Interesting article about Oil

wanghong

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" W2 F8 r0 l  f' j+ h+ NBelow is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
% A$ H5 s# f- @$ a0 H# J5 jcompanies producing Jet fuels but Biofuels. Also no wonder if some of
" U' P( g! F( K& Lthese oil producer will go bankrupt or out of the business even if
crude prices improves. This implies also to good names such as Shell,
6 A2 T# W& q- D/ [, G' mEXXON, BG, BP, Cheveron ....xyz.. oils
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Recently OPEC reduced crude oil production twice over just a few
) s' r" e& x- R! fmonths. There are three wars going on in Gaza, Iraq and Afghandistan.
& d4 j% j6 R- l- E* x- `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.

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There are several reasons the price of oil is decreasing in the face
( h: T4 v7 i+ Zof so much news. These reasons are:


1. New oil has been found in Canada, Montana, North & South Dakota and
: T5 f" z2 N& H/ hin the ocean near Brazil. Each of these oil fields has more oil than
Arabia.

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$ S- \8 \0 i7 [( x* ^5 Y2. New natural gas has been found in Pennsylvania and West Virginia.
0 @6 K4 H( g/ K6 r5 |0 mThis is the largest find in North America.
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6 D) u4 u# Q  H" A  v5 l8 C% t
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
fuel is being produced from many plants and algae. The production
" O8 u  f0 |! Q1 T  O& k' v* Vpotential 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.


6. There are 99 nuclear reactors in various stages of planning and
4 J" y, T; |5 F0 v9 |construction around the world at this time. Several hundred more are
5 H. B' ]' E$ @' k+ _expected to be built in the future. Much of the energy they produce
% |0 N' E4 o+ v7 A; Mwill replace oil.


+ ^" I; t$ ]& F4 ^$ L/ Q4 F" f; v7. Every company in any form of transportaion business is replacing
) E* k5 I8 W' Y) O6 @6 g6 Colder equipment such as trucks, airplanes, train engines, ships, etc.
with new more fuel efficient equipment. Airlines and railway companies
- ]5 M& x1 @1 W1 g) q& T& vare experiencing 20% to 25% better fuel econony with the new
equipment.


Airlines are flying airplanes with bio-fuel. They are finding the bio-
. V" t/ T7 Y2 m# `9 u2 d* B6 [& Wfuel is cleaner and performs better than jet fuel.
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' G& C7 O% S  A
  e0 Q8 f$ r4 Q9 M1 d1 y0 v  l8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
* C9 Q( p  G; r% S3 Uavailable at very little cost or risk. The gas is displacing crude
oil.
4 }6 H$ a1 a) j' V1 k% R  B
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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
oil wells.
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  G* \# C& W' N3 t- l& i7 m10. Solar, wind and ocean energy is displacing oil as an energy
5 [/ E2 O: `0 I- P: B  I* P7 w+ ssource. Three new wind turbines are being erected every day in the US.

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, V- Y' a) r" d, O, dEach of the above by itself will not make a large difference in the
6 g/ M4 @. S/ j  f4 dprice of crude oil but the sum of all of them together is world
8 L( H9 |& b/ k7 f9 {changing. The important thing is that OPEC no longer has the ability
to control oil prices.

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0 ^" Z8 }2 l1 A* j0 b/ `With the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
; e9 ?( y( A, c0 ?3 ~) S! Y( Jvalue .....
/ O; d! Q  v9 {- F) q" r1 dIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...

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- H) O- |3 N! [4 i1 C6 aThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
- G. E% Q' e  m/ W+ e' _2009 ... FYI-Only