Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
6 p2 y  O' r( J3 Y) }+ yexpect much from Crude Oil producers and future is not with the
companies producing Jet fuels but Biofuels. Also no wonder if some of
& j  d3 R* |( V- ~& n" u7 rthese oil producer will go bankrupt or out of the business even if
" H) o) ^' _( V6 H% }crude prices improves. This implies also to good names such as Shell,
4 J6 @. o7 v3 L( V. h5 L6 A* K: e( hEXXON, BG, BP, Cheveron ....xyz.. oils

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.


There are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:
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1. New oil has been found in Canada, Montana, North & South Dakota and
! C2 r; ?+ y2 f! p. C2 }3 f; rin the ocean near Brazil. Each of these oil fields has more oil than
Arabia.
9 [: d/ G- l. ~7 L8 k2 ]

2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.
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; Z: r& @) H  \' @
- v5 y* f! S" p/ ~( M3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.

0 _0 s5 w8 N" P& ~% L. q3 q
0 R: t. @; U2 l0 m! u0 G4. 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
, x: d( W; i4 W% Wracing to produce bio fuels.

0 ]1 Y. u+ s2 y$ H8 y- X; V
2 S; t1 Y- v+ @! g1 {6 w# n  a5. Virtually every restaurant in the US and all food processing plants
% K( w, p5 b# i7 k9 @7 a1 }are now selling their used oil to bio-diesel producers. Every pork,
4 K% |/ H$ c3 a- p, vcattle, turkey and chicken processing plant will soon sell their fat
1 F7 Y+ p5 `5 b% V  J8 J5 ^to bio-diesel producers. One pork processing plant in Oklahoma is
  Y- ~4 ?% J; Rproducing 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
* E7 I/ I2 g9 C  Rconstruction around the world at this time. Several hundred more are
expected to be built in the future. Much of the energy they produce
& x/ A; ]# ^5 u' Z% n2 w, D9 _will replace oil.
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7. Every company in any form of transportaion business is replacing
9 x4 M9 j# A/ E1 b# _older equipment such as trucks, airplanes, train engines, ships, etc.
" V% `, V. N9 ~3 O! `5 U$ X$ Xwith new more fuel efficient equipment. Airlines and railway companies
/ t( ]& B' H: C5 t8 n* |6 |  P; |are experiencing 20% to 25% better fuel econony with the new
6 C$ o4 W# i/ _, ?6 Fequipment.

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Airlines are flying airplanes with bio-fuel. They are finding the bio-
. \# A; p8 \  Kfuel is cleaner and performs better than jet fuel.
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: Y: c3 G6 X2 S& [2 Z2 n; |
8. Cities and counties throughout the US are selling the rights to
" a! @" i) P  x$ ~capture 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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9. Coal is being transformed into a clean burning liquid fuel. The CO2
. j4 ]" j. [# gproduced as a byproduct is sold to oil companies for injection into
  g3 j9 T7 t/ U( Goil wells.


' l( N# F9 V% ^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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$ g' [' V; e; s" NEach of the above by itself will not make a large difference in the
# }% ]% P7 D6 K. ?- Z0 P1 sprice of crude oil but the sum of all of them together is world
, Z9 E) U7 W/ l2 mchanging. The important thing is that OPEC no longer has the ability
8 B' b; q' k* ]to control oil prices.

* Q- F/ V& c& W! `
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 ...

% H3 a- q9 o' o& o( c
' E+ d9 T! g, l) n0 b2 ^3 }The above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only