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
# t5 ^+ h; t9 @  kcompanies producing Jet fuels but Biofuels. Also no wonder if some of
% _0 f- d9 Q- Z  Pthese oil producer will go bankrupt or out of the business even if
crude prices improves. This implies also to good names such as Shell,
3 Z1 i- ^0 P0 G- M( _( _EXXON, BG, BP, Cheveron ....xyz.. oils

; A. Z4 q+ ~# [% U+ @6 [* w$ hRecently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
$ n3 g& V4 l. I( L& |8 hA 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.

: T7 m* d9 N6 C6 I  r  h
There are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:
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8 z' i! X4 n. K- j" M1. New oil has been found in Canada, Montana, North & South Dakota and
' f1 B/ |" j! H/ L6 A+ Tin 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.
: ^# K$ x9 h! h5 _This is the largest find in North America.

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4 X" M: W# C2 L0 n3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.
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4. Production of bio-fuels is beginning to reach critical mass. Bio
# K, K. z# g$ v7 r3 }( Z9 [fuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.

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$ A$ I: Z6 k/ f" t! y5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
cattle, turkey and chicken processing plant will soon sell their fat
- |8 C7 u4 @4 a9 p5 Eto bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.
2 @/ v) [4 [# @- a+ \' a" Q! O

6. There are 99 nuclear reactors in various stages of planning and
) V' ]5 a7 c( W: t" m; k3 F: ~construction around the world at this time. Several hundred more are
expected to be built in the future. Much of the energy they produce
2 _* @9 u3 S0 q1 A& Twill replace oil.
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; R  W9 C3 E3 k0 d% ^0 [  I7. Every company in any form of transportaion business is replacing
older equipment such as trucks, airplanes, train engines, ships, etc.
' f# I4 l' r; ]0 V/ a4 z) o$ wwith 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% `3 `, X+ o2 u2 N5 jfuel is cleaner and performs better than jet fuel.


( d# C1 A; O) z3 Y5 t# T' `8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
( `, o; j. L, Z7 l: uavailable at very little cost or risk. The gas is displacing crude
3 L3 F+ K% c3 C/ b: `8 D3 |' x5 d3 soil.


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.


10. Solar, wind and ocean energy is displacing oil as an energy
( v. Y4 T0 D) }6 P$ Jsource. Three new wind turbines are being erected every day in the US.


4 y$ K9 C6 P2 @6 C- S4 M8 tEach 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
1 k7 R4 u" j) V6 F8 Z) }. J0 E; Vchanging. The important thing is that OPEC no longer has the ability
to control oil prices.

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* ]% I- g- ?; O( B% `7 cWith the above scenario, I still believe that there are under
) l" O; @8 G$ \; |performed OIL companies and probably they are yet to get the justified
8 i6 v1 @/ Q; y0 K: C, Nvalue .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...


. L5 L: N* w" I. FThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
& j" G: e! @7 Y/ h$ \$ j2009 ... FYI-Only