Interesting article about Oil

wanghong

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+ l9 X9 i. s# [5 q8 d# i  v. P! qBelow is an Interesting article I found, which says that.....Do not
9 y% Z6 H0 p1 J( U9 `6 q! ?, H; Pexpect much from Crude Oil producers and future is not with the
) u" W6 ?4 ^* n0 q( x5 a: Ycompanies producing Jet fuels but Biofuels. Also no wonder if some of
these oil producer will go bankrupt or out of the business even if
7 l1 Z4 P5 W7 Z% K* J( hcrude prices improves. This implies also to good names such as Shell,
: s8 ^- c1 @' D6 ?) ?EXXON, BG, BP, Cheveron ....xyz.. oils

Recently OPEC reduced crude oil production twice over just a few
) n" F+ G% v5 q3 Amonths. 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.


There are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:
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! A5 `: S* u+ X' ^( p2 m, Q1 V1. 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.

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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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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
fuel is being produced from many plants and algae. The production
# L5 Z5 y4 T4 m. j: t( }( |( dpotential per acre in some cases is astounding. Many countries are
/ z$ |" G. H* S+ V3 ]3 ]- tracing 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
to bio-diesel producers. One pork processing plant in Oklahoma is
1 x/ u+ A4 h. V1 Vproducing 30,000 gallons of bio-diesel per day from pork fat.


7 A& Q9 [* |7 c4 }2 H6. There are 99 nuclear reactors in various stages of planning and
) e1 B# |! x) Y$ o* A1 \+ qconstruction around the world at this time. Several hundred more are
7 R0 D% b$ z3 {7 k6 Aexpected to be built in the future. Much of the energy they produce
will replace oil.

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' B! \# _( @! y- }6 ?& L0 \& n7. Every company in any form of transportaion business is replacing
' X- {, M" O2 ?/ i9 folder equipment such as trucks, airplanes, train engines, ships, etc.
6 r; O1 ~0 j2 gwith new more fuel efficient equipment. Airlines and railway companies
  t5 r$ t: N7 aare experiencing 20% to 25% better fuel econony with the new
equipment.

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Airlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.
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8. Cities and counties throughout the US are selling the rights to
, O, w( G  Z; X" Vcapture methane gas from landfills. This is a huge source of gas
+ q, p( S1 b, `& F% E0 G: O; cavailable at very little cost or risk. The gas is displacing crude
oil.
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9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
" \8 k$ f: E8 [* {" I- X3 ^: Coil 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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7 Z. m2 ~' G1 [5 J9 F' yEach of the above by itself will not make a large difference in the
8 {% I8 c" g9 X6 s, s3 _) n5 _! Aprice of crude oil but the sum of all of them together is world
2 n" D. v" d) L% b" Q. \% |changing. The important thing is that OPEC no longer has the ability
2 V5 a- a; }- c/ ]to control oil prices.
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9 _4 c5 o( v; h3 oWith the above scenario, I still believe that there are under
) I9 ^8 K- A6 f4 X8 e9 Pperformed OIL companies and probably they are yet to get the justified
value .....
  ^" A$ J/ A2 G" B5 k: B) ZIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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9 O% t0 }" {" ?& c" xThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
+ D. D" ^+ \6 M! V" W9 L2009 ... FYI-Only