Interesting article about Oil

wanghong

--------------------------------------------------------------------------------
+ Z1 G; d9 t; YBelow is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
: ]+ }, P# F& z- a  l$ S  d" _companies producing Jet fuels but Biofuels. Also no wonder if some of
0 b. T! X! h9 e' M9 cthese oil producer will go bankrupt or out of the business even if
crude prices improves. This implies also to good names such as Shell,
1 P; R: C; V, y! lEXXON, BG, BP, Cheveron ....xyz.. oils
1 t- M7 \8 [+ F0 Y& e3 f8 H+ Q
* D! ^3 P/ h7 H- n$ H% nRecently OPEC reduced crude oil production twice over just a few
- X. E: n6 V+ ~3 ?3 l/ omonths. 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
2 B( P/ X. c) j% Yof so much news. These reasons are:
. y6 V/ b, u$ a! C
6 P7 ^+ C% A/ G; \$ _2 p
; j/ F7 \, @! s$ q7 M1. New oil has been found in Canada, Montana, North & South Dakota and
/ M( j' X6 O7 O7 S3 Fin the ocean near Brazil. Each of these oil fields has more oil than
Arabia.


8 I( ?$ @5 D+ o, ^; ~2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.
% v* t- Q; {3 m! `

& l- Z2 n1 Z; ?& a( `3. New methods of injecting CO2 and surfactants into oil wells is
# R! D" O" R0 z  ybeing used to double their output.
, J+ `6 E$ K+ Y+ ?9 n7 l
$ [1 h# w* v3 Z
8 x# ~% j) |# b6 T' X2 x4. Production of bio-fuels is beginning to reach critical mass. Bio
6 p) b' T" R8 V5 `" \! O0 Vfuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
* W8 |2 m" b$ E1 @racing to produce bio fuels.
; V# F* K6 L& f8 d1 }
" q. k% H/ R2 |, P4 S# o6 n
+ b; C9 `, g$ @; P- j4 x8 I5. 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.
: [8 n3 x! W& P8 w/ e' j

6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
+ h1 n8 @5 w" r( G% nexpected to be built in the future. Much of the energy they produce
will replace oil.
0 z4 n' c$ Z2 _$ X% E7 [0 A$ [
5 B2 Y( T' j- a6 F3 B: p3 g
$ J" j! e, @# C% z" T. w( g1 o7. Every company in any form of transportaion business is replacing
older equipment such as trucks, airplanes, train engines, ships, etc.
5 W+ j+ J. [* i) p) I! Qwith new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
/ U, x5 O' K( l+ {; K8 c0 g6 D# requipment.
) {7 d( T  R4 `& Q9 \

- |8 Y: t' E3 U* M: ^/ a( T$ T3 \4 OAirlines are flying airplanes with bio-fuel. They are finding the bio-
2 k2 V( w7 a7 @, h* a* S5 Cfuel is cleaner and performs better than jet fuel.


0 z* v& R+ u0 P; b  }6 u& r1 R8. 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
; P; _+ j+ P' E' O- l7 q* noil.
% [( _2 Y, Q, `0 ^  {7 V2 [1 `* _
. t+ z( G7 A* F% `: i
9. Coal is being transformed into a clean burning liquid fuel. The CO2
0 |! o: l, B! W) r9 u% {( eproduced as a byproduct is sold to oil companies for injection into
0 d* @6 `* ~. woil wells.


8 t. a" |9 x& [2 ?10. Solar, wind and ocean energy is displacing oil as an energy
& c, k6 _' k' T! }. Ysource. Three new wind turbines are being erected every day in the US.

3 d1 ]9 |: K1 _& K  a
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
3 w* ]/ h& z2 U; d5 L1 ochanging. The important thing is that OPEC no longer has the ability
. M4 L# q1 z, j0 v% @' Ito control oil prices.

1 b! _/ w# d4 d: |. n
With the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
value .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...

! ~+ ~8 o3 o. Y  i: s
The above articles are from WSJ .............PUBLISHED ON 9TH JAN
# E7 n9 X' H  P/ p/ h* ~2009 ... FYI-Only