Interesting article about Oil

wanghong

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& w/ Q' H2 K+ [3 TBelow is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
; W0 [8 k8 f8 o9 Ycompanies producing Jet fuels but Biofuels. Also no wonder if some of
5 q. _! n5 t  v& X( p, X5 |these oil producer will go bankrupt or out of the business even if
4 ]9 J9 m, h4 N7 q; Y; vcrude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils

% P% S9 j5 _9 H, g$ \: K8 KRecently OPEC reduced crude oil production twice over just a few
6 o, L- l; @  E5 p( Umonths. There are three wars going on in Gaza, Iraq and Afghandistan.
$ q+ @7 B4 P( N0 a3 A- \) y, zA year ago these things would have spiked the price of crude oil by at
( ~5 F( r, u- P5 rleast $50.00 per barrel. Today, oil price declined by a record amount.


! g6 B; g  i; |3 [( SThere are several reasons the price of oil is decreasing in the face
8 a( p% \0 Y8 P4 w: I4 oof so much news. These reasons are:
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1. 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
& [2 X; J$ [# Q, X* e* \( }Arabia.

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1 a1 m) H% C3 R# ]2 C# b2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.


9 [1 G, g2 s/ G) q3. 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
2 a8 T" H& I+ }( }( n4 w* _fuel is being produced from many plants and algae. The production
: ]7 `$ C5 v. Z& Ypotential per acre in some cases is astounding. Many countries are
2 B3 F$ }5 U7 j# y* x* Hracing 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,
cattle, turkey and chicken processing plant will soon sell their fat
0 |5 _! D( W6 u5 U, I, I! I& Yto bio-diesel producers. One pork processing plant in Oklahoma is
2 w% i* f4 Q% U. g( X+ gproducing 30,000 gallons of bio-diesel per day from pork fat.
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7 [2 d8 |! \" }# B' T. w6. There are 99 nuclear reactors in various stages of planning and
7 }6 t/ D& Q& S  S! @+ Hconstruction around the world at this time. Several hundred more are
expected to be built in the future. Much of the energy they produce
9 [$ p' x0 t# |6 gwill replace oil.
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$ c/ Y8 |1 ?/ G$ K# Q$ ~; n7. Every company in any form of transportaion business is replacing
older equipment such as trucks, airplanes, train engines, ships, etc.
with new more fuel efficient equipment. Airlines and railway companies
, U) `- v- r0 q9 R: i1 u3 tare 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-
1 @. z2 W7 f# K7 k" \fuel is cleaner and performs better than jet fuel.

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1 X- g* @# _# i5 g; h: d8. Cities and counties throughout the US are selling the rights to
; y5 Z. X0 H7 H& z. acapture methane gas from landfills. This is a huge source of gas
  }  H; B0 H' Z7 Q' [/ Cavailable 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
% y5 q  u8 E4 E+ }produced as a byproduct is sold to oil companies for injection into
oil wells.
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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
9 D, O4 Q& D, y1 Gprice of crude oil but the sum of all of them together is world
changing. The important thing is that OPEC no longer has the ability
$ n# O' B% o4 z* I3 z$ tto control oil prices.
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9 Q5 L5 g' Y' n4 J; }With the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
4 c, l( ~, A9 q& H; E8 ?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