Interesting article about Oil

wanghong

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% w$ r8 `( [) t. G/ P3 cBelow is an Interesting article I found, which says that.....Do not
1 b  e  K- f% [4 G) T) f  A& ?expect much from Crude Oil producers and future is not with the
companies producing Jet fuels but Biofuels. Also no wonder if some of
/ C6 K  P7 Q" F" x- x  b  Jthese oil producer will go bankrupt or out of the business even if
- c/ U; R. h' {$ Pcrude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils
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9 L) _+ H- _, E7 q$ s& G3 t, \2 uRecently 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
least $50.00 per barrel. Today, oil price declined by a record amount.


There are several reasons the price of oil is decreasing in the face
; j& Q% b2 q. q8 Lof so much news. These reasons are:

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- o! L5 W+ @1 M% I5 x- b; E1. 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
8 j/ r0 r% N/ ^& D8 j, xArabia.
% S6 Z! I" o" b/ Y/ \# P, Z* u

# v& B0 V: x4 U! R9 ~; f6 \( O8 @2. New natural gas has been found in Pennsylvania and West Virginia.
  p& u2 p" u: ~# {1 i9 Y' g4 r4 @This is the largest find in North America.
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3. 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
+ F6 b: X+ o& G* a5 _8 u+ M8 \, Hfuel 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
are now selling their used oil to bio-diesel producers. Every pork,
cattle, turkey and chicken processing plant will soon sell their fat
to 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
3 Z$ z* C8 U* I) D/ ~expected to be built in the future. Much of the energy they produce
0 u0 g+ e) l: o3 R8 A. x0 Xwill replace oil.
0 O* p* a$ g) i1 H" B4 Y

7. 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
4 H; p  z6 @7 y4 j# ?are 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-
$ X" w7 }! A# Z6 Pfuel is cleaner and performs better than jet fuel.
. f) D5 y  P6 C9 `# ~
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5 n% m) W- o$ F4 B3 J8. Cities and counties throughout the US are selling the rights to
! D- l$ T: v8 t# H0 Tcapture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
' `. W1 F! p2 Q/ {* ^; ]oil.
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9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
; S- q8 A" s( x1 l7 l. X$ v( `oil wells.
: k5 R0 |0 l+ V- ^6 A" V9 E

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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" H- _; [7 z! E$ k" c  gEach of the above by itself will not make a large difference in the
9 E' |2 J3 D6 C+ Z$ }. q2 i" B  {price of crude oil but the sum of all of them together is world
: B) Z3 F: o" s- W3 Qchanging. The important thing is that OPEC no longer has the ability
to control oil prices.

1 C) l+ P1 _4 k! R, J
" k9 U, r6 e8 C0 KWith the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
8 ^1 [( Z+ }/ A4 @value .....
' T: v, r) s  IIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...


The above articles are from WSJ .............PUBLISHED ON 9TH JAN
8 I2 V' T  f$ {) w+ _, ^- ^9 E2009 ... FYI-Only