Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
companies producing Jet fuels but Biofuels. Also no wonder if some of
$ F5 {& ?. g9 N+ Uthese oil producer will go bankrupt or out of the business even if
crude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils
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Recently OPEC reduced crude oil production twice over just a few
2 |5 m1 Q6 _  u! p* \4 {# g6 }months. There are three wars going on in Gaza, Iraq and Afghandistan.
, U$ L8 x2 P  C7 b; ^A year ago these things would have spiked the price of crude oil by at
, o' o# C6 A8 r: Wleast $50.00 per barrel. Today, oil price declined by a record amount.
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( B3 {" f# B/ e9 {! wThere are several reasons the price of oil is decreasing in the face
7 ?0 F, G' G. u" J& y8 ?; Rof so much news. These reasons are:


1. New oil has been found in Canada, Montana, North & South Dakota and
8 P9 w' V. L4 tin the ocean near Brazil. Each of these oil fields has more oil than
1 z8 x/ G$ S& dArabia.


2. New natural gas has been found in Pennsylvania and West Virginia.
3 U# O# s0 F0 N1 H" n$ ?This is the largest find in North America.


3. New methods of injecting CO2 and surfactants into oil wells is
4 o0 O' j- R) F% }3 l/ cbeing used to double their output.

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5 f7 t4 v/ V% d8 b  F# H: j2 g4. Production of bio-fuels is beginning to reach critical mass. Bio
4 Z% T' K- v$ _6 T0 Y* Afuel is being produced from many plants and algae. The production
( `4 Z! b3 g+ r* Z# A) Cpotential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.

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. l; e' S7 ~) H0 `1 d- c5. Virtually every restaurant in the US and all food processing plants
( I1 o9 L4 g4 \6 vare now selling their used oil to bio-diesel producers. Every pork,
% z$ o3 C2 k, S  G8 y! |3 W0 bcattle, 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.

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4 r4 G! w( L) i6. There are 99 nuclear reactors in various stages of planning and
! E; u# m% D1 r# U" e+ E, B+ g" n" _construction 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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! X  {& c3 [5 L8 `9 m0 h
" n2 H: i/ H7 ~- ^. }& z7. Every company in any form of transportaion business is replacing
. T& v/ d& \, D0 L  }$ molder equipment such as trucks, airplanes, train engines, ships, etc.
* z# ?  `7 f, rwith 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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Airlines are flying airplanes with bio-fuel. They are finding the bio-
+ [; a, v7 ~% x5 N& Kfuel is cleaner and performs better than jet fuel.
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8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
+ V' Y! k/ Z% pavailable at very little cost or risk. The gas is displacing crude
oil.

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9. Coal is being transformed into a clean burning liquid fuel. The CO2
8 }: d: y- h7 Z. \, g8 V5 |produced as a byproduct is sold to oil companies for injection into
oil wells.
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4 l& C7 ^+ ?& V* S: m5 M' N4 F10. 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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4 V) q7 N) B+ T: q- n! bEach of the above by itself will not make a large difference in the
) H: A# D0 k) E/ \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
% Y& o7 R. I3 J) n5 dto control oil prices.
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With the above scenario, I still believe that there are under
3 ]5 q" o* u* M  @; g6 v/ W, Wperformed OIL companies and probably they are yet to get the justified
. d2 p4 F: x- i# O- O6 x" K/ v& {4 Avalue .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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% P$ `( \: t& C0 l5 ?& J" T  XThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
5 ]8 j: J& k' t4 O% w' |0 f. h: V2009 ... FYI-Only