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
( y' |% l6 t/ ]companies producing Jet fuels but Biofuels. Also no wonder if some of
$ c) A. f. M: K9 I: y2 qthese oil producer will go bankrupt or out of the business even if
# b# s/ [( O- Y! g2 g$ ncrude prices improves. This implies also to good names such as Shell,
( I2 h2 S' }- j7 A/ b9 xEXXON, BG, BP, Cheveron ....xyz.. oils
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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 _# Y# n$ h$ V5 V  lThere are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:

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, ^( b: H$ D& w# z1 [; R8 {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.

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2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.
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9 k* f' u+ ]  S6 Z8 w9 U; C3 l6 e; H3. 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
; e# R  X# v7 k, A" Zfuel is being produced from many plants and algae. The production
2 |6 D. R6 C! O  }) `( t6 Cpotential 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
+ O0 i- S( T5 f8 l- Z# b% l; _4 tproducing 30,000 gallons of bio-diesel per day from pork fat.


) H% }9 ^, H) w0 ?& j/ G6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
: {% h. o1 m* Z2 e6 e) b; Kexpected to be built in the future. Much of the energy they produce
4 U' f9 f% `, B; G/ i5 lwill replace oil.
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7. Every company in any form of transportaion business is replacing
5 n7 O% {% \: n: f! _older equipment such as trucks, airplanes, train engines, ships, etc.
; x0 \  X( ?/ K& h0 ~' M9 Kwith new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
equipment.
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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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7 _, w8 q2 F( _8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
& U3 R" @: m/ A9 [+ Mavailable at very little cost or risk. The gas is displacing crude
oil.
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6 N5 D( F6 G- V7 {5 a8 l7 ~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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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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* {# _" N- j3 H' _1 ]0 {Each of the above by itself will not make a large difference in the
% Z2 @# p+ L+ q0 I0 k" I1 Z* K' sprice of crude oil but the sum of all of them together is world
changing. The important thing is that OPEC no longer has the ability
to control oil prices.
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With the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
value .....
8 k! l$ M! O  [1 Y! E! iIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...

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The above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only