Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
, O, ~' I  @7 Dexpect much from Crude Oil producers and future is not with the
4 f; r0 j# V& y" hcompanies producing Jet fuels but Biofuels. Also no wonder if some of
these oil producer will go bankrupt or out of the business even if
/ k$ ]  [: E/ \# ?: Z3 s; ecrude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils
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- |: s+ W; R1 HRecently 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
( J4 g0 q( ?3 p3 kleast $50.00 per barrel. Today, oil price declined by a record amount.
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  F6 j4 ?2 E: t, u. e. S, s/ k' PThere are several reasons the price of oil is decreasing in the face
( c2 B% E2 o2 _of so much news. These reasons are:
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0 d( W. y1 l; K/ A* w/ v1. 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
0 \/ I8 Q: f- o% ?Arabia.
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2. New natural gas has been found in Pennsylvania and West Virginia.
This 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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1 H" h5 ~4 O% a; Q3 g4. Production of bio-fuels is beginning to reach critical mass. Bio
$ o( x8 N. {; o) a6 A8 Nfuel is being produced from many plants and algae. The production
0 c( _9 G; h( y8 Ppotential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.
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5. 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
* J' {: k! G: R/ Y+ zto bio-diesel producers. One pork processing plant in Oklahoma is
! |% @& r$ {0 Y/ t) Hproducing 30,000 gallons of bio-diesel per day from pork fat.

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7 B- M; p( u8 W  M0 y( y( Y: ^  i7 X6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
, q  p+ u! u" N: {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
9 j9 J9 i  ?2 I# `. Iolder equipment such as trucks, airplanes, train engines, ships, etc.
with new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
3 D0 i9 ]! R4 x; `7 j0 @+ A5 P0 U) nequipment.


Airlines are flying airplanes with bio-fuel. They are finding the bio-
) g$ z: m* \. pfuel is cleaner and performs better than jet fuel.
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0 e! I( @% y( }" ?9 H  f8. Cities and counties throughout the US are selling the rights to
& f# a8 a0 O. v( o8 qcapture methane gas from landfills. This is a huge source of gas
( p4 j) T% q; M. \2 aavailable at very little cost or risk. The gas is displacing crude
: l3 c" `; l# M" A$ T4 g: @oil.

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% E6 h4 d$ [* n- t9. Coal is being transformed into a clean burning liquid fuel. The CO2
: [# r" M8 [6 V! f: n8 d2 ^5 {. Z& Zproduced as a byproduct is sold to oil companies for injection into
oil wells.


/ u4 e/ e2 Q# A2 d9 y' ~3 [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.
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Each of the above by itself will not make a large difference in the
' t$ D  L$ S! V, Z: Cprice 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
to control oil prices.


3 o% P; K% r) Q4 T& z/ `8 ^With the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
4 v6 A9 U) C, z5 W% f, jvalue .....
% ~# y0 I$ c: ZIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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( L' u# v, u4 _8 R. w, cThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only