Interesting article about Oil

wanghong

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! P* C: p# y  r% D/ nBelow 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
& A! P, @; M* L& _! ?; a8 y: Athese oil producer will go bankrupt or out of the business even if
% I8 N0 g, m& n$ K0 m3 t. [crude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils
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, u4 Z9 B/ v$ x, fRecently 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
7 ^# G, B) x3 e& j8 Rleast $50.00 per barrel. Today, oil price declined by a record amount.


% _7 [2 h) \, K( u$ UThere are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:
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1. New oil has been found in Canada, Montana, North & South Dakota and
' |6 @1 Y* O/ q% ~in the ocean near Brazil. Each of these oil fields has more oil than
7 O( [: c: ~4 N6 n1 [6 V/ HArabia.
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. y7 N/ m  }* ~! W2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.

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  ?# m' p# \0 x( Z6 g3. New methods of injecting CO2 and surfactants into oil wells is
/ U3 o/ G# R2 p8 }; ^" k" Sbeing used to double their output.
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6 A1 r7 D5 l# r* p$ X# S4 D% {4. Production of bio-fuels is beginning to reach critical mass. Bio
) `- U( P4 z/ ~! Q! tfuel is being produced from many plants and algae. The production
, y7 D; O1 J9 x9 Bpotential per acre in some cases is astounding. Many countries are
6 e( u8 x: r; o3 i% tracing to produce bio fuels.
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9 N4 _$ K& m' E! L; v& z* v/ ^3 A5. 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
to bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.


/ X0 Q3 s0 B/ G! P( f* Z/ f1 e5 x6. There are 99 nuclear reactors in various stages of planning and
9 ]; z3 R0 M3 U3 |construction around the world at this time. Several hundred more are
expected to be built in the future. Much of the energy they produce
' q$ ?8 X* N8 z2 @  u( Qwill replace oil.
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7. Every company in any form of transportaion business is replacing
older equipment such as trucks, airplanes, train engines, ships, etc.
" s2 ~+ h& c" A5 p  |! b. bwith new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
9 Z# x6 @# X1 x" Xequipment.
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Airlines are flying airplanes with bio-fuel. They are finding the bio-
  I! y2 ~! x% R& b# d2 rfuel is cleaner and performs better than jet fuel.
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4 m. @+ W; y1 {1 h; l  |8. Cities and counties throughout the US are selling the rights to
# N6 ?* y5 _1 Y3 k) B6 ~8 C3 Mcapture methane gas from landfills. This is a huge source of gas
9 K  E7 u8 V2 c! y9 aavailable at very little cost or risk. The gas is displacing crude
oil.
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- x! L2 x- \/ `: f$ g0 N  M9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
( P) K) [2 f# I% B" e' b' aoil wells.


# W# q+ M5 P6 m) S3 y! s10. Solar, wind and ocean energy is displacing oil as an energy
: m' t( a# c5 w) Jsource. Three new wind turbines are being erected every day in the US.
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+ h) I# a+ o, k% QEach of the above by itself will not make a large difference in the
6 p% f9 q# }( A) K& F/ b, J0 }! Y9 w2 Yprice of crude oil but the sum of all of them together is world
! H8 D; r5 s6 y1 mchanging. The important thing is that OPEC no longer has the ability
to control oil prices.


2 W3 ?* X6 v( q: D. p3 Z9 |; nWith the above scenario, I still believe that there are under
) L( ~5 X) _6 R; Cperformed OIL companies and probably they are yet to get the justified
value .....
, `3 R- q4 Y+ i* `1 c; c8 S' @1 ?2 WIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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The above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only