Interesting article about Oil

wanghong

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4 D1 i$ x' D! Q1 @, \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
# x3 _- u8 j6 h/ A. r; p& @8 Wthese oil producer will go bankrupt or out of the business even if
crude prices improves. This implies also to good names such as Shell,
, P( `( F: x0 U; ^EXXON, BG, BP, Cheveron ....xyz.. oils

Recently 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
) I" ~! `/ d# G9 a! q# m# @least $50.00 per barrel. Today, oil price declined by a record amount.
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' g+ Z7 n: w% N' H/ WThere are several reasons the price of oil is decreasing in the face
8 O/ {& C4 u! C( @4 Rof so much news. These reasons are:

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1. New oil has been found in Canada, Montana, North & South Dakota and
/ E' x) V1 t" ^2 u, v2 }+ Xin the ocean near Brazil. Each of these oil fields has more oil than
" i- ]0 ~4 ]& wArabia.

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2. New natural gas has been found in Pennsylvania and West Virginia.
7 s7 y+ N0 y+ S3 Z7 p; y. tThis is the largest find in North America.
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# e0 j2 w  i2 S. H# v( L5 K3. New methods of injecting CO2 and surfactants into oil wells is
# y' ]* L# ^# E' b) @being used to double their output.
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" ?+ u: _  e7 `7 L6 [% d0 X4. Production of bio-fuels is beginning to reach critical mass. Bio
fuel is being produced from many plants and algae. The production
# e/ p( M# ]5 x& zpotential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.
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5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
+ Y7 x! J* [2 z; l: U( h6 D: Rcattle, turkey and chicken processing plant will soon sell their fat
to bio-diesel producers. One pork processing plant in Oklahoma is
- y- j' D' o& J) nproducing 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
6 k( l; i5 ?; T( L$ R" gexpected to be built in the future. Much of the energy they produce
% y* H7 E. E+ N( H9 Q6 R9 rwill replace oil.


7. Every company in any form of transportaion business is replacing
5 s0 l$ r4 Q9 ~" C+ n3 jolder equipment such as trucks, airplanes, train engines, ships, etc.
with new more fuel efficient equipment. Airlines and railway companies
5 ?/ \9 @% ?4 i/ @are experiencing 20% to 25% better fuel econony with the new
equipment.


Airlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.
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) e5 T# G( g4 Z3 ?6 u2 {8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
6 R8 }& ~0 L4 `6 z1 tavailable at very little cost or risk. The gas is displacing crude
$ C1 Z; A" u6 ?oil.

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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
0 N) n/ C9 [$ u5 W! loil wells.

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10. Solar, wind and ocean energy is displacing oil as an energy
$ d* ~. J* M, o: ^- g9 J. L. lsource. Three new wind turbines are being erected every day in the US.
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% w+ ]' q5 u9 `# v. B4 @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
  q0 i8 s9 Q- _. Z" Wchanging. The important thing is that OPEC no longer has the ability
! M0 v# k7 i1 m2 s; Mto control oil prices.

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7 i. K0 A3 a" u7 QWith 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 ...

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The above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only