Interesting article about Oil

wanghong

--------------------------------------------------------------------------------
" u$ o# Z0 ~% E0 @! O( IBelow 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
  T5 s; o- u4 c$ ~0 |# ]these oil producer will go bankrupt or out of the business even if
0 N& O: K7 v$ E0 R8 I) ]9 Rcrude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils
! Q$ f' s$ g* M. x
Recently OPEC reduced crude oil production twice over just a few
4 E# {; p) @/ }! amonths. 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
% J6 T) m- D9 a- }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:
) c, h) Z$ [& \* v4 t, m' p* ]' O, c
' [1 D, r. v& i: i
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
) P! M# Q7 n6 i2 x, i! CArabia.
, ~* J$ t5 l& l' r- z
$ ^8 o5 ?- R! e2 s( K9 v
2. New natural gas has been found in Pennsylvania and West Virginia.
6 Z# D% Z3 r/ F# j% pThis is the largest find in North America.

% l3 J) f( L1 `) n
3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.
8 v! \1 I/ a" p; O) H
9 \5 X+ W" n  h/ @! O
4. Production of bio-fuels is beginning to reach critical mass. Bio
. K+ ]( m% S8 wfuel is being produced from many plants and algae. The production
  c! t4 U' ]  ?3 i- c9 w2 Gpotential per acre in some cases is astounding. Many countries are
, J( L# f; g5 T& b4 O. \9 `7 dracing to produce bio fuels.
# w# r0 g' G' b! Z- }
; s' D$ w( ^" h% R3 s# R
5. Virtually every restaurant in the US and all food processing plants
* T/ E! b3 F  p5 [are 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
producing 30,000 gallons of bio-diesel per day from pork fat.
% G: s9 r5 c$ S) W

; A' K* E- s6 w0 L8 r8 k9 D. D6. There are 99 nuclear reactors in various stages of planning and
/ R3 @2 I( [2 u4 Z. u' xconstruction 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.

" n7 J1 Y1 c* h
7 B1 Q# H9 L3 E# Z7. Every company in any form of transportaion business is replacing
4 j4 g% C7 H( q% U3 L- yolder equipment such as trucks, airplanes, train engines, ships, etc.
with new more fuel efficient equipment. Airlines and railway companies
/ _8 O' m/ R+ r) z1 t4 s, Pare experiencing 20% to 25% better fuel econony with the new
8 A  E1 N. Y9 I7 N2 [equipment.
( C$ B, D. V' A1 `' _+ U1 [. F

2 r5 V5 X2 A# W: H! d( K" fAirlines 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
. F- r" b  W& o! @, n6 jcapture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
/ B, }3 z4 V! O5 goil.


9. 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.
" X7 \* A8 t1 W) B

10. Solar, wind and ocean energy is displacing oil as an energy
# f1 u  c  p6 \2 Q7 A( Rsource. Three new wind turbines are being erected every day in the US.


Each of the above by itself will not make a large difference in the
6 N# Q1 W* k- aprice 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
2 o& ^5 R( C( C/ G1 G3 ?/ D9 B2 oto control oil prices.
" ]* c5 P1 b& I0 y0 A& H
3 i4 n% E( M8 A4 q7 t# I  W# n
With the above scenario, I still believe that there are under
( a& V' f% \5 w- G8 K3 \, w% o# Eperformed OIL companies and probably they are yet to get the justified
value .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...

( L% u- V. {% k; [
! ]7 z  p* [7 C+ z, i. E9 T( mThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only