Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
7 B, Y) `% s# K4 bexpect much from Crude Oil producers and future is not with the
companies producing Jet fuels but Biofuels. Also no wonder if some of
, h2 C& L7 S7 uthese oil producer will go bankrupt or out of the business even if
crude prices improves. This implies also to good names such as Shell,
1 Q8 a% q5 F2 K) ], aEXXON, BG, BP, Cheveron ....xyz.. oils

1 L9 U$ x- O% D3 K* kRecently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
$ c) f$ O; ^1 d! z2 CA 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
+ e; H8 D2 K7 b# O! G- |of so much news. These reasons are:


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
+ Q6 o% |! ~& ]$ J* G+ _( w8 m; gArabia.

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2. New natural gas has been found in Pennsylvania and West Virginia.
4 ]( Y3 [, r; V9 hThis is the largest find in North America.
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5 Y+ ~9 }2 |8 H' h- v2 K+ O
$ N9 s" h9 M# e, R: v3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.

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* L; Z3 ]7 e  [4. Production of bio-fuels is beginning to reach critical mass. Bio
2 u9 R. h! l" `) K$ A, l! ]0 V, Ffuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.


& N& H- m3 b+ x" z& A& M5. Virtually every restaurant in the US and all food processing plants
+ s  X4 |: M9 j+ P! l& z( Bare 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
producing 30,000 gallons of bio-diesel per day from pork fat.

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6. There are 99 nuclear reactors in various stages of planning and
, x" a8 k/ B2 `3 m. I3 x% a) econstruction around the world at this time. Several hundred more are
7 H! W3 u2 c" ^: Q6 B% aexpected to be built in the future. Much of the energy they produce
3 n3 ]- d8 S" B) [$ X, {0 swill replace oil.
: ~# t$ z# y5 }6 {4 Y! y, U3 ~

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
4 N; g* k+ B: s+ Y2 kare experiencing 20% to 25% better fuel econony with the new
7 l& \4 V3 J  _2 r- aequipment.

1 U5 h0 r0 d; k( ~. ^7 K
& }# o, u( e$ Z( V) A% kAirlines 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
; y9 `+ E; ?! t6 B4 ucapture methane gas from landfills. This is a huge source of gas
: Q0 U8 ?; N8 c' bavailable at very little cost or risk. The gas is displacing crude
; [; y" h! m( l+ \. x/ yoil.
9 T; b$ b$ S1 C1 {

3 O& r; m8 H" R! }# S: `$ F9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
oil wells.
: |; x0 b' A* N& e% y/ I

10. Solar, wind and ocean energy is displacing oil as an energy
2 ^0 U5 h: w7 V9 q4 r5 L0 Nsource. Three new wind turbines are being erected every day in the US.


Each of the above by itself will not make a large difference in the
. `3 \6 ~1 L+ C$ `; p; vprice of crude oil but the sum of all of them together is world
' }8 t( e: w3 x& \1 [+ I1 tchanging. The important thing is that OPEC no longer has the ability
: Y; G* N7 h( W; t( @to control oil prices.


+ i# A, H0 A7 zWith the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
value .....
( i2 _) A# F: ]) BIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
# \& n* C- r& ]# t

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