Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
. e+ y; A. v4 W8 F0 Q9 j( k  U5 texpect much from Crude Oil producers and future is not with the
2 [, r8 F/ N0 A9 g2 v; p: _, Ncompanies producing Jet fuels but Biofuels. Also no wonder if some of
these oil producer will go bankrupt or out of the business even if
3 c9 ?: `) K* @# rcrude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils
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6 n! G4 h/ e  U' @+ q. X" iRecently 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
' n9 C- F, W8 t5 Kleast $50.00 per barrel. Today, oil price declined by a record amount.

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+ e- N( x$ T9 a7 K$ \7 k" R) cThere are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:


- |# ^- G# ~5 c3 m1. 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
! z) |( w2 o: ?9 g) ~$ L% ~( GArabia.
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* F, l, D0 b6 h3 X0 z+ x. }# o2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.

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3. New methods of injecting CO2 and surfactants into oil wells is
0 w' g3 d# N& a$ nbeing used to double their output.


' `! ~6 t% o1 a* v% K( k7 U" K( `4. Production of bio-fuels is beginning to reach critical mass. Bio
4 ?6 t6 y  i* i8 n' O( o2 L. ?fuel is being produced from many plants and algae. The production
5 s! U! m4 ~: {8 Hpotential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.
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9 L' g( i6 l* l5 A# U5. 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.


6. There are 99 nuclear reactors in various stages of planning and
; S. `4 X6 `* G! b& iconstruction around the world at this time. Several hundred more are
expected 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
# h4 L1 a5 _" q& \; R9 r8 Colder equipment such as trucks, airplanes, train engines, ships, etc.
with 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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" M' u/ e  d- W* ZAirlines are flying airplanes with bio-fuel. They are finding the bio-
5 N) U/ D  u1 V6 ^# e5 Bfuel is cleaner and performs better than jet fuel.

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8 M+ |" }4 N* U# l( V& U8. Cities and counties throughout the US are selling the rights to
* }1 P9 z; T2 ]4 Ycapture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
oil.

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$ v! P% i" |* m* h, W2 K/ l9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
& G3 A0 N: T2 ^$ X- ~4 {2 loil wells.


10. Solar, wind and ocean energy is displacing oil as an energy
! G7 i& I  W9 w. U7 w% ]source. Three new wind turbines are being erected every day in the US.
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2 H* E1 }! g7 L, ~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
! h! t& u$ `" P. V  D9 Ochanging. The important thing is that OPEC no longer has the ability
to control oil prices.
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4 }# Q% Z8 P% L( A; S, jWith the above scenario, I still believe that there are under
( ~% F$ G8 e# `& |performed OIL companies and probably they are yet to get the justified
value .....
/ U% [8 i" k* _; \# wIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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The above articles are from WSJ .............PUBLISHED ON 9TH JAN
6 A! y' ]- @1 a% h- x  T8 k6 }5 L2009 ... FYI-Only