Interesting article about Oil

wanghong

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+ q- @- e7 S* oBelow is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
, N% I+ z; ]( S2 F" k2 kcompanies producing Jet fuels but Biofuels. Also no wonder if some of
4 H% k! i: \+ H0 _these oil producer will go bankrupt or out of the business even if
4 S0 ~% W9 x( L5 d8 rcrude prices improves. This implies also to good names such as Shell,
+ m$ p: O- v; |5 Y, @7 i# c4 OEXXON, BG, BP, Cheveron ....xyz.. oils

Recently OPEC reduced crude oil production twice over just a few
# Y& J  T; B  J# G! |0 Z# |2 }. kmonths. 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
least $50.00 per barrel. Today, oil price declined by a record amount.
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8 a. Z  O9 }( vThere are several reasons the price of oil is decreasing in the face
; a/ C6 s  m5 m. A! z$ vof so much news. These reasons are:

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% _7 ]0 Y. W6 W8 p1. 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
$ Z4 _) @( e4 }/ @& ?2 k! B' aArabia.
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2. New natural gas has been found in Pennsylvania and West Virginia.
' h. P, B/ l; k7 {$ cThis is the largest find in North America.


# A6 y' z- L8 |0 r+ H! Q3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.
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0 s4 F" T, ?" N& j" R4. Production of bio-fuels is beginning to reach critical mass. Bio
fuel is being produced from many plants and algae. The production
* L. N1 Q# d5 B' Rpotential per acre in some cases is astounding. Many countries are
0 J, J" F. _: _* C5 i" T. m6 _+ I: Kracing to produce bio fuels.
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- m$ ~1 W5 R8 V5. Virtually every restaurant in the US and all food processing plants
: I9 O4 l1 n$ q; d) o' W+ qare now selling their used oil to bio-diesel producers. Every pork,
! |8 j; B' r7 R+ @# H: b3 }3 @  ?cattle, turkey and chicken processing plant will soon sell their fat
6 G9 q1 S! h$ _; yto bio-diesel producers. One pork processing plant in Oklahoma is
4 g3 t7 N+ x$ E( D( i) L/ ?( lproducing 30,000 gallons of bio-diesel per day from pork fat.


6. There are 99 nuclear reactors in various stages of planning and
8 H  P% w" A3 u0 N* M' k" ]: vconstruction around the world at this time. Several hundred more are
expected to be built in the future. Much of the energy they produce
' ]& ^+ F; O) E6 I* jwill replace oil.
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7. Every company in any form of transportaion business is replacing
. h$ O. ^3 T7 Holder equipment such as trucks, airplanes, train engines, ships, etc.
with new more fuel efficient equipment. Airlines and railway companies
/ T( M( x/ W( m& m$ f: a3 ?. X$ ware experiencing 20% to 25% better fuel econony with the new
equipment.

5 [8 u5 ^3 I9 r* Z
# y3 ~: x  D. Z7 o+ w, ^Airlines are flying airplanes with bio-fuel. They are finding the bio-
( F" r7 K) `: V: l/ R: l7 p; `9 ffuel 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" n% M* Q! Xavailable 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
produced as a byproduct is sold to oil companies for injection into
oil wells.


& B/ v( f) ^7 X( B4 D% M10. 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
* C7 C( S. }/ |changing. The important thing is that OPEC no longer has the ability
to control oil prices.
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With the above scenario, I still believe that there are under
6 V. d+ f* D1 I5 \- |performed OIL companies and probably they are yet to get the justified
3 K+ O1 v. g  o4 K& p0 C# @: b$ Kvalue .....
2 ~3 l. A5 v# A& GIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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The above articles are from WSJ .............PUBLISHED ON 9TH JAN
/ Q* s% e+ H8 m1 F" X* |2009 ... FYI-Only