Interesting article about Oil

wanghong

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! R# M9 r6 l; X; r( S* S4 ^9 D4 ~Below is an Interesting article I found, which says that.....Do not
. Y/ f+ @& Z6 a& y/ a' Vexpect much from Crude Oil producers and future is not with the
companies producing Jet fuels but Biofuels. Also no wonder if some of
* X5 w, L9 l' R% ?" Othese oil producer will go bankrupt or out of the business even if
crude prices improves. This implies also to good names such as Shell,
  B  d) ~( |/ e+ Z* b4 u6 \: x( QEXXON, BG, BP, Cheveron ....xyz.. oils
9 V' l7 ]( w& B
8 W, L& }9 e/ t, ?5 W  }Recently OPEC reduced crude oil production twice over just a few
months. 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
0 R. ]% E+ V0 A; s# Mleast $50.00 per barrel. Today, oil price declined by a record amount.
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  {5 b3 a4 T3 D' E" N" Z( J. G1 YThere are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:
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+ ~  {& V% w$ O3 F8 ?* w! I5 F) P" \
8 |# J9 d; {' f1. 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
1 Z  U/ {! W; w8 y8 i4 y* \: AArabia.

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2. New natural gas has been found in Pennsylvania and West Virginia.
& I/ P+ z7 u. f7 j, x; yThis is the largest find in North America.


) z6 g1 N" X* n5 V) T$ ?2 G6 V3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.


8 S, X; g" `  B) x+ g* M4 U, J4. Production of bio-fuels is beginning to reach critical mass. Bio
$ g) e& S3 b  H" Ffuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
# w# S$ p( o6 E0 W% D( x* Lracing to produce bio fuels.
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* F( I7 l7 s7 ~% x- a5. Virtually every restaurant in the US and all food processing plants
& f) U2 g" k* l4 o1 ]! oare now selling their used oil to bio-diesel producers. Every pork,
cattle, turkey and chicken processing plant will soon sell their fat
; g& j7 r% g% t9 g% ~) ~; u6 tto bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.
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6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
+ L* s8 E7 [0 v* K' qexpected to be built in the future. Much of the energy they produce
4 h4 _) _6 |) z4 S: l' M$ Fwill replace oil.
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8 g8 G1 g2 m, @- z- @7. Every company in any form of transportaion business is replacing
7 j6 g6 P% J6 T) O! wolder equipment such as trucks, airplanes, train engines, ships, etc.
) e( }  D. ^! d- f- kwith new more fuel efficient equipment. Airlines and railway companies
% [1 O2 G$ V/ p  s4 J  y+ mare experiencing 20% to 25% better fuel econony with the new
equipment.

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0 f( L- r2 A" ?7 r" B# g/ KAirlines are flying airplanes with bio-fuel. They are finding the bio-
( n* i$ F: `# n2 Gfuel is cleaner and performs better than jet fuel.


+ L7 y/ u: X2 e+ |+ e8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
! V5 b  f  _8 `4 o! B' Q5 yavailable at very little cost or risk. The gas is displacing crude
3 r8 ~7 M) q- W% Eoil.

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8 \  M0 g0 H6 A5 m9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
" Z9 R% D2 K( |/ i. y5 foil 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
' a. k4 M2 ?1 g5 cprice 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
8 P  [3 m& I6 w' Z4 c) xto control oil prices.


With the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
value .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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2 p3 N. |( }# mThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only