Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
7 d! H* g- c( T% rcompanies producing Jet fuels but Biofuels. Also no wonder if some of
( a" U  ?$ ~3 B0 |' c8 q: Qthese oil producer will go bankrupt or out of the business even if
crude prices improves. This implies also to good names such as Shell,
7 M& D  D4 v# z4 e4 v0 Z6 a' b1 N) sEXXON, BG, BP, Cheveron ....xyz.. oils

* v, `  ]. S. s1 l+ q# x' Y) JRecently OPEC reduced crude oil production twice over just a few
- m, B/ X" k9 g- Z5 {months. There are three wars going on in Gaza, Iraq and Afghandistan.
" I0 u* }. Y9 S- j* B5 ~A year ago these things would have spiked the price of crude oil by at
1 z5 e  n% W4 j6 H( [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
of so much news. These reasons are:
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3 ]5 f1 c4 b7 t# [- v! g" G  S1. 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.
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" V# H; l, d9 z+ c; p1 Q4 C2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.
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3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.


4. Production of bio-fuels is beginning to reach critical mass. Bio
fuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
& F& R+ _( }+ @# e$ [) x  T2 J+ oracing to produce bio fuels.


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
+ Z6 z. s  v6 k0 ^& A0 {to bio-diesel producers. One pork processing plant in Oklahoma is
5 m) J% D+ x( O5 Q( Eproducing 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
4 z) M% e' m: }construction around the world at this time. Several hundred more are
expected to be built in the future. Much of the energy they produce
will replace oil.

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7. Every company in any form of transportaion business is replacing
: f" _: h( M# [1 n+ dolder equipment such as trucks, airplanes, train engines, ships, etc.
with new more fuel efficient equipment. Airlines and railway companies
! m6 `) k/ M; @' C% dare experiencing 20% to 25% better fuel econony with the new
# B  l/ l3 n; Uequipment.


1 ^: F2 F3 C( M8 s- ~Airlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.
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4 A  p" [& S! \& G- ~! Y- ?9 w. C8. Cities and counties throughout the US are selling the rights to
  c8 R2 u  P7 N& ^) C, V+ fcapture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
oil.
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. k( W' I$ Y! n0 z9. 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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10. Solar, wind and ocean energy is displacing oil as an energy
source. Three new wind turbines are being erected every day in the US.
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Each of the above by itself will not make a large difference in the
. e0 [& {* O" G9 B/ l6 [price of crude oil but the sum of all of them together is world
2 F% Y3 _+ _6 ^8 vchanging. The important thing is that OPEC no longer has the ability
2 o  ?; a& r: F! }+ `" p, J) h7 R# yto control oil prices.

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With the above scenario, I still believe that there are under
6 Y" @, A3 F; g/ Eperformed OIL companies and probably they are yet to get the justified
  b; t; N7 S5 f) K9 k( Xvalue .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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The above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only