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
8 f& _; i# P; jcompanies producing Jet fuels but Biofuels. Also no wonder if some of
$ f  x: c  i' q+ H; @6 c% Y( }" I) O) vthese oil producer will go bankrupt or out of the business even if
+ K. u$ v" [) g6 {  Y8 O: pcrude prices improves. This implies also to good names such as Shell,
  f2 F6 q  H' Z! |EXXON, 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.
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There are several reasons the price of oil is decreasing in the face
5 D. O8 `9 A6 B* ^! hof so much news. These reasons are:
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1. 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
Arabia.
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9 ^" t! Q' S2 [) L0 E6 z% w3 l2. New natural gas has been found in Pennsylvania and West Virginia.
: x! T/ `3 L9 c& uThis is the largest find in North America.

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3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.
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4. Production of bio-fuels is beginning to reach critical mass. Bio
9 s) V, ]" n! w7 o, Q. _) Gfuel is being produced from many plants and algae. The production
4 r" p) J# L8 H" z+ l. Zpotential per acre in some cases is astounding. Many countries are
( \& F$ h' p( [& t7 T+ \; V# Rracing to produce bio fuels.
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# x. I9 Q: S( C5 ?5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
! [# Y$ ]; ^( S* Q# rcattle, turkey and chicken processing plant will soon sell their fat
to bio-diesel producers. One pork processing plant in Oklahoma is
9 r" o* x" s' uproducing 30,000 gallons of bio-diesel per day from pork fat.
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# Z" D. M0 Q6 P6 u6. There are 99 nuclear reactors in various stages of planning and
' D; z" B7 P! T/ g% F4 j2 ]5 h' Oconstruction around the world at this time. Several hundred more are
, q4 H; k) @* S" ]9 b$ t4 {9 Yexpected to be built in the future. Much of the energy they produce
will replace oil.

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# Z) t1 n0 H4 |; u1 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
9 X  F. Y4 i( G3 O! Z* [are experiencing 20% to 25% better fuel econony with the new
* |# ^6 H; E( ~4 Aequipment.
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1 I; y0 l. e0 xAirlines are flying airplanes with bio-fuel. They are finding the bio-
( B3 U  L- s3 [0 \fuel is cleaner and performs better than jet fuel.
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8. Cities and counties throughout the US are selling the rights to
7 N5 ^1 Y4 s0 m4 \capture methane gas from landfills. This is a huge source of gas
$ B- _1 P* [; gavailable 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
9 e. W) A9 b( M! aproduced as a byproduct is sold to oil companies for injection into
oil wells.
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6 z$ ?; f8 l, M5 W' Y3 v. u10. 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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) N' [+ I' b0 T; K8 G- S1 O0 R# uEach of the above by itself will not make a large difference in the
2 m# K* X+ N% k5 mprice of crude oil but the sum of all of them together is world
' ~6 n! ~. I: a- x! w: ^changing. The important thing is that OPEC no longer has the ability
; c$ f* R9 t. I" q4 @to control oil prices.
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With the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
6 S# Y+ J% F9 n$ T' u2 u- H& n9 zvalue .....
0 D! }! j0 I$ ?# M/ C3 z( ~IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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% v# y1 G* S! g7 v9 A& ZThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only