Interesting article about Oil

wanghong

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  f' n; l; Z* R2 O3 [Below is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
, b* q4 z& ^  P) {2 F+ P- V; `4 L6 Zcompanies producing Jet fuels but Biofuels. Also no wonder if some of
these oil producer will go bankrupt or out of the business even if
5 z! w/ Q8 U# k' \; q' \  Pcrude prices improves. This implies also to good names such as Shell,
+ I4 q8 A& `3 z" L0 M, A$ dEXXON, BG, BP, Cheveron ....xyz.. oils
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Recently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
/ M1 r. _+ S  D) v& G# x. OA year ago these things would have spiked the price of crude oil by at
* ?: @% L  o) Lleast $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:


1. New oil has been found in Canada, Montana, North & South Dakota and
0 t% z9 u3 d" [# S) min the ocean near Brazil. Each of these oil fields has more oil than
Arabia.
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2. New natural gas has been found in Pennsylvania and West Virginia.
3 m/ Y& L; `: a  Z5 i! kThis is the largest find in North America.
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' }1 i3 M6 q, z# x3. 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
fuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
3 ~( |( m9 c. Z9 K! Hracing to produce bio fuels.


4 m! A, R. o$ m5. 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
+ o4 h3 o8 Q: bproducing 30,000 gallons of bio-diesel per day from pork fat.
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1 v* Q. X" u1 r# f6. There are 99 nuclear reactors in various stages of planning and
) d2 ^& H8 i! e# 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
older equipment such as trucks, airplanes, train engines, ships, etc.
with new more fuel efficient equipment. Airlines and railway companies
+ B7 }1 x$ A/ vare experiencing 20% to 25% better fuel econony with the new
6 q% T* o1 [% Z/ [# O# t5 dequipment.


$ A2 y4 q4 P, I+ o3 S6 s! K8 @Airlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.

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" e$ _% c5 P$ y; S8 S# q8. 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.
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9. Coal is being transformed into a clean burning liquid fuel. The CO2
  r( k1 W$ d; mproduced as a byproduct is sold to oil companies for injection into
oil wells.


10. Solar, wind and ocean energy is displacing oil as an energy
4 L: K' d3 D2 Esource. Three new wind turbines are being erected every day in the US.

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1 r" t) U" ~) g1 iEach 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
8 \; l" q* @) a* }changing. The important thing is that OPEC no longer has the ability
8 P" h, `8 ^% nto 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
* o/ y; E5 A* f/ q% V, Wvalue .....
' E& ^/ g  G5 H2 J7 c/ [& y0 eIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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/ i) ~4 l: B8 d5 V/ i% y8 s0 a% lThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only