Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
/ |3 o# N: ^! @8 r1 \- z: ]& T9 j' }expect much from Crude Oil producers and future is not with the
! Y9 y) K( I* g3 [companies producing Jet fuels but Biofuels. Also no wonder if some of
these oil producer will go bankrupt or out of the business even if
# f& H+ z, q3 |$ pcrude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils
4 |; ^' K4 k/ C
Recently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
' b$ K3 c5 H6 P# `  w1 |) JA 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:


1. New oil has been found in Canada, Montana, North & South Dakota and
$ H( @9 ~* e2 w8 T+ Pin the ocean near Brazil. Each of these oil fields has more oil than
! W; |% N, W5 D. p' aArabia.
% I1 @) x4 E7 s4 L5 ]

1 t- g$ [$ @0 K, N% D+ U2. New natural gas has been found in Pennsylvania and West Virginia.
' b6 ~+ {$ K$ Z* A+ q6 ~5 qThis is the largest find in North America.
2 A1 Q. @. ]: @8 b6 a

" `7 r& ^( W7 I  H# b3 M7 E3. New methods of injecting CO2 and surfactants into oil wells is
$ I. O1 d$ ~; tbeing used to double their output.

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4. Production of bio-fuels is beginning to reach critical mass. Bio
- |. `0 c' t) M. u1 l2 Wfuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
& M/ ^0 @+ o( i! Dracing to produce bio fuels.


5. Virtually every restaurant in the US and all food processing plants
) |$ S5 a3 F. s/ |8 U% A# ?are now selling their used oil to bio-diesel producers. Every pork,
# x. f/ _1 U7 g, I# gcattle, turkey and chicken processing plant will soon sell their fat
to bio-diesel producers. One pork processing plant in Oklahoma is
7 y1 X. H8 L7 G9 b  X+ {producing 30,000 gallons of bio-diesel per day from pork fat.

9 D% w4 e3 G; Z' [9 M9 F9 ]4 e
: @, O( {& e9 f( ~, f, P6. There are 99 nuclear reactors in various stages of planning and
9 S6 S' k& T. m# yconstruction around the world at this time. Several hundred more are
5 Q8 [- K# H' q) `expected to be built in the future. Much of the energy they produce
will replace oil.
! x1 c. `9 v& p8 a3 l' H
: J0 Y% `4 @" d8 J. p
/ C. q/ \& L; d( c# [1 q7. Every company in any form of transportaion business is replacing
older equipment such as trucks, airplanes, train engines, ships, etc.
3 t5 ]" o6 i# P% `3 Vwith new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
# p" g/ Y, A! Zequipment.
3 G$ q+ I$ m1 X" W+ Z

Airlines are flying airplanes with bio-fuel. They are finding the bio-
/ ~& R6 C1 z4 \) m  ]fuel is cleaner and performs better than jet fuel.
0 Z0 x0 Y& L4 [, N- g+ s

8. 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
! w  o. e$ d, P* Zoil.

* H9 }+ C7 J8 @' k4 m  s+ _
+ Y( I! ^, S* f( E3 F9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
4 Y- Q4 v0 W4 Z" Woil wells.

8 \+ \, W! f# q- ?+ |6 }* l
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.


1 L& z' |$ Z, Z  j9 tEach of the above by itself will not make a large difference in the
7 j( s5 ?" J1 k0 }" n7 gprice of crude oil but the sum of all of them together is world
8 c  d, u' C) p4 _changing. The important thing is that OPEC no longer has the ability
to control oil prices.
5 W1 ?3 @1 L/ w8 o$ ?9 O

7 {( w5 \, L3 m/ G/ D! K5 |* n% yWith the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
value .....
& ?# n( @4 x$ G6 ]+ E- W9 c" Z2 TIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...

% }/ G! _0 ]7 ]9 b
$ |, d' I. i/ T  C5 m9 [The above articles are from WSJ .............PUBLISHED ON 9TH JAN
3 c( q! H' W8 c5 l: h2009 ... FYI-Only