Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
7 M/ F- {# [% N$ E" ?0 f; ~expect much from Crude Oil producers and future is not with the
" `3 }1 R. R0 \companies producing Jet fuels but Biofuels. Also no wonder if some of
7 e; f3 Y9 b+ }  dthese oil producer will go bankrupt or out of the business even if
crude prices improves. This implies also to good names such as Shell,
( \( e  }2 a* t1 K/ N( q! ~EXXON, BG, BP, Cheveron ....xyz.. oils

4 j4 ^, G) n* A2 kRecently OPEC reduced crude oil production twice over just a few
6 \5 G5 R4 i* k2 M4 X# y. o1 Pmonths. 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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There are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:


1. New oil has been found in Canada, Montana, North & South Dakota and
8 H; V* r4 F0 yin 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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  Z; Y% V8 ]2 a# q( X3. New methods of injecting CO2 and surfactants into oil wells is
) Q* {% l; x; O* O+ |1 ^' F; `being used to double their output.

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2 U8 V8 \, x, ~8 r$ ]$ ]1 ]4. Production of bio-fuels is beginning to reach critical mass. Bio
/ S- G( _8 n% D4 nfuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
; Z3 W! _3 N5 t. e( y: gracing to produce bio fuels.
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* ~% _: l6 C9 Z$ J6 p5. 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
* Q9 c0 N' I7 z) D$ f+ H: _' Cto bio-diesel producers. One pork processing plant in Oklahoma is
$ a$ U& u, {) D9 f2 G2 W: uproducing 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 _( U* l! e$ a$ kconstruction around the world at this time. Several hundred more are
1 I% P( y, U& C* N/ l  }expected to be built in the future. Much of the energy they produce
, Y8 S) H6 a4 p7 v" X( c; Swill replace oil.
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7. Every company in any form of transportaion business is replacing
6 l/ w# J% E0 r, E4 n; T9 R5 Tolder equipment such as trucks, airplanes, train engines, ships, etc.
# g) o/ H" q: c4 }9 Z7 [with new more fuel efficient equipment. Airlines and railway companies
, }. n, i" {- Tare experiencing 20% to 25% better fuel econony with the new
/ B; r6 a9 v" a, E5 n. S5 w# Wequipment.

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Airlines are flying airplanes with bio-fuel. They are finding the bio-
4 w% i! K" P) n" L  D1 q. Afuel is cleaner and performs better than jet fuel.
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8. Cities and counties throughout the US are selling the rights to
% d0 ]" p0 f! [- Q( h: C, J- {5 _capture methane gas from landfills. This is a huge source of gas
' \' j/ m/ i$ t% @" I0 oavailable at very little cost or risk. The gas is displacing crude
oil.
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7 A4 b4 P# [! P# N) D6 i1 ], [9. Coal is being transformed into a clean burning liquid fuel. The CO2
; i7 a" L, x3 W6 D& M' f2 N- E2 n, w: ~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
0 b9 y; h: \* @  V* asource. Three new wind turbines are being erected every day in the US.

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, g8 u  c! \; f. d, {8 U+ j+ aEach 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
* L! \; g/ c) h0 V# V- H5 C$ _changing. The important thing is that OPEC no longer has the ability
to control oil prices.
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4 x% a3 i8 p3 n/ r2 S1 M9 UWith the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
value .....
( Z) @, {. b2 u: Y5 K, J8 }- y; xIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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$ T$ _- k7 z; Z+ ~The above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only