Interesting article about Oil

wanghong

--------------------------------------------------------------------------------
# [% T1 G/ P! EBelow is an Interesting article I found, which says that.....Do not
8 h0 u& G# L  w  w7 m5 D( Zexpect much from Crude Oil producers and future is not with the
8 f$ j9 A# m0 v. ~8 ycompanies producing Jet fuels but Biofuels. Also no wonder if some of
these oil producer will go bankrupt or out of the business even if
3 ~5 p# c! h9 |  ?1 _& tcrude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils
3 c- ]$ y/ g) f
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
least $50.00 per barrel. Today, oil price declined by a record amount.
4 w" e! e4 P% x6 F& K& B2 r

( Z5 A6 Z6 j' X# m9 k0 P2 ]There are several reasons the price of oil is decreasing in the face
, ]# E) f+ w6 L, q' O+ ?of so much news. These reasons are:


8 g2 J3 L- G" e/ k9 _1. 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
Arabia.
5 ]* _. b' g' q4 X, P, N& J! H
* D" s9 [) u; |9 W, V# g
2. New natural gas has been found in Pennsylvania and West Virginia.
" H* D, @, s; o( y6 m- K5 SThis is the largest find in North America.
! X, a' A4 t# j( p: [/ c& O2 q$ `8 W

) m- |8 F& N, K: k5 f- e& V' F3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.
8 Y% h* ~1 q4 }) O
8 m1 U& r. T( S- l. i
4. Production of bio-fuels is beginning to reach critical mass. Bio
fuel is being produced from many plants and algae. The production
1 }* m3 D% |" j2 m% o; R+ Qpotential per acre in some cases is astounding. Many countries are
6 d/ k+ e* N6 A/ e6 c3 |7 @racing to produce bio fuels.

' B% `8 Y0 s( T$ f7 m8 Q9 _
5. Virtually every restaurant in the US and all food processing plants
  j, n. @) o/ V+ fare now selling their used oil to bio-diesel producers. Every pork,
) ^5 H0 V7 E; D( ~cattle, turkey and chicken processing plant will soon sell their fat
6 g/ O7 L; c# |  V4 k* hto bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.
  e/ \, t1 S  M7 b, ]  x3 L
/ k. J. }; w4 s7 ]
6. There are 99 nuclear reactors in various stages of planning and
$ G; _5 Y7 h9 T0 h! H; }, \construction around the world at this time. Several hundred more are
7 C* V* K2 S; R3 b8 V8 iexpected to be built in the future. Much of the energy they produce
8 N* P; f& x% ^  o3 h/ s" jwill replace oil.


7. Every company in any form of transportaion business is replacing
( J$ O; ]$ x- |older equipment such as trucks, airplanes, train engines, ships, etc.
4 r% h5 ]5 g" v' uwith new more fuel efficient equipment. Airlines and railway companies
; i) [( H0 q0 c( Ware experiencing 20% to 25% better fuel econony with the new
- n+ U$ j+ I4 Nequipment.
' A' s9 e; t9 M3 T* u) w' S
) l0 N! b& j/ n1 X
* d- F; ~2 b9 ^  KAirlines are flying airplanes with bio-fuel. They are finding the bio-
+ s7 p' w1 s  u% yfuel is cleaner and performs better than jet fuel.


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
* y) [3 }& k4 hoil.
; q0 r2 B7 s$ w# M+ o  j/ o

9. Coal is being transformed into a clean burning liquid fuel. The CO2
3 u( g4 `+ ?2 d# w3 |$ I+ L9 a8 Xproduced as a byproduct is sold to oil companies for injection into
3 O+ n0 h0 u# I, m+ toil wells.


10. Solar, wind and ocean energy is displacing oil as an energy
+ p; P% C3 _% g8 E1 c# s# u/ Bsource. Three new wind turbines are being erected every day in the US.


. N7 B3 H  `- h3 j; t$ J; m* f6 QEach of the above by itself will not make a large difference in the
6 x8 I! ^7 o7 t/ T% kprice of crude oil but the sum of all of them together is world
& }; r  B  U3 x0 s! J8 F! Kchanging. The important thing is that OPEC no longer has the ability
! }% h+ @5 ]2 ~0 w& _# G1 R( zto control oil prices.


3 w, {4 ?0 \. M8 v$ E7 y1 W8 oWith the above scenario, I still believe that there are under
) v3 Q* h! I7 N9 ]performed OIL companies and probably they are yet to get the justified
value .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...

5 F2 B4 m. C  |. R4 ~: b- w
4 Z9 G$ H$ o% ^The above articles are from WSJ .............PUBLISHED ON 9TH JAN
3 U% C1 A. a# l1 U; g/ [9 g9 h2009 ... FYI-Only