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
2 O; U$ J: I7 X: {" y, D# Vcompanies producing Jet fuels but Biofuels. Also no wonder if some of
these oil producer will go bankrupt or out of the business even if
6 U/ l- \  x+ L2 xcrude prices improves. This implies also to good names such as Shell,
' E# [! B; n5 b) s) jEXXON, BG, BP, Cheveron ....xyz.. oils
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. A7 E6 ]5 C0 {9 b! ^/ o2 KRecently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
/ v) l7 W4 i$ J  |1 Q9 t+ tA year ago these things would have spiked the price of crude oil by at
5 [+ N2 U3 Q6 F0 k& }0 S  h* D+ cleast $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:

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& M$ |7 g, @3 J: k1. 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
' `: ?, J4 w- n& T( t+ j5 SArabia.
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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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5 E0 F+ k, ^/ d) d- y" U" J3. New methods of injecting CO2 and surfactants into oil wells is
. g2 C4 J4 ]% q, ~being used to double their output.

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4. Production of bio-fuels is beginning to reach critical mass. Bio
6 h9 O' m9 \  Cfuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
3 q7 b! w  r) W8 C  Fracing to produce bio fuels.
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/ S0 u& S' J* {3 I& C  [. C) @& z0 g5. Virtually every restaurant in the US and all food processing plants
- d. P4 O6 w( D2 Sare 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
9 M' R* O' H8 Z' [3 iproducing 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
! c8 v. m( ?4 _- X9 Mconstruction 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.
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7. Every company in any form of transportaion business is replacing
5 i3 r* |, |. I' eolder equipment such as trucks, airplanes, train engines, ships, etc.
0 J- v3 y' y2 @6 n5 |9 lwith 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-
2 u# L* g8 w3 e/ a& i9 n" gfuel is cleaner and performs better than jet fuel.
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. f$ r0 }. U6 F5 p# y8. 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
oil.


, S7 t# y2 u1 {5 G0 J9. 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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Each of the above by itself will not make a large difference in the
5 a& G6 Z9 K* k6 ~6 yprice of crude oil but the sum of all of them together is world
0 R0 d& T/ \4 w) Z3 D; Tchanging. The important thing is that OPEC no longer has the ability
- m8 q6 y/ \: v' Lto control oil prices.
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! M/ U- i& _# g: t) m+ H5 pWith the above scenario, I still believe that there are under
9 ]- h# `2 `0 _9 Hperformed OIL companies and probably they are yet to get the justified
" L' C, Q% r( d# Nvalue .....
3 j' k. l5 D) a" J& B0 Z5 hIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...

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+ q! a6 G9 _, ^4 R$ ~The above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only