Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
7 b. F( A! x, p# }( V6 i4 f, _; Xexpect much from Crude Oil producers and future is not with the
2 F2 x7 [& O' h& K0 }7 O4 `  Q2 Ccompanies producing Jet fuels but Biofuels. Also no wonder if some of
  g/ ]' u( ?4 \, V0 ~6 ythese oil producer will go bankrupt or out of the business even if
$ x6 T8 m  q; y  g, x  S9 k) jcrude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils
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& p+ I3 N6 l4 a0 F$ u4 vRecently 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
$ M, n# \- B: ?. eleast $50.00 per barrel. Today, oil price declined by a record amount.


There are several reasons the price of oil is decreasing in the face
* t7 e  B4 Q; b: t9 F. eof so much news. These reasons are:
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; C- ^! @; s+ k( S2 Y* d1. 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.
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2. New natural gas has been found in Pennsylvania and West Virginia.
3 p* z" R2 g: {  L) N5 W4 W, kThis is the largest find in North America.

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3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.


4. Production of bio-fuels is beginning to reach critical mass. Bio
. n. v0 j4 ~% o: G* T8 X, ufuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
3 X* b' W5 \& v4 V' [& N' yracing to produce bio fuels.

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5. Virtually every restaurant in the US and all food processing plants
4 I' L4 s3 w* R9 T$ B8 P8 @are now selling their used oil to bio-diesel producers. Every pork,
cattle, turkey and chicken processing plant will soon sell their fat
2 |( S% u6 Y- \6 N4 l; h! T3 yto bio-diesel producers. One pork processing plant in Oklahoma is
5 r2 p) ]5 {+ Aproducing 30,000 gallons of bio-diesel per day from pork fat.


6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
0 l! j( {3 h( ?# \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
, s( h- d( L' K, F, aolder equipment such as trucks, airplanes, train engines, ships, etc.
with new more fuel efficient equipment. Airlines and railway companies
, n; t$ y* R/ e( N4 vare experiencing 20% to 25% better fuel econony with the new
equipment.
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Airlines are flying airplanes with bio-fuel. They are finding the bio-
. f) D8 r+ ], X. K" {fuel is cleaner and performs better than jet fuel.
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1 s# _# B; l3 _  g' f4 [5 l+ Z8. Cities and counties throughout the US are selling the rights to
1 r+ b) A6 E1 \8 \! `* ?$ ncapture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
5 _' U# O( e9 L' _oil.
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9. Coal is being transformed into a clean burning liquid fuel. The CO2
# }- Z# |5 i9 s6 jproduced as a byproduct is sold to oil companies for injection into
/ o# N8 E; r7 ?" }; E+ t. f- Eoil wells.


! [# r& u. B. Z% v9 l10. Solar, wind and ocean energy is displacing oil as an energy
source. Three new wind turbines are being erected every day in the US.
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+ m" V0 i' ~2 ]- u$ ^4 a. {& k% XEach 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
6 W8 {+ w7 ^2 ]9 pchanging. The important thing is that OPEC no longer has the ability
to control oil prices.


With 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 ...


5 x) \9 R4 }- ~1 m# f8 _- R6 P, U: \; fThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only