Interesting article about Oil

wanghong

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5 t- x' y3 }. C6 f2 ^: d1 [, PBelow is an Interesting article I found, which says that.....Do not
6 M$ E9 {" r! y+ z3 d$ Kexpect much from Crude Oil producers and future is not with the
) O* n3 r" ^( zcompanies producing Jet fuels but Biofuels. Also no wonder if some of
. N/ G" c) K+ J3 e0 ethese oil producer will go bankrupt or out of the business even if
- \9 {# q( f' |, ^- \/ {/ qcrude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils
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( C) w* J, r4 ?) w2 @Recently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
$ O5 y1 n% Y# Y3 q( r! \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
8 V1 d6 q( f1 C- _; `- Sof so much news. These reasons are:
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1. New oil has been found in Canada, Montana, North & South Dakota and
: i6 T/ c( j4 w3 Z& Qin the ocean near Brazil. Each of these oil fields has more oil than
8 H8 z5 i. r6 n! B3 O, M8 o2 |% tArabia.
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2. New natural gas has been found in Pennsylvania and West Virginia.
% a& r9 K# [+ k) H) c) L9 `This is the largest find in North America.
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9 H8 m% X; ^4 ?: I# K3. 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
5 f; i+ M  m- L* p! b; yfuel is being produced from many plants and algae. The production
% ^1 S2 D8 B0 K$ D. p3 U2 jpotential 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
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
producing 30,000 gallons of bio-diesel per day from pork fat.

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, O! l: P2 \% B0 b4 i- q8 D/ `0 j6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
" X1 D5 ^9 _  R) F3 vexpected 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
/ Y" u( |/ S3 Q; o% z1 u0 ^older equipment such as trucks, airplanes, train engines, ships, etc.
8 n2 U) h3 q* l) n2 {% Y& S# lwith new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
6 U( k1 u6 P5 z6 N6 nequipment.
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' \- k" @; t: Z" o0 U: n7 D' R; ^Airlines are flying airplanes with bio-fuel. They are finding the bio-
! k6 R  k" R0 I# e+ |* Lfuel is cleaner and performs better than jet fuel.
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) F+ E, M' t4 }# T# X" H8. Cities and counties throughout the US are selling the rights to
$ M- X9 s. W; }- o0 V- x7 P8 q5 \capture methane gas from landfills. This is a huge source of gas
; e$ Q: v5 ?, ~7 g3 L% davailable 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
, {8 Y* }+ d" w* J1 y; Jproduced as a byproduct is sold to oil companies for injection into
oil wells.

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! g. [+ q. I6 ~/ l/ x+ i10. Solar, wind and ocean energy is displacing oil as an energy
4 S1 [7 X( C3 u0 {6 J1 [: x5 ?8 @source. Three new wind turbines are being erected every day in the US.


2 \% y$ i2 ?+ P( T; e8 Q& A) O) iEach of the above by itself will not make a large difference in the
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
+ A3 Q0 K- W% `! \to control oil prices.

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With the above scenario, I still believe that there are under
. K$ o% o- }* I1 ~) @performed OIL companies and probably they are yet to get the justified
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IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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- i7 @4 [& i' K* q. c: l: n/ G, kThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only