Interesting article about Oil

wanghong

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9 L$ T4 T" U+ X& t7 F% [) B; QBelow is an Interesting article I found, which says that.....Do not
" \4 D" I5 J; D! {0 ]expect much from Crude Oil producers and future is not with the
/ D7 P" b- O& E9 S" z0 \companies producing Jet fuels but Biofuels. Also no wonder if some of
" J# K9 z- n9 {- vthese oil producer will go bankrupt or out of the business even if
8 c9 Y& f* _/ h6 j7 @  ucrude prices improves. This implies also to good names such as Shell,
! O5 R: J, i+ S& g' v# s( a4 X: H+ M/ FEXXON, BG, BP, Cheveron ....xyz.. oils
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Recently OPEC reduced crude oil production twice over just a few
& y2 j0 H+ G3 {) S: R0 Rmonths. There are three wars going on in Gaza, Iraq and Afghandistan.
0 C6 ]% G% L( R- p) b7 J5 ^8 j6 KA 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.


0 g' e, U5 p- u- N4 LThere are several reasons the price of oil is decreasing in the face
/ ~3 V1 M9 X6 \- @% D$ t: F$ vof so much news. These reasons are:
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. N' z3 \5 i3 F( [3 D/ }1. New oil has been found in Canada, Montana, North & South Dakota and
# a0 |7 a" s' fin the ocean near Brazil. Each of these oil fields has more oil than
- A4 |+ w. G; s# F/ n% J, I) o$ }) O1 TArabia.

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) K+ g- h; ]" a+ ~. t$ h8 b7 Z2. New natural gas has been found in Pennsylvania and West Virginia.
6 a' ~4 n6 C& J& yThis is the largest find in North America.
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: D! ~, K. z5 h+ P6 k4 v. K3. 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
' q! s+ M9 D0 cfuel 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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5. Virtually every restaurant in the US and all food processing plants
& @+ f) [6 F7 ^8 ~are now selling their used oil to bio-diesel producers. Every pork,
1 a) M/ ^. C. {/ I0 Zcattle, turkey and chicken processing plant will soon sell their fat
0 N1 d" b& x3 F5 P# w3 hto bio-diesel producers. One pork processing plant in Oklahoma is
( @4 X& Q& T  G1 M6 lproducing 30,000 gallons of bio-diesel per day from pork fat.

9 ]; O. a! Z: K* W. j, ?  A+ Z5 v
5 B' D% k; s; |/ J6. There are 99 nuclear reactors in various stages of planning and
1 a/ v  P1 W4 H1 }9 `, Rconstruction around the world at this time. Several hundred more are
expected to be built in the future. Much of the energy they produce
will replace oil.


' F& |  D' g7 z7. Every company in any form of transportaion business is replacing
" m  g  P9 K4 z" A, X# @older equipment such as trucks, airplanes, train engines, ships, etc.
2 j7 k) u  y, l/ y3 l. E% \8 o% uwith new more fuel efficient equipment. Airlines and railway companies
2 z2 g* t% e5 l* q6 e6 U1 P0 k% Pare experiencing 20% to 25% better fuel econony with the new
equipment.
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6 o. C) R) \& X/ pAirlines are flying airplanes with bio-fuel. They are finding the bio-
9 y! @) P. l) m. ^: ^; rfuel is cleaner and performs better than jet fuel.

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9 Z9 U: Y! u! g( u) M8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
# v) T" g$ Z" y7 Loil.

/ I3 x# y4 r" k. W% |3 s
% N& [& g! E! p! U/ P$ `7 `3 A9. Coal is being transformed into a clean burning liquid fuel. The CO2
8 H0 x* r6 a' O( m& }# N) \produced as a byproduct is sold to oil companies for injection into
3 ~/ e: H# v: s# [oil wells.
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10. Solar, wind and ocean energy is displacing oil as an energy
9 Z, r( v5 @- {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
+ r% g1 S0 C7 {" Dprice of crude oil but the sum of all of them together is world
! R$ h4 `4 n% u( `changing. The important thing is that OPEC no longer has the ability
to control oil prices.


7 }* ?1 O" o4 U' N& PWith the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
value .....
& \+ ?- ~% o; |7 B* w, x# E" [IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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& ?( _+ b) \% b9 I3 cThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only