Interesting article about Oil

wanghong

--------------------------------------------------------------------------------
; x( t* z" j! ?! dBelow is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
: C! r, C$ f' l6 q* `; Dcompanies producing Jet fuels but Biofuels. Also no wonder if some of
- T/ c' E4 F4 q$ [8 \these oil producer will go bankrupt or out of the business even if
) g2 p$ S0 f6 @* |+ qcrude prices improves. This implies also to good names such as Shell,
6 b3 h8 W1 f* p6 Q4 B* DEXXON, BG, BP, Cheveron ....xyz.. oils
& `* k  p( ~6 Z% o6 M7 h7 K
9 O' I5 r# Q5 J- l. V5 t4 z4 k, jRecently 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
1 P1 {8 F) \2 }6 F! R6 Fleast $50.00 per barrel. Today, oil price declined by a record amount.

" X( H/ S2 A" B* i% ~. Q% p2 T" g
There are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:


' E  v+ Z8 Y6 k$ x7 l( Z4 Z9 U/ C1. New oil has been found in Canada, Montana, North & South Dakota and
$ p. _0 F$ a  a. V1 E7 ~& @in the ocean near Brazil. Each of these oil fields has more oil than
- k9 n* O0 o. cArabia.
  L- v/ j8 k  H

/ j( N0 W/ ~8 S2 M# }2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.
% `, A. B1 \3 B0 Z0 z
6 d+ R4 {6 y, r( e4 s
3. New methods of injecting CO2 and surfactants into oil wells is
+ @& Q5 c" _' j( J9 Qbeing used to double their output.
4 Z& c/ c; u5 B4 l) a1 a
% @) M. k( @5 o. ^( w: G0 g
: z9 t/ ]( a  g+ s/ a4. Production of bio-fuels is beginning to reach critical mass. Bio
fuel is being produced from many plants and algae. The production
! A% d+ r$ w2 G2 g$ mpotential per acre in some cases is astounding. Many countries are
+ X$ G2 q! W; Z* F5 R# Fracing to produce bio fuels.


0 S+ u3 P1 a/ O- L9 u; I  V5. 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
8 v  P+ y( I; m3 j  W; d0 Fto bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.
! v7 A. _( k7 E+ {
1 a! G* u$ N8 k5 E" D: I7 j
6. There are 99 nuclear reactors in various stages of planning and
  f0 ]0 W4 i5 J) I6 e" `construction around the world at this time. Several hundred more are
* R( Z7 e& k4 }0 b/ {3 Hexpected to be built in the future. Much of the energy they produce
will replace oil.


- i- e+ b  ^$ }* q3 Z3 y7. Every company in any form of transportaion business is replacing
older equipment such as trucks, airplanes, train engines, ships, etc.
  n5 n! H& y; e8 lwith new more fuel efficient equipment. Airlines and railway companies
1 I" \% c0 X: `# Z7 v+ k9 Oare experiencing 20% to 25% better fuel econony with the new
! D% g7 v, y( P* F  r/ \equipment.


Airlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.
# ?% U/ P2 l+ C9 ~  L" J4 k
8 L. p$ ~& }# \2 W
8. Cities and counties throughout the US are selling the rights to
/ j- |4 u; ^5 Acapture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
oil.
: Q$ D/ p8 d$ n6 D. Y) X1 c4 B0 x1 M
- W7 H. p) x4 M0 O
9. Coal is being transformed into a clean burning liquid fuel. The CO2
( h! N3 t! l+ o! sproduced as a byproduct is sold to oil companies for injection into
oil wells.


6 x! H3 A9 o7 j1 ]10. Solar, wind and ocean energy is displacing oil as an energy
3 s. F5 C# j/ `& a' c+ D- ssource. Three new wind turbines are being erected every day in the US.

! T' o1 k+ Q3 }" _
# w& `/ }" e/ T4 [4 l8 JEach 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
+ X4 D9 ]' }6 V3 ?- b  N" k( _changing. The important thing is that OPEC no longer has the ability
& {, Y3 x! y; }1 ]" K' rto control oil prices.
( B5 |/ G/ I7 A2 }( H* |" a" E
8 I* H/ A/ j/ I/ G  S
With the above scenario, I still believe that there are under
9 H4 ~3 ^/ y% m+ H7 A9 Zperformed OIL companies and probably they are yet to get the justified
value .....
3 Q4 W# r3 g7 j" OIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...

. C$ F) }: a& n: j/ ?2 E
The above articles are from WSJ .............PUBLISHED ON 9TH JAN
! Z* x+ }8 e; r2009 ... FYI-Only