Interesting article about Oil

wanghong

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2 s2 ^. r; R$ e3 [: b2 h9 T# g) |Below is an Interesting article I found, which says that.....Do not
3 n, T5 @4 @# Y& R1 Z$ z! O# O: T& Vexpect much from Crude Oil producers and future is not with the
companies producing Jet fuels but Biofuels. Also no wonder if some of
) P$ ?# O) {6 M/ _# T( o- u) bthese oil producer will go bankrupt or out of the business even if
+ ^; g3 n6 }' u, x$ p% {+ mcrude prices improves. This implies also to good names such as Shell,
) K0 t5 ?, q/ U8 HEXXON, BG, BP, Cheveron ....xyz.. oils

# b2 ~: t+ r+ |3 B9 CRecently 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
9 W: s- {3 @9 S& Eleast $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:


1. New oil has been found in Canada, Montana, North & South Dakota and
' S' X2 J. v# b( ]) bin 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.
This is the largest find in North America.


  S! |$ J9 z9 t0 m7 g( _/ `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
fuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
0 x8 ]. f2 c% i; n- F7 {racing to produce bio fuels.
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  @$ D; {6 o4 o+ [5. Virtually every restaurant in the US and all food processing plants
5 b; c0 e/ d' b/ j# Aare now selling their used oil to bio-diesel producers. Every pork,
cattle, turkey and chicken processing plant will soon sell their fat
; g4 d8 _% F: ito 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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6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
0 {- N, b4 f3 X- G3 H" @" i1 Lexpected to be built in the future. Much of the energy they produce
will replace oil.
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+ ^8 I6 w5 d0 y; \
8 t9 u( T' l- C7. Every company in any form of transportaion business is replacing
0 a$ N4 R: L0 m0 [( y7 solder equipment such as trucks, airplanes, train engines, ships, etc.
with new more fuel efficient equipment. Airlines and railway companies
0 w0 F5 e3 n# A0 Y1 ~: [are experiencing 20% to 25% better fuel econony with the new
: z! n% [1 I( e6 [4 bequipment.
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Airlines are flying airplanes with bio-fuel. They are finding the bio-
( U' h! [7 C, V3 C! w! U. nfuel is cleaner and performs better than jet fuel.


, N3 j. Z7 y, ^: Z4 D9 h& N& \( o9 h8. Cities and counties throughout the US are selling the rights to
9 i! [$ c* j4 [9 D$ W' \capture methane gas from landfills. This is a huge source of gas
* ^" Q% x* F; y5 [( navailable at very little cost or risk. The gas is displacing crude
% B  ?5 J: O& P8 N' Z+ `' B8 Noil.

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9. Coal is being transformed into a clean burning liquid fuel. The CO2
+ Y6 U# s( l- x( qproduced as a byproduct is sold to oil companies for injection into
- J3 `  [5 ]6 o( |5 T0 xoil wells.
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10. Solar, wind and ocean energy is displacing oil as an energy
/ w! K. p8 W/ q. `+ Ysource. Three new wind turbines are being erected every day in the US.
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# j; T- h+ m( r$ FEach of the above by itself will not make a large difference in the
# o3 K3 S6 [9 Z5 t  iprice 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
  @! X9 ^6 V# g; ]4 D8 [. bto control oil prices.
! k5 j; L2 K" n4 ]

With the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
) a! [  p1 ^8 V3 \value .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...


; \" c9 _2 }5 j$ S7 b) X/ XThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only