Interesting article about Oil

wanghong

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! X  ?4 C+ o9 PBelow is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
companies producing Jet fuels but Biofuels. Also no wonder if some of
2 j3 z3 v$ U3 e/ s. a4 d: K! w$ Cthese oil producer will go bankrupt or out of the business even if
& K8 J, h1 R. M" V( k1 ?- F6 ecrude prices improves. This implies also to good names such as Shell,
EXXON, 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.

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3 H" G& r4 {1 A6 Y4 `There are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:
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. b7 C, }, W8 m8 A3 L. E2 g1 y5 c" M1. 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
8 \6 J! c! B+ t7 cArabia.
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# r0 S$ Y0 W/ ~; |; n2. New natural gas has been found in Pennsylvania and West Virginia.
( E9 ]( p' \/ i1 V( vThis is the largest find in North America.


" G) L2 W7 X/ Z$ E% v& I1 V3. New methods of injecting CO2 and surfactants into oil wells is
/ j, Q7 J& P. u3 ?8 Nbeing used to double their output.
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4. Production of bio-fuels is beginning to reach critical mass. Bio
% M, f5 \2 h( M" {- E, rfuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
/ I, p; z! E0 J) h5 Sracing to produce bio fuels.
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5. Virtually every restaurant in the US and all food processing plants
  B7 ^  F- o' A. [( y9 sare now selling their used oil to bio-diesel producers. Every pork,
cattle, turkey and chicken processing plant will soon sell their fat
5 Q7 l8 V' k- N% g. U* X$ {' k9 ~to bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.

1 F3 w% X$ i% K. L6 k) \
: N' ?3 o, p; b+ f, T6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
0 P8 i0 j8 y2 P4 @- F" _, texpected to be built in the future. Much of the energy they produce
1 |. J' M' `  fwill replace oil.
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# @) p( ~  X8 d% ~
- P% `8 Z) s6 y3 a7. Every company in any form of transportaion business is replacing
older equipment such as trucks, airplanes, train engines, ships, etc.
with new more fuel efficient equipment. Airlines and railway companies
/ }& C% n8 q0 g) ^5 [1 {are experiencing 20% to 25% better fuel econony with the new
# Y7 E  z( b7 fequipment.
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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.


8. 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
/ @, W( `( K! Q0 S$ b2 U2 g0 o$ voil.
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: g) ~! l6 a) b# W/ ~" _9. Coal is being transformed into a clean burning liquid fuel. The CO2
( z9 }7 ^4 Y! d+ Cproduced as a byproduct is sold to oil companies for injection into
oil wells.

* D2 d: b- C* }2 i. ]- |1 \
: w% x* O* J+ m10. Solar, wind and ocean energy is displacing oil as an energy
source. Three new wind turbines are being erected every day in the US.


9 O7 d( m, L7 n, b' U) s" x; }Each of the above by itself will not make a large difference in the
6 J4 h5 N6 x2 pprice 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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0 c8 ~4 |4 M9 k; PWith the above scenario, I still believe that there are under
( Q& C, s) b: E& Q4 s# K/ U9 |% Eperformed OIL companies and probably they are yet to get the justified
value .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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0 x: {2 d& C( F. E  R5 K4 ZThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only