6 ~. wthese oil producer will go bankrupt or out of the business even if
: p3 G4 J& v" L0 \7 i6 V8 }$ Ycrude prices improves. This implies also to good names such as Shell,
# z, O: X# m( X! o0 T# M9 gEXXON, BG, BP, Cheveron ....xyz.. oils

Recently OPEC reduced crude oil production twice over just a few
* t8 ]) L* y/ l' H% I4 Jmonths. 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.
( r4 t' [, k( _" u; ~

There are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:


1. New oil has been found in Canada, Montana, North & South Dakota and
) k) d6 I" c$ `) P1 u5 Gin the ocean near Brazil. Each of these oil fields has more oil than
3 s% _* O3 }' T$ X: N2 vArabia.

, H# A) |" A3 F" [- A- h* N$ u# g
5 ]+ K9 M& F: B/ Y2. New natural gas has been found in Pennsylvania and West Virginia.
& w' E* ]2 ]* {" z" H5 b, ~This is the largest find in North America.


3. New methods of injecting CO2 and surfactants into oil wells is
( u% r* q2 X7 E7 r8 @being used to double their output.
. P4 ~6 Q3 |' ^8 S& n9 M

4. Production of bio-fuels is beginning to reach critical mass. Bio
6 m$ J6 Y, ]7 d4 Q1 B$ S: ?: q  m) efuel is being produced from many plants and algae. The production
1 u9 `# n# U3 f. Npotential per acre in some cases is astounding. Many countries are
0 ]$ |- ?* y; A; A, jracing to produce bio fuels.

- P& l& [* ~; k5 ~
. k4 Q/ q5 Z: J5. Virtually every restaurant in the US and all food processing plants
. E* m. e, m4 ~% z6 Gare 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
: m- t9 X, ?& v6 T6 W8 V0 ?2 [producing 30,000 gallons of bio-diesel per day from pork fat.


6. There are 99 nuclear reactors in various stages of planning and
" v' |7 x3 L3 E6 t8 Mconstruction around the world at this time. Several hundred more are
expected to be built in the future. Much of the energy they produce
& C: a( X! M' P' Z. Pwill replace oil.

+ G, A6 w) y) D
8 o# z! z* i- {3 V5 p7. Every company in any form of transportaion business is replacing
# o& v/ L+ b# g4 h" r* }older equipment such as trucks, airplanes, train engines, ships, etc.
. a  x; d* W) d' A4 U/ P* W& wwith new more fuel efficient equipment. Airlines and railway companies
  w7 v  ^$ r7 G. |3 |are experiencing 20% to 25% better fuel econony with the new
$ X1 }6 o, j% yequipment.
+ W( Z7 I1 Z' _* r+ Q

Airlines are flying airplanes with bio-fuel. They are finding the bio-
# p( ?/ ^# N6 |0 m/ X! sfuel is cleaner and performs better than jet fuel.


0 \% R/ N& D2 h* k" Z4 P8. Cities and counties throughout the US are selling the rights to
7 A3 v. b* i( `% F3 z+ ]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.
$ S/ R/ e6 {5 U1 q4 p
& }; ^: d  a# a* b
9. Coal is being transformed into a clean burning liquid fuel. The CO2
( g  j4 D& l; z- _" _produced as a byproduct is sold to oil companies for injection into
8 i& |+ n' ^+ u+ _. D4 eoil wells.
. ]% {& V8 H- U  d- N' d3 t
9 |' A0 d' W- w* y; ]* g- k
4 w2 R3 ]* e: \+ l& R" S- S+ P10. Solar, wind and ocean energy is displacing oil as an energy
! D+ P% S! t* U: i7 Z9 E: Q7 _source. Three new wind turbines are being erected every day in the US.
  c6 {6 d9 e4 f7 B6 U
0 Y5 t# L7 Z6 e& U) p
Each of the above by itself will not make a large difference in the
6 f8 ?4 a1 \9 S. V' e0 W$ v( ^price of crude oil but the sum of all of them together is world
1 f  Z4 T, _9 G9 ]6 W' cchanging. The important thing is that OPEC no longer has the ability
+ g) L0 k- U! q" \to control oil prices.
9 c/ M! _. c! l% Y6 w( J5 D
+ K3 ^1 x! |! }. s! f0 F$ E7 B
3 D2 {5 j0 I3 _8 f0 wWith the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
value .....
+ g% w+ v6 m4 I9 p# B+ yIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
5 v7 C' l2 Q3 K/ s6 D2 W
* |& ^0 A8 y$ T, l: ]
# c/ x0 x" \9 b' Y! c5 mThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
( D7 ~. n$ A- e4 F0 D3 H7 ]2009 ... FYI-Only