Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
; [" T" _, R. t2 T7 s& z- qexpect much from Crude Oil producers and future is not with the
5 Z6 O0 T# ~* {  X7 O/ Lcompanies producing Jet fuels but Biofuels. Also no wonder if some of
3 S4 X0 L* ~9 A  n9 a* v4 x, d; bthese oil producer will go bankrupt or out of the business even if
crude prices improves. This implies also to good names such as Shell,
2 F9 Y$ C- h# ^+ Y( E8 S8 a5 \EXXON, BG, BP, Cheveron ....xyz.. oils

, ?+ x5 c6 g! o% L+ a' hRecently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
/ `8 {4 Q; v% R* R+ V% b- l. FA 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.
, v5 j/ w) [* I

There are several reasons the price of oil is decreasing in the face
; I) I/ ~6 U; N' z" ?& nof so much news. These reasons are:
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2 c& I) j+ \( C, I) E8 \  _$ G1. New oil has been found in Canada, Montana, North & South Dakota and
! h) E3 C2 s  _: Y& din the ocean near Brazil. Each of these oil fields has more oil than
Arabia.


/ E  W! Z  t2 M% Z2. 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
/ O# V" ^  Y$ `1 ?, G1 Wbeing used to double their output.

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4. Production of bio-fuels is beginning to reach critical mass. Bio
! V( }0 f; z$ @; F  _9 J0 ~( {fuel is being produced from many plants and algae. The production
' x9 @. A, {& Q: @/ }- G+ Hpotential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.
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5. Virtually every restaurant in the US and all food processing plants
0 [# V" p2 p. Zare now selling their used oil to bio-diesel producers. Every pork,
cattle, turkey and chicken processing plant will soon sell their fat
" v  m, _3 h, u0 sto bio-diesel producers. One pork processing plant in Oklahoma is
4 T& X( `5 n; wproducing 30,000 gallons of bio-diesel per day from pork fat.

9 R, U: K4 T9 x+ n" U& O5 D
, A, B$ u) m& o" m& Z' ]1 [) g+ B' A5 h6. There are 99 nuclear reactors in various stages of planning and
; }, t( t1 e+ B3 ]$ w* V9 ~, r, Xconstruction around the world at this time. Several hundred more are
expected to be built in the future. Much of the energy they produce
' _: d5 y/ [: U" v+ k# E7 i7 R" }will replace oil.
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! o9 F$ J1 K' c* C- U4 v. |' q
) P! k, s: h6 V7. Every company in any form of transportaion business is replacing
older equipment such as trucks, airplanes, train engines, ships, etc.
2 b  e: |' x$ c& ~9 k8 Kwith new more fuel efficient equipment. Airlines and railway companies
are 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.
4 p+ f) B4 ?5 \$ ?: x0 s8 n) `

8. Cities and counties throughout the US are selling the rights to
7 j" w% D/ |% a: |3 h/ ~capture methane gas from landfills. This is a huge source of gas
- h1 p3 b/ W9 G( x/ m1 J5 q( Pavailable at very little cost or risk. The gas is displacing crude
( y0 x3 i. g6 a. d: s5 e) O' o5 n! u2 Roil.

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9. Coal is being transformed into a clean burning liquid fuel. The CO2
6 F% K# c- n, \0 ]( ]& aproduced as a byproduct is sold to oil companies for injection into
5 \* v) V" m5 [, _# O+ b- Noil wells.
6 @6 ]3 p% e1 ?7 _0 `
6 \& V) Y' C) p0 ~/ P
* K* O! j; i/ l  b6 r10. 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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0 ~9 l. }' e6 b) r: l: _. lEach of the above by itself will not make a large difference in the
4 i/ V+ u/ Z9 _/ o' b- Mprice 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
) J  s, k0 q. k) C% m) n# Jto control oil prices.
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+ P; B' i; \; [( K: s7 E* ^( lWith the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
9 e' B2 N) q% `0 `1 `value .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...


The above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only