Interesting article about Oil

wanghong

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" r' T' x0 V, L' M5 w$ a( b" yBelow is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
1 A% F% _' }4 scompanies producing Jet fuels but Biofuels. Also no wonder if some of
/ N* o0 g" y& ?" e& r/ A1 Othese oil producer will go bankrupt or out of the business even if
crude prices improves. This implies also to good names such as Shell,
. W, y/ _( k/ p* y% K( Y8 Y4 wEXXON, BG, BP, Cheveron ....xyz.. oils
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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 $50.00 per barrel. Today, oil price declined by a record amount.
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- Y# m3 o- F1 a$ h5 lThere are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:
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1. New oil has been found in Canada, Montana, North & South Dakota and
4 h. O* x+ P, B* P) _in the ocean near Brazil. Each of these oil fields has more oil than
- y* b; _# `' e- ~5 QArabia.
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4 ?$ h- [/ @0 w2. New natural gas has been found in Pennsylvania and West Virginia.
; d+ x* u& j) k# Y( OThis is the largest find in North America.

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# v3 J2 g. Y  j. P5 t3 I2 k8 }3. 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
fuel is being produced from many plants and algae. The production
1 }, u) f, @/ Hpotential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.


( P% u. [, v; ~. Y" \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
. e& A' d! o8 R6 J* Xproducing 30,000 gallons of bio-diesel per day from pork fat.


6. There are 99 nuclear reactors in various stages of planning and
$ Q- K6 R4 m6 yconstruction around the world at this time. Several hundred more are
expected to be built in the future. Much of the energy they produce
2 W  t5 l* b; Q3 ?! lwill replace oil.
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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
" U; J+ o; M* u0 A, }; P1 \1 I/ @are experiencing 20% to 25% better fuel econony with the new
equipment.
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5 X& [) W  `9 H0 N. q2 ]& s( i5 S4 R& KAirlines are flying airplanes with bio-fuel. They are finding the bio-
  a. c% f3 T' e+ a: Qfuel is cleaner and performs better than jet fuel.


8. 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
2 `* K1 m% C+ U; J  noil.

1 D8 h0 C8 M: A# s. C
8 F  ~0 o0 Z1 ^4 e1 H1 U- E9. Coal is being transformed into a clean burning liquid fuel. The CO2
! r7 A" |7 ^2 H0 @* `8 yproduced as a byproduct is sold to oil companies for injection into
oil wells.

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10. Solar, wind and ocean energy is displacing oil as an energy
9 [7 w& ~- H! Y+ P* U! lsource. 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
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
8 b4 }, t1 u7 C  ?! W, Uto control oil prices.
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1 K- s1 _' W) r# g6 kWith the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
value .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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The above articles are from WSJ .............PUBLISHED ON 9TH JAN
* {, U* ~/ Z+ m  q2009 ... FYI-Only