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Below is an Interesting article I found, which says that.....Do not / v1 L1 L" i$ G, h$ S
expect much from Crude Oil producers and future is not with the 0 C; w5 ~, F) X
companies producing Jet fuels but Biofuels. Also no wonder if some of
/ j K7 Z g# {3 Y6 n7 q. \! Athese oil producer will go bankrupt or out of the business even if - [4 }+ Z H+ o' a
crude prices improves. This implies also to good names such as Shell,
7 C- G" p4 f V4 I9 cEXXON, BG, BP, Cheveron ....xyz.. oils P* X0 f9 r6 K9 _* U
# c% O g2 y4 MRecently OPEC reduced crude oil production twice over just a few
# g( R2 O5 Y: L9 }( E$ lmonths. There are three wars going on in Gaza, Iraq and Afghandistan.
9 o6 i2 h, y$ s6 e% T9 ^8 ?' rA year ago these things would have spiked the price of crude oil by at
$ L. H0 d* T. V) ^) m& \5 Gleast $50.00 per barrel. Today, oil price declined by a record amount. 4 { f3 I" L8 B a2 I3 l: v5 v5 t
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There are several reasons the price of oil is decreasing in the face
( b% g. L& o' B0 L: }- nof so much news. These reasons are: 0 M4 D* u- P( K# k% D$ ?
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1. New oil has been found in Canada, Montana, North & South Dakota and
1 B! m: N2 X2 ~9 k: F: Q. [! ^ v: Uin the ocean near Brazil. Each of these oil fields has more oil than & d2 c* h, s1 k' @$ H! Y
Arabia.
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2. New natural gas has been found in Pennsylvania and West Virginia.
8 k- X+ C4 C& `) b( j0 \This is the largest find in North America. 2 Z1 a$ A+ T8 C8 S0 v% [0 s, |" a/ V
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3 E2 O. [" W. S0 H7 a3. New methods of injecting CO2 and surfactants into oil wells is
& q( R$ V4 t, kbeing used to double their output. * a" }) S4 ^( j, S
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. i+ M0 {2 z( S. N/ H3 v( \4. Production of bio-fuels is beginning to reach critical mass. Bio
1 F- ~/ ^2 T: O5 F4 \/ E4 Gfuel is being produced from many plants and algae. The production 9 L3 H e+ ~; i0 M+ O& N% ]
potential per acre in some cases is astounding. Many countries are
2 {/ `% y" @$ y7 t! h5 @9 Aracing to produce bio fuels.
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5. Virtually every restaurant in the US and all food processing plants 9 G( }3 _4 v8 o/ l0 W
are now selling their used oil to bio-diesel producers. Every pork, x: r- G) ?0 T! W
cattle, turkey and chicken processing plant will soon sell their fat ( g: e) y; T) m" l* h% |- }' V
to bio-diesel producers. One pork processing plant in Oklahoma is
4 a6 M! E2 q6 A. J1 A, u' d6 {% hproducing 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
& [- g0 a$ A9 q& {7 B1 `% j7 i" N9 s: ]construction around the world at this time. Several hundred more are
" m# _. J4 X! p+ j: f. P& v dexpected to be built in the future. Much of the energy they produce
( L3 |8 q% D% J) v7 ^& Hwill replace oil.
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7. Every company in any form of transportaion business is replacing
) t: J1 V9 L4 a9 ~6 {older equipment such as trucks, airplanes, train engines, ships, etc. # ?+ f2 K; A3 C5 z8 o# y+ _$ q
with new more fuel efficient equipment. Airlines and railway companies
$ s/ G" [7 G( F4 I8 gare experiencing 20% to 25% better fuel econony with the new % h- x# f1 C. _2 T; f
equipment. & j; Q3 F. I. S- U7 K B
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3 p7 \' }# s/ o' C, xAirlines are flying airplanes with bio-fuel. They are finding the bio- " v; o: Z- @! s% @% L
fuel is cleaner and performs better than jet fuel. 0 \! D/ T* x$ ?# q& t. V* u, J
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% }0 \8 ~) |9 J5 H8. Cities and counties throughout the US are selling the rights to $ d' P% |* d/ u! C
capture methane gas from landfills. This is a huge source of gas
0 @+ H1 F% P) M, }3 Iavailable at very little cost or risk. The gas is displacing crude 8 Z2 Y5 R j$ _+ E7 k8 u
oil. ) E4 x+ E# |5 g! E# [
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9. Coal is being transformed into a clean burning liquid fuel. The CO2
+ s: \& O8 \0 t% Eproduced as a byproduct is sold to oil companies for injection into 6 `/ h' M% Q' W/ M% o
oil wells.
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10. Solar, wind and ocean energy is displacing oil as an energy . R) b& r' k3 v8 Z
source. Three new wind turbines are being erected every day in the US. : b R s3 H/ i
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/ m2 x, }6 A; _+ }$ WEach of the above by itself will not make a large difference in the : a) t) r, x8 n$ b/ f4 o
price of crude oil but the sum of all of them together is world 2 d+ @2 A' X8 H/ ?
changing. The important thing is that OPEC no longer has the ability
3 B+ p3 v9 H1 Ato control oil prices.
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( _4 t# ], l5 \# s: \$ NWith the above scenario, I still believe that there are under
8 R3 K; p3 ?' K$ _. o$ e' j7 \- ?performed OIL companies and probably they are yet to get the justified
. w7 B5 r+ i* }* qvalue ..... 0 T' \# n! o' S O) y
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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The above articles are from WSJ .............PUBLISHED ON 9TH JAN
& `/ s: h: s/ X4 \2009 ... FYI-Only |
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