Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
! h  }9 Y( U- Ocompanies producing Jet fuels but Biofuels. Also no wonder if some of
these oil producer will go bankrupt or out of the business even if
! ^+ e  m% p+ C3 xcrude 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
months. 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.
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There are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:

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/ P# E1 x* ^2 g) y( P6 C, `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
1 c; V0 s, j! j" U1 E- X# ZArabia.
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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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9 ]* C4 j+ @: B( V4 p1 m3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.
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  c0 ]. B5 H7 {9 A: k! y" E4. Production of bio-fuels is beginning to reach critical mass. Bio
- _1 b! K* m) n$ L) r9 Pfuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
/ d3 ^# n; l; r$ g4 p) rracing to produce bio fuels.

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, Q' k( U4 O* x  ?- ~5. Virtually every restaurant in the US and all food processing plants
! A1 n' D9 M6 g6 j, ware now selling their used oil to bio-diesel producers. Every pork,
0 v% M% A% b; a2 K$ a4 jcattle, turkey and chicken processing plant will soon sell their fat
to bio-diesel producers. One pork processing plant in Oklahoma is
$ M% N# Q( {# E: R# dproducing 30,000 gallons of bio-diesel per day from pork fat.
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% N- \* K, Q( G  T5 K6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
, d1 r, {" Y; F: @: R2 ~, U4 Aexpected to be built in the future. Much of the energy they produce
/ P# g( g+ K- l+ ?will replace oil.
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& {. u% T: g, Q+ C3 V& `7. Every company in any form of transportaion business is replacing
- e8 k6 D# m! A9 P; Iolder equipment such as trucks, airplanes, train engines, ships, etc.
/ t) V7 l3 S2 n+ h5 Z% p3 Dwith 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-
8 }1 k8 R) L/ y' Z- ]fuel is cleaner and performs better than jet fuel.

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2 [4 y: T. y. O5 `/ _/ N: t1 f8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
oil.


9. Coal is being transformed into a clean burning liquid fuel. The CO2
6 ^2 @1 h. L3 u) \; Gproduced as a byproduct is sold to oil companies for injection into
oil wells.
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- S; C" x) v  s3 c4 N& ?10. Solar, wind and ocean energy is displacing oil as an energy
- z+ v6 e) ]8 ]; O  Fsource. Three new wind turbines are being erected every day in the US.
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Each of the above by itself will not make a large difference in the
0 j7 w2 L2 r8 dprice of crude oil but the sum of all of them together is world
/ o2 \0 ~  o0 R1 v) q* |changing. The important thing is that OPEC no longer has the ability
to control oil prices.

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With the above scenario, I still believe that there are under
1 C$ V- O8 h$ t6 L3 uperformed OIL companies and probably they are yet to get the justified
- z+ t6 {- D! L& @8 ~9 j2 Nvalue .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...

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  @2 g  T$ w  ^; M( \% f! TThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
1 l( E8 W( s5 O  t# L! _2009 ... FYI-Only