Interesting article about Oil

wanghong

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6 S/ @5 s7 A$ _; p, B) e6 nBelow is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
. R6 J2 r5 ^; h8 ]5 Q3 a- 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
% D8 x% B" ~: i5 W* G" H5 Ocrude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils
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8 M# O% W: x( H: W; ^& F% SRecently 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
0 F( B! W9 b. y' kleast $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:


4 H' x# t. d, ^9 y% |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
3 ~% E2 v" O, _Arabia.
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4 F& [* y+ Q' \) d2. 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
- W7 i2 o( e; f4 \0 Ibeing used to double their output.
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4. Production of bio-fuels is beginning to reach critical mass. Bio
, t2 {% K, R% J; G* V0 qfuel is being produced from many plants and algae. The production
2 J. V( o' J7 ?5 A* M9 ypotential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.
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7 x$ M5 s" ?; T" _- `; Z7 E$ y& m5. Virtually every restaurant in the US and all food processing plants
* h- D& B! c5 W9 ^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
6 V# A9 G& u2 ^  W7 \producing 30,000 gallons of bio-diesel per day from pork fat.
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2 ~6 M0 J3 m& e' s( Y) u4 V6 h5 ~6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
- c# o  y. N" uexpected to be built in the future. Much of the energy they produce
1 |) \. f2 y: ~: g! V9 W9 Gwill replace oil.
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7. Every company in any form of transportaion business is replacing
' b. v. v& G- K2 G7 Y4 }older equipment such as trucks, airplanes, train engines, ships, etc.
" W- d1 I3 c  Y/ k8 rwith new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
, G. f9 o# s. Sequipment.
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4 U0 F/ h' ~0 L+ n, S  T4 cAirlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.

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8. Cities and counties throughout the US are selling the rights to
$ z  T9 C: z5 q& |capture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
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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
oil wells.
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10. Solar, wind and ocean energy is displacing oil as an energy
/ {  y5 j( ]+ \( q6 S' Xsource. Three new wind turbines are being erected every day in the US.

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1 k, I; V  x/ d/ h$ h3 R0 y) qEach 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
& R* O- m! @# {9 g2 Xchanging. 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
8 Z7 p- `# W0 R0 ?. g8 W: h$ Z( ^5 operformed OIL companies and probably they are yet to get the justified
, @  {  B0 b& j2 xvalue .....
- u; ^" d# l: R, o+ z- e6 WIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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) I4 I" v  l, yThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only