Interesting article about Oil

wanghong

--------------------------------------------------------------------------------
Below is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
+ I, x5 ^' k5 B$ l/ ~8 Tcompanies producing Jet fuels but Biofuels. Also no wonder if some of
8 V" o, m. P  B! [8 p& _these oil producer will go bankrupt or out of the business even if
' X% }( T: {( L8 V) d9 Pcrude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils
8 K* t0 ]* o8 [1 K! H4 c2 E( k  ~
Recently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
2 j3 Q5 _4 y7 X: _) K! T* U+ ]1 o) bA year ago these things would have spiked the price of crude oil by at
  M+ [7 V; `2 p8 C  ]7 Aleast $50.00 per barrel. Today, oil price declined by a record amount.
, c( r4 Z' W! G' a' Y( p

- L- q6 u! X& s5 @% BThere are several reasons the price of oil is decreasing in the face
6 f1 P+ I" Q* Zof so much news. These reasons are:
1 S$ t- _; u$ n: S( i
& A& a% X1 [( ]$ y4 t
1. New oil has been found in Canada, Montana, North & South Dakota and
1 C+ N/ @, ?8 k  ~9 C% M' m- Hin the ocean near Brazil. Each of these oil fields has more oil than
& d4 f# d. x9 U* @( j: g9 kArabia.


2. New natural gas has been found in Pennsylvania and West Virginia.
) h0 c/ t4 I4 m; ?! HThis is the largest find in North America.

% u  X3 w6 c. J/ [, \
3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.

9 J" ?- T4 K3 e/ ^! a8 e
2 N4 Q4 Y, J5 z1 e0 g4. Production of bio-fuels is beginning to reach critical mass. Bio
) X7 {* W! f/ u6 Y& Dfuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
. i) j) ]4 d9 {" Y- Z2 vracing to produce bio fuels.

8 i6 u) g2 L, b/ ~" K) ?% h
5. Virtually every restaurant in the US and all food processing plants
' W4 E1 _' ^! Z% `3 Eare now selling their used oil to bio-diesel producers. Every pork,
cattle, turkey and chicken processing plant will soon sell their fat
' S, w/ R* B: X  I( w. [6 {to bio-diesel producers. One pork processing plant in Oklahoma is
% l  c5 q) {" n  _" Bproducing 30,000 gallons of bio-diesel per day from pork fat.
' u: H# V0 `& M5 M1 h7 K5 e

6. There are 99 nuclear reactors in various stages of planning and
0 L0 O' x: K' ^" E0 d1 L! w8 S& |# Jconstruction around the world at this time. Several hundred more are
1 s6 c8 b/ i* Kexpected to be built in the future. Much of the energy they produce
will replace oil.

5 t: a0 l. @& ^- ?4 I' x* J
7. Every company in any form of transportaion business is replacing
0 M: e: z" \9 w. X. D$ z# nolder equipment such as trucks, airplanes, train engines, ships, etc.
8 t3 o3 d& g* j3 h- L7 K; swith new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
equipment.
) J8 F$ {! c# W  Y; S

& A! u$ [, Q, H- x9 SAirlines are flying airplanes with bio-fuel. They are finding the bio-
( k/ o6 ~/ I/ z# z9 b5 f: f8 d) ifuel is cleaner and performs better than jet fuel.
5 ~$ U; D, K7 N) U& l3 G! X

8. Cities and counties throughout the US are selling the rights to
5 w$ y+ T4 @9 q5 a8 R  Q5 Ocapture methane gas from landfills. This is a huge source of gas
! Q0 c4 E5 E9 ]* c3 g' {1 K; f! pavailable at very little cost or risk. The gas is displacing crude
oil.
2 c4 X, Z4 |. _
9 Y& _3 r2 Q4 M5 O, X
3 R1 v; R) M# E( x, |) V: A9. 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.
! x3 h6 C! Q) \  s2 Z( u8 {% r
9 T: u$ l9 k+ U5 _1 l. K' z
0 i4 n. x% K4 ]% |" {" p- P0 s' V10. Solar, wind and ocean energy is displacing oil as an energy
source. Three new wind turbines are being erected every day in the US.
: J( R3 c% O$ g* U' L; n

+ F, {5 Y# Z% ]0 ?3 v: q4 w5 |Each 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
; p5 s: n2 q6 B8 Schanging. The important thing is that OPEC no longer has the ability
( W- T4 H( D& f/ Bto control oil prices.


With the above scenario, I still believe that there are under
  t$ L8 ?, I, Z; yperformed OIL companies and probably they are yet to get the justified
. b) E# m& m; @7 p% L: dvalue .....
: k1 j1 C  g6 \. n* f/ eIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
  v" N# r9 ^8 Q# H

. m$ N$ Y  g& b1 n2 YThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only