Interesting article about Oil

wanghong

--------------------------------------------------------------------------------
0 a6 ?! M! L& e, J8 `1 nBelow is an Interesting article I found, which says that.....Do not
, }+ s2 j6 z" F- Y! \% k4 gexpect much from Crude Oil producers and future is not with the
  W8 B6 h( a' A& @' X& ncompanies producing Jet fuels but Biofuels. Also no wonder if some of
these oil producer will go bankrupt or out of the business even if
2 n! f' `% W/ s4 |' ]2 T2 ?crude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils
6 ~( R" s1 P' j3 A/ ~0 [# t
Recently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
1 C7 ^) V. l$ D' jA 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.


; _6 N  Y  z# PThere are several reasons the price of oil is decreasing in the face
8 y( L- I$ T2 \: a# Fof so much news. These reasons are:
5 w& a, d' z. v7 b" U* t
, ^1 a+ y5 x" F- I% Q
1. New oil has been found in Canada, Montana, North & South Dakota and
# X/ d9 `9 O6 h& |+ t. Gin the ocean near Brazil. Each of these oil fields has more oil than
0 y6 K7 }* G* e/ ZArabia.
) u& e. H1 ?" ~+ \. ]- Q
1 b# N. l/ b- t( L* @( M. J
* q8 F8 A  @5 |3 ^3 u6 G, {1 Q2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.
9 G. C3 Q' [' j/ Y: M0 w+ a

3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.
" x6 {  s, \) |( }

4. Production of bio-fuels is beginning to reach critical mass. Bio
& R% N: H9 @0 k$ `( H2 @0 Wfuel is being produced from many plants and algae. The production
; v1 A9 P* L. l, ^( Opotential per acre in some cases is astounding. Many countries are
: I, Y/ j5 D& S7 u) X1 `  Yracing to produce bio fuels.


  n9 j0 ~* w, Y! M, r! m1 r4 Z5. Virtually every restaurant in the US and all food processing plants
+ a1 s$ |2 J. ~% ]! uare now selling their used oil to bio-diesel producers. Every pork,
; O$ V" b3 Y5 ]9 `; \cattle, turkey and chicken processing plant will soon sell their fat
to bio-diesel producers. One pork processing plant in Oklahoma is
$ A' N2 m' M* P( S$ w" dproducing 30,000 gallons of bio-diesel per day from pork fat.

( L* @6 |5 b# j. q% U+ f! m
/ d0 y5 _2 o* {* D6. There are 99 nuclear reactors in various stages of planning and
+ Y- t6 r, J, e) {3 c2 ]7 Dconstruction 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.
, D6 {& u0 ^. V% c
4 n  Z5 M6 J* o# A3 J. z
7. Every company in any form of transportaion business is replacing
3 |9 r% p! q/ t* l, Molder equipment such as trucks, airplanes, train engines, ships, etc.
* ~; A* s& [' I* ^. |with new more fuel efficient equipment. Airlines and railway companies
7 ?  D! E7 N- f+ h, L) [are experiencing 20% to 25% better fuel econony with the new
/ z% {/ h. _6 F6 o0 @; Tequipment.


Airlines are flying airplanes with bio-fuel. They are finding the bio-
1 \& Y& g$ X) e9 K8 afuel is cleaner and performs better than jet fuel.


9 S, Y7 H/ m& Q& U: h+ ?8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
) \+ x- I0 k  a- j* c: davailable at very little cost or risk. The gas is displacing crude
oil.
3 K- q7 J' x8 T* ]+ i. ]. {7 B" ]

9. Coal is being transformed into a clean burning liquid fuel. The CO2
1 U' B1 c: \5 Cproduced as a byproduct is sold to oil companies for injection into
* A1 G1 G6 k0 Toil wells.


2 M/ |8 y" L7 k1 {; `6 o- B. l10. Solar, wind and ocean energy is displacing oil as an energy
6 x& M7 i! t0 Q. Rsource. Three new wind turbines are being erected every day in the US.


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
- \8 z7 n. R8 ^) \changing. The important thing is that OPEC no longer has the ability
1 B$ m0 [& o: d/ Vto control oil prices.

/ J2 g0 a8 Y: e2 q. T
2 W2 s; C2 r# ~/ X- P& ^With the above scenario, I still believe that there are under
. F7 ^7 S! B6 X& w" E& J9 kperformed OIL companies and probably they are yet to get the justified
  ?" \! F3 R9 Xvalue .....
$ B2 C4 `: V9 k' T+ Y2 bIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
( M) R+ N1 K" E

, u! |  L8 j4 Q5 m& u  VThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
" h& a2 `, p; A2009 ... FYI-Only