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
& w, P( F/ U  D" m# ucompanies producing Jet fuels but Biofuels. Also no wonder if some of
. q: M7 V5 U0 B5 d! N0 y/ Q* H/ athese oil producer will go bankrupt or out of the business even if
crude prices improves. This implies also to good names such as Shell,
% z* ~6 h5 w% a& k* yEXXON, BG, BP, Cheveron ....xyz.. oils

+ ]+ A, `) J$ Q0 k+ {/ U& j- pRecently OPEC reduced crude oil production twice over just a few
- D$ F6 D" [, t3 b, v7 Z8 m) l4 jmonths. 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 $50.00 per barrel. Today, oil price declined by a record amount.
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There are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:
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% t! d) e2 N1 `, H1. New oil has been found in Canada, Montana, North & South Dakota and
( d$ j( I( w$ B0 T( g' {" Ain the ocean near Brazil. Each of these oil fields has more oil than
: T/ W9 s$ F$ |# P6 F. SArabia.
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2. New natural gas has been found in Pennsylvania and West Virginia.
3 z4 m* e; o2 x# t- N# u! C: iThis is the largest find in North America.
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8 O8 u5 L3 l, [8 ^3. 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
0 r7 U+ j# c5 t/ mfuel is being produced from many plants and algae. The production
/ n7 r" i- `! N9 t/ b! ?/ c4 `: i1 Mpotential per acre in some cases is astounding. Many countries are
, C$ c& \  j" o, g  m9 h' Aracing to produce bio fuels.
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/ ?; H* l# v; X  v6 i6 }7 W- @5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
' m' |' I6 d! X7 hcattle, turkey and chicken processing plant will soon sell their fat
! u. D- K4 R' L0 \4 Kto bio-diesel producers. One pork processing plant in Oklahoma is
- `8 e& U7 P! D9 I6 Wproducing 30,000 gallons of bio-diesel per day from pork fat.
0 a2 P: o" [6 f9 }

6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
$ a. Z( c8 s/ D% wexpected to be built in the future. Much of the energy they produce
will replace oil.

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) e5 o! `3 O; G5 H0 f' W9 o" m/ y7. Every company in any form of transportaion business is replacing
) b$ Z, \2 b& D1 jolder equipment such as trucks, airplanes, train engines, ships, etc.
# Y' a: G& ^; }: t- uwith new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
- E" d  k* o6 xequipment.
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Airlines are flying airplanes with bio-fuel. They are finding the bio-
  d6 J/ c) \+ s+ v* e$ U7 }6 gfuel is cleaner and performs better than jet fuel.

4 [" `$ D, q( W& C4 B6 @
' D# ]2 C- C' q4 ~8. Cities and counties throughout the US are selling the rights to
/ A1 A0 M3 h: |" ~) p# K- W0 Wcapture methane gas from landfills. This is a huge source of gas
* n1 |0 l- i) L) }# }3 f9 N7 D, Lavailable at very little cost or risk. The gas is displacing crude
: ^9 [" s* H  r2 z& g  j9 Roil.

$ H/ V% G8 T( N
9 s# ^: P0 O/ d+ g: q" C9. 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.
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7 @. H# O; r$ A7 h7 e! Q0 C
7 d! h* f# z6 Q1 W10. Solar, wind and ocean energy is displacing oil as an energy
, s- y3 v' Q- G, O  Isource. Three new wind turbines are being erected every day in the US.

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2 i/ }2 j. m& LEach 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
! S- F2 l( z3 }4 i" Dchanging. The important thing is that OPEC no longer has the ability
to control oil prices.


$ ^/ U+ ]# [: s( G; s8 M# tWith the above scenario, I still believe that there are under
' _4 P# ]  r! o5 ?performed OIL companies and probably they are yet to get the justified
+ A: T2 C! A# U7 }3 ivalue .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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4 _4 ]1 G; J- B# R3 D) IThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only