Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
; R, G% A$ w4 P$ F8 X9 y! n9 Hexpect much from Crude Oil producers and future is not with the
  C& v" L( F  M5 ccompanies producing Jet fuels but Biofuels. Also no wonder if some of
these oil producer will go bankrupt or out of the business even if
& W; t7 r8 j8 n4 p) hcrude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils
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* A, S( Y! O5 iRecently OPEC reduced crude oil production twice over just a few
- i: {3 S4 e: U9 d$ `& N. L. v2 rmonths. 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
1 c3 M" Y5 ]: t; L1 ]least $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
( W8 B3 T1 X& Q: t; _; Y, b+ r% x/ Qof so much news. These reasons are:
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' X* Q7 ~" T* t* L# N4 a% X, q1. New oil has been found in Canada, Montana, North & South Dakota and
# x! j: J" Q. r: k/ S9 L8 jin the ocean near Brazil. Each of these oil fields has more oil than
9 _4 @) w+ {' e7 u8 s0 C0 LArabia.

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2. New natural gas has been found in Pennsylvania and West Virginia.
This 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.


9 P7 O- z8 y3 I. T4. 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
4 b+ W% G6 c- r+ Q3 @- v6 D8 `racing to produce bio fuels.
+ K* A$ X& H6 R4 _

5. Virtually every restaurant in the US and all food processing plants
- f3 D, `# D' U1 g& g( mare now selling their used oil to bio-diesel producers. Every pork,
! ^; h. W( D$ M( Q; T1 I) `cattle, turkey and chicken processing plant will soon sell their fat
8 m0 e( W3 l" c( A) Q1 x' rto bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.


! I; S0 W8 ^9 h6. There are 99 nuclear reactors in various stages of planning and
2 D3 E$ ]% g9 u" xconstruction around the world at this time. Several hundred more are
expected to be built in the future. Much of the energy they produce
" u9 d; [6 m8 G% y; kwill replace oil.

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7. Every company in any form of transportaion business is replacing
older equipment such as trucks, airplanes, train engines, ships, etc.
) v: J0 y4 z; U. W; v& w% ~1 Iwith new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
: O0 @4 a4 g, j; S7 Vequipment.


6 u3 V4 F: N4 J  [8 [& Y  W; kAirlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.


8. Cities and counties throughout the US are selling the rights to
5 u; P# M; h* U+ ~. B/ v" d* ~capture methane gas from landfills. This is a huge source of gas
; ]& H7 q3 Z9 n' C) mavailable at very little cost or risk. The gas is displacing crude
oil.


5 K- P& _4 a% q- m3 Y* z  Z8 w9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
$ m9 D6 l5 ^2 N9 \& P/ joil wells.
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- |7 w0 U% e( r7 Y  H9 X0 G- w# a" s+ |10. 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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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
# \2 l6 U2 }* M* V0 Dchanging. The important thing is that OPEC no longer has the ability
to control oil prices.

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. |) b- v% G& |' X: gWith the above scenario, I still believe that there are under
/ H; l6 K1 b- X; S3 I! [( lperformed OIL companies and probably they are yet to get the justified
$ g- _& M& Z% j# g$ uvalue .....
' F* }+ w, K% q2 Q4 _$ x2 nIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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The above articles are from WSJ .............PUBLISHED ON 9TH JAN
0 ]7 l  Z+ M% [4 ^9 z- v2009 ... FYI-Only