Interesting article about Oil

wanghong

--------------------------------------------------------------------------------
1 f' L7 q& ~. x0 R& I/ _+ SBelow is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
$ o- b& }0 c" w9 h. y. ecompanies producing Jet fuels but Biofuels. Also no wonder if some of
these oil producer will go bankrupt or out of the business even if
8 C% ~, f7 y+ {% P0 h# ?& jcrude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils
0 y' g+ N/ I6 _' u* [
- k' ^% H3 p+ I5 r. l- K7 ~Recently OPEC reduced crude oil production twice over just a few
( Q' U4 j: B0 d+ z& umonths. There are three wars going on in Gaza, Iraq and Afghandistan.
2 d  n6 Z+ Q: d* j7 B1 t( c6 uA 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.
# G: l- g0 `( G  U- |5 T

There are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:


5 ~+ @3 e5 f0 p! ~# Z+ E9 I1. 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
& J& x( g& j- x* V$ |Arabia.

" b1 `- @4 E: l  ~4 [; D; R
  ~; k4 K9 e# K. o# O2. New natural gas has been found in Pennsylvania and West Virginia.
7 r' T, @6 h+ [This is the largest find in North America.

/ G! a" d1 t: L, D! G
3. New methods of injecting CO2 and surfactants into oil wells is
$ c1 ~/ L7 |+ }# Ubeing used to double their output.


$ x" {+ Y. ?  e1 a: h( `6 q4. Production of bio-fuels is beginning to reach critical mass. Bio
- S* {. T* a' zfuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.

! o9 X* u4 ^% n
5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
! [3 v: o$ ~+ G: C6 }6 Acattle, turkey and chicken processing plant will soon sell their fat
$ Z' V% v7 r& L: ]- pto bio-diesel producers. One pork processing plant in Oklahoma is
% c/ P5 a( g- L2 q& Pproducing 30,000 gallons of bio-diesel per day from pork fat.
- q* O# X0 R/ ]
4 m' x& _4 r1 k# G& ]. ?$ Q4 b: X
0 X0 x! X, D$ W9 P/ c& q' {6. There are 99 nuclear reactors in various stages of planning and
8 m, j, Q. p0 j, j/ X* w4 m4 ?construction around the world at this time. Several hundred more are
( ~& u8 D" Z( J0 Q0 L% ^. gexpected to be built in the future. Much of the energy they produce
will replace oil.


7. Every company in any form of transportaion business is replacing
& d/ c- A4 C# D+ `4 C  n3 Qolder equipment such as trucks, airplanes, train engines, ships, etc.
; i+ s+ Q% D( Y+ L& Y# G% t8 xwith new more fuel efficient equipment. Airlines and railway companies
  y. n# U6 ]; }5 |$ m: t: R7 Aare experiencing 20% to 25% better fuel econony with the new
equipment.

" r- b" x4 L$ c  ]
Airlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.

" m& K8 H9 c, O% d2 M
8. 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.
# @* H; ^. }+ ]! i

) G, F8 B) Q9 d: l5 T9 P; L: X9. Coal is being transformed into a clean burning liquid fuel. The CO2
! O  X$ Z; _# Qproduced as a byproduct is sold to oil companies for injection into
7 C! Y% `3 l' f+ S' b/ X& ioil wells.
& u- @0 V4 n$ W+ e- l, u8 k6 t
* x; B& a, y1 _; ?! {9 I
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.
$ U8 I' F! _4 }5 @, l/ x9 q6 @

" j6 m1 E7 C! A0 U6 u( uEach 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
6 O* G. t8 p4 K& M) O: pchanging. The important thing is that OPEC no longer has the ability
) X  }6 `+ H- Cto control oil prices.


With the above scenario, I still believe that there are under
! N6 M; s, W! v) Zperformed OIL companies and probably they are yet to get the justified
7 a7 P. m/ _# q# [9 Tvalue .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...

' i+ @5 [0 r: O% R" S3 v
& C9 j( _# y  `2 y, _' l' yThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
& h* B/ I4 _3 V! x8 z1 I0 s) V2009 ... FYI-Only