Interesting article about Oil

wanghong

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( q' x! ]5 l% z% `+ a1 F* ZBelow is an Interesting article I found, which says that.....Do not
2 T2 B/ X6 G. l" X! U3 Rexpect much from Crude Oil producers and future is not with the
companies producing Jet fuels but Biofuels. Also no wonder if some of
* a0 U8 G9 d6 G6 k# ]9 w3 Rthese oil producer will go bankrupt or out of the business even if
( Z+ ?* S- Y; `% c5 e7 h  Kcrude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils

  e$ }, t( u$ {& Q! o) Z, k. P  H, kRecently 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
least $50.00 per barrel. Today, oil price declined by a record amount.
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0 ]# X/ [! _7 R% qThere 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
! A, I! a$ b% r6 g9 H- Ain the ocean near Brazil. Each of these oil fields has more oil than
Arabia.
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4 X0 F" V4 |. i/ }5 u$ F0 o* y2. New natural gas has been found in Pennsylvania and West Virginia.
) X+ m/ t* v1 ?& s% @! HThis is the largest find in North America.
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4 K. O1 c. w+ X0 r" |4 E/ k3. New methods of injecting CO2 and surfactants into oil wells is
* R: N2 X' p% abeing used to double their output.
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6 s9 F" `6 o6 |/ X5 D4. Production of bio-fuels is beginning to reach critical mass. Bio
8 [8 [( {( x+ H0 [* C; V$ sfuel is being produced from many plants and algae. The production
. R$ O2 i7 j5 c  vpotential 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,
( u6 x) j- F* J# o& Wcattle, turkey and chicken processing plant will soon sell their fat
8 S5 C' Y' m' s, d# x# H5 K$ hto bio-diesel producers. One pork processing plant in Oklahoma is
0 t$ y+ r( h: F2 r, ?/ F; xproducing 30,000 gallons of bio-diesel per day from pork fat.
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7 e/ w0 W6 V+ ?0 I" t2 c/ B1 h6. There are 99 nuclear reactors in various stages of planning and
6 x! ^  j- C" _' J+ `construction around the world at this time. Several hundred more are
expected to be built in the future. Much of the energy they produce
0 D& l1 g7 {( r' z4 c: G9 Y  N# b* owill replace oil.

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7. Every company in any form of transportaion business is replacing
* Z7 X! i/ l8 a/ I" Y5 i! M) polder equipment such as trucks, airplanes, train engines, ships, etc.
with new more fuel efficient equipment. Airlines and railway companies
' L# `) ~& M( Y* F: z. ^are experiencing 20% to 25% better fuel econony with the new
1 u2 j, V: V9 l% o+ ^) ~equipment.

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: Q; f  z- O1 Y# E4 @' OAirlines are flying airplanes with bio-fuel. They are finding the bio-
- a1 f. K- B  s0 \3 \1 u) \fuel is cleaner and performs better than jet fuel.
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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
/ O( _' m, Y' _, foil.
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9. Coal is being transformed into a clean burning liquid fuel. The CO2
6 {1 O$ c) t2 I' p, Zproduced as a byproduct is sold to oil companies for injection into
& k: S* x& G+ W$ x3 E/ `0 s( U. Eoil wells.
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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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' A* n7 l( u9 D7 s( `8 \Each of the above by itself will not make a large difference in the
- W% a! D+ X' L" _/ \# ^price 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
4 P8 q% ]( m5 \. ?to control oil prices.


  U) N2 B; ^2 w. r0 t) Y" [With the above scenario, I still believe that there are under
8 y  k. [4 c- ~# C5 l( N* i) Iperformed OIL companies and probably they are yet to get the justified
value .....
# ^) n6 F/ D: g1 t/ pIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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The above articles are from WSJ .............PUBLISHED ON 9TH JAN
  ^; M$ w# E/ ~; t! }1 B2009 ... FYI-Only