Interesting article about Oil

wanghong

--------------------------------------------------------------------------------
Below is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
5 w4 e3 L7 s  d) w. [companies producing Jet fuels but Biofuels. Also no wonder if some of
! G3 W1 e7 l  o5 hthese oil producer will go bankrupt or out of the business even if
0 L6 l  O. z+ C* {7 ~* ~crude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils
5 g* Q* u: C1 w* K$ \5 `
' ?/ r% h: a) M/ [! c5 CRecently 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
7 I9 ~7 @5 y) D# {least $50.00 per barrel. Today, oil price declined by a record amount.
7 C  r9 w" b, B0 }2 M4 @5 T: [

; Y0 t6 C2 g  S% ^4 Y) F( sThere are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:
: w7 y0 B- x  v6 N
9 u& w+ ^. V9 O; s1 Z; |/ ]4 P
; K( P% e0 ]9 N2 [; h: n& u1 @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
Arabia.


2. New natural gas has been found in Pennsylvania and West Virginia.
. Y) X% u: M. O+ {3 XThis is the largest find in North America.
* q6 R1 {$ v5 }6 h( D! [; p: L
6 n' d9 x2 H! B
3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.
) j- p+ b2 b* S& X5 `  q

4 V% @* D  N% A/ K3 v+ U' W4. Production of bio-fuels is beginning to reach critical mass. Bio
  x0 d8 _( e, m0 H2 Nfuel 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.
" v. B5 ]2 J  L7 K. t* Y1 L

5. Virtually every restaurant in the US and all food processing plants
: d9 S/ W. }8 L9 r1 J, Jare now selling their used oil to bio-diesel producers. Every pork,
+ B* e* F' s# f5 G3 x4 G# _cattle, turkey and chicken processing plant will soon sell their fat
, B& d/ L0 t2 {- j8 N  q# ~7 hto bio-diesel producers. One pork processing plant in Oklahoma is
9 `, T* u( D, a( x* ]) Pproducing 30,000 gallons of bio-diesel per day from pork fat.
, s6 B# r7 q3 _
( P( P2 c! X5 {, E+ K$ u/ L* i
! V1 p* L! f0 G' Q1 l2 g7 H6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
' U" G. Z' W1 U4 \% hexpected to be built in the future. Much of the energy they produce
# N& ]6 d; B5 U) I2 H! `, Z3 x- Dwill replace oil.


. [8 Z# q. e( m: H* d7. 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
- I! o% ~- X, Pare experiencing 20% to 25% better fuel econony with the new
+ r: |( K- `* F% p% R7 ^# [equipment.


Airlines are flying airplanes with bio-fuel. They are finding the bio-
3 @) P3 b, d; jfuel is cleaner and performs better than jet fuel.
" _1 `1 ]# w8 k" C' ]2 I( o

" s6 T2 K2 u& m8 A( Q2 \: h8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
( ?" G& e" D: j; s" r2 Pavailable at very little cost or risk. The gas is displacing crude
/ }+ L. Y8 w- o5 M1 \" Doil.


, I) c+ z+ a. T; T/ z; ?0 {9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
' b, G4 L% F! K! qoil wells.


; L5 D2 T! \7 o9 K8 z10. Solar, wind and ocean energy is displacing oil as an energy
8 ^$ H2 l) n' V' l$ M4 M! B" osource. 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
$ d' S8 |+ L( c5 @! Sprice of crude oil but the sum of all of them together is world
8 P5 {  r0 F' c- x  S% H  W( o9 O$ Nchanging. The important thing is that OPEC no longer has the ability
to control oil prices.


$ A! s2 }, v- r. U1 Q$ tWith 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 ...
3 @1 d% P1 j% d8 e8 l

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