Interesting article about Oil

wanghong

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0 ]& U. k0 Q* gBelow is an Interesting article I found, which says that.....Do not
3 Q  H& r" G, j/ P8 rexpect much from Crude Oil producers and future is not with the
! @0 [! [( ?3 j/ Icompanies producing Jet fuels but Biofuels. Also no wonder if some of
0 e6 P3 y) r: Vthese oil producer will go bankrupt or out of the business even if
% C. ~! d; O$ H* bcrude prices improves. This implies also to good names such as Shell,
EXXON, 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
least $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
9 g+ N1 V* r7 N) p7 h. wof so much news. These reasons are:

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" K7 g# _( j/ N+ _1. New oil has been found in Canada, Montana, North & South Dakota and
- U$ q, r. {" }in the ocean near Brazil. Each of these oil fields has more oil than
# B+ v2 j- ~0 N8 BArabia.

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* m; W- ]/ X1 w, q2. New natural gas has been found in Pennsylvania and West Virginia.
: u9 J2 p7 _3 F/ Z* oThis is the largest find in North America.
% B/ m8 s4 M! i

3. New methods of injecting CO2 and surfactants into oil wells is
& a' D; M; r8 i4 e4 r3 V5 [being used to double their output.
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+ y$ H. t( F/ U+ H0 [) F4. Production of bio-fuels is beginning to reach critical mass. Bio
fuel is being produced from many plants and algae. The production
  a/ ^; F0 a; y  M, ?) V, Q% c' upotential per acre in some cases is astounding. Many countries are
+ k. @( X: v+ P" R- \: Bracing to produce bio fuels.


5. Virtually every restaurant in the US and all food processing plants
- b, v: t- e, N1 ]: g: ]are now selling their used oil to bio-diesel producers. Every pork,
8 }2 B6 v6 U! \4 x! K. ~0 N4 Ecattle, turkey and chicken processing plant will soon sell their fat
  b! V8 P% H9 H0 l3 ?( M2 @to bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.


7 v( z5 \( Q; l/ O( D6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
9 d& j4 o* x' X7 O5 Q# q' q, a9 x7 ?expected to be built in the future. Much of the energy they produce
will 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
1 _  P, D6 T# K) Dare experiencing 20% to 25% better fuel econony with the new
) B! `; }9 _- x. p. i. Xequipment.

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Airlines are flying airplanes with bio-fuel. They are finding the bio-
. }7 [2 w* `, d( r0 ]! j1 Gfuel is cleaner and performs better than jet fuel.
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5 m2 d/ a( M4 ]$ C: J8 ]& C8. Cities and counties throughout the US are selling the rights to
: f' X5 u( m) ~; C! n2 xcapture methane gas from landfills. This is a huge source of gas
* S6 w5 o, J& b9 Eavailable at very little cost or risk. The gas is displacing crude
oil.
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" y8 V5 [& g6 L0 E3 t9. Coal is being transformed into a clean burning liquid fuel. The CO2
% g6 {/ ~6 j* w" T$ ?produced as a byproduct is sold to oil companies for injection into
8 ?. p; v6 N4 {7 `oil wells.
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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.

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Each of the above by itself will not make a large difference in the
  A* j% v8 K8 tprice of crude oil but the sum of all of them together is world
# m# j5 F3 {8 @  i1 Rchanging. The important thing is that OPEC no longer has the ability
) A& I. K, r. t6 L/ S! s$ D1 hto control oil prices.

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; C! K0 f( q& m4 X* v. pWith the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
value .....
$ ?1 C2 _+ I! E8 o( }IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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# v. S7 c& e1 b9 I3 mThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only