Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
3 @' {1 N2 A9 l$ bexpect much from Crude Oil producers and future is not with the
! h' ~6 l$ T8 [; c( i  y% [& Jcompanies producing Jet fuels but Biofuels. Also no wonder if some of
these oil producer will go bankrupt or out of the business even if
. T! [: e6 J2 Q; @crude 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
% }9 H! x5 l- Xmonths. 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
5 D( i5 M! U- U6 L& U: Q! zleast $50.00 per barrel. Today, oil price declined by a record amount.

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3 O! `- G5 o3 H% q3 aThere are several reasons the price of oil is decreasing in the face
" ~7 I( R% C1 A2 i; |. kof so much news. These reasons are:


4 ^5 G' p9 g/ N$ ?1. 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
2 W: ^1 l/ ?4 C$ O4 r* hArabia.
9 x/ |% v: q1 B% o, [
7 y5 Z; H+ Z3 T4 W# g
2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.

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; Y/ ~7 l4 X' ?6 C- U, h3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.


4. Production of bio-fuels is beginning to reach critical mass. Bio
fuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
( A- q1 ]8 h; q4 P6 P1 K# q% dracing to produce bio fuels.

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: Z; y; U. ~. X8 H8 ]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
0 ]( \8 u$ s. \2 U7 k" Bto bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.


+ `+ V3 E' H" C/ J' i6. There are 99 nuclear reactors in various stages of planning and
9 b1 W4 H2 c! z' o' T9 d( J6 v& kconstruction around the world at this time. Several hundred more are
2 H) R: e# T; [. o6 @) w2 j+ Jexpected to be built in the future. Much of the energy they produce
1 Q+ U7 Z9 d9 S6 Z& Nwill replace oil.


, }. n$ o6 ?7 a0 H/ c6 |* D7. 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
; S% t( n6 u- I% O8 Nare experiencing 20% to 25% better fuel econony with the new
, q3 A9 Q- B- p) w! Requipment.


! R, n3 H& L1 w! K7 l( S4 rAirlines are flying airplanes with bio-fuel. They are finding the bio-
3 X4 X- E% z6 A/ Qfuel is cleaner and performs better than jet fuel.
, M' h) I* N! ~. V& \' {

8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
7 a! `+ ^+ }1 D6 X" S" b6 |available at very little cost or risk. The gas is displacing crude
( j. z. T' V& i; K4 ]oil.
6 b- `7 ?" Y+ Y, \
) T# j& u! R. W1 Z
" H0 L9 D$ d3 ~. M9 O  g9. Coal is being transformed into a clean burning liquid fuel. The CO2
/ p6 G- d( C- ~6 c, E% T" l9 [produced as a byproduct is sold to oil companies for injection into
  s) Q; R8 X0 i5 yoil wells.
1 e0 _/ \) C  Z- W2 U

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.
  b7 }* v- C# }$ v1 I: q! p9 f

Each of the above by itself will not make a large difference in the
6 I7 T8 H% C' Z. ?price of crude oil but the sum of all of them together is world
changing. The important thing is that OPEC no longer has the ability
/ i: {+ V' }2 bto control oil prices.

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With the above scenario, I still believe that there are under
' X" ~5 P# M8 i; t* Xperformed OIL companies and probably they are yet to get the justified
value .....
, Q+ B. c# V: d; H% u4 U% ^) EIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
/ h/ `5 G& U+ r& Y  G, u
' F8 P$ X* d  z, f5 T
The above articles are from WSJ .............PUBLISHED ON 9TH JAN
; u" d& k" r/ x0 z( n( D2 U* T2009 ... FYI-Only