Interesting article about Oil

wanghong

--------------------------------------------------------------------------------
9 H6 m" l3 o6 K8 ^9 A. v6 e4 dBelow is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
" i8 u+ O5 v* d4 {companies producing Jet fuels but Biofuels. Also no wonder if some of
- U* P) U: ~7 E" K9 Qthese oil producer will go bankrupt or out of the business even if
! `% F8 c8 k5 p+ mcrude 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
5 V/ O& }/ Q( [months. There are three wars going on in Gaza, Iraq and Afghandistan.
( O: T5 z* ^2 w- W( u; m* i- hA year ago these things would have spiked the price of crude oil by at
least $50.00 per barrel. Today, oil price declined by a record amount.
+ @4 s: |) A: J; {; x$ {+ x6 F

There are several reasons the price of oil is decreasing in the face
4 ^; v" b# x  D4 S( Y4 z7 T& U: D. H3 Zof so much news. These reasons are:
; X" l( o. r$ \' ?7 N& x

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.


3 u5 M$ n$ w2 Y1 n  V# T6 ?; }9 ]2. New natural gas has been found in Pennsylvania and West Virginia.
) e# U! U3 o) q% c6 X$ M. V+ i8 qThis is the largest find in North America.
1 Y6 i4 E9 ?6 E4 |, R
8 W7 j* D" `! |1 H5 W7 C
3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.
- ?( t  f8 p$ a+ O9 t

4. Production of bio-fuels is beginning to reach critical mass. Bio
& y& j! @. x) ^fuel is being produced from many plants and algae. The production
6 k- D# V8 K: k0 _; K; Wpotential per acre in some cases is astounding. Many countries are
/ j7 ]; Q" B: \racing to produce bio fuels.
- h! U: X: K# U. ]4 M2 g9 [( S/ y

- R" f! N2 d. d, q2 `8 k5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
1 U0 o: Z4 P  Y! `. ]) F/ U; M. I5 kcattle, turkey and chicken processing plant will soon sell their fat
* [8 u# |  n% g+ a/ H; w7 u* Q; ~to bio-diesel producers. One pork processing plant in Oklahoma is
. r! Q' s7 C; ?7 ~8 F  jproducing 30,000 gallons of bio-diesel per day from pork fat.
" a+ \4 |2 Y+ l# C% b

6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
$ ?' f& r0 G* l: H. |( ]expected to be built in the future. Much of the energy they produce
( i, R( E+ S5 S0 U1 M, e) [. B% Nwill replace oil.

- O& `7 q4 v' Z* z
7. Every company in any form of transportaion business is replacing
# j+ c$ e1 W* ?% H+ a% ~5 p2 zolder equipment such as trucks, airplanes, train engines, ships, etc.
with new more fuel efficient equipment. Airlines and railway companies
) i7 Z  J% d9 F: n+ E8 o. {are experiencing 20% to 25% better fuel econony with the new
8 F) R; h4 G, f: Z- }equipment.

' m" {, T6 o) W% T
1 d+ v% Q- Y7 b* S/ H  }# zAirlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.
* g) A' b: W( Q9 k
; v; n3 [7 a# R  _% ?
8. Cities and counties throughout the US are selling the rights to
- b0 M! _1 d( U! L7 y' U! mcapture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
4 _# D/ s4 E- _# i' F2 Joil.
9 S0 c7 ]% A4 q* S
$ N) w! a# w- k. C/ \! v! K9 O0 D
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
1 f* j  H  y7 u/ @) D! \oil wells.
" h( ^% U* J9 X

10. Solar, wind and ocean energy is displacing oil as an energy
* h8 P9 ~1 C. D; O8 zsource. 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
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
- J5 P, y/ x* s6 oto control oil prices.


2 `: |6 i4 I& p* `8 kWith the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
9 A; h" C- Y9 {value .....
& Y$ f3 s3 Z3 x5 S2 a9 J. r& I. ~+ TIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...

2 U  \' u) B. ~% T" B' _
, s7 X3 X: f; X% l) c) MThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only