Interesting article about Oil

wanghong

--------------------------------------------------------------------------------
, ], }3 l: O, ]: }8 b# D. D4 KBelow is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
8 P* F( ^( r  @companies producing Jet fuels but Biofuels. Also no wonder if some of
1 M8 u1 Z0 L1 Sthese oil producer will go bankrupt or out of the business even if
crude prices improves. This implies also to good names such as Shell,
& F3 }. k, y. XEXXON, BG, BP, Cheveron ....xyz.. oils
& S% l' W1 U( I4 u" U5 |
Recently OPEC reduced crude oil production twice over just a few
5 \3 E8 i, ^9 A. g2 \* Fmonths. There are three wars going on in Gaza, Iraq and Afghandistan.
; r/ l# C1 ^: v: FA 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.
; J) Y: Z  l  k6 K, O

There are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:
( i2 j  l7 x  L; e* j! g

4 s, P7 a8 f6 z& V! t2 ~1. New oil has been found in Canada, Montana, North & South Dakota and
, A7 O+ q& m  b2 xin the ocean near Brazil. Each of these oil fields has more oil than
2 K$ f, \8 U8 L3 O) S/ uArabia.


% X7 T; Q: r9 R. D2 w& }2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.
* y# e7 \" H, b2 q. @# Z
7 T7 P( `% W. ]3 E' a" ]
1 t3 r. L9 J# V2 L3. New methods of injecting CO2 and surfactants into oil wells is
  v/ }* h/ I: p0 U, ybeing used to double their output.


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
; Z6 n( A6 d1 S7 ]& U" Rracing to produce bio fuels.
  F) u% h0 j' L) C3 i0 K
. [- I7 i3 G( N3 Q
5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
- ?- N- a4 b: n, x6 Zcattle, 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.

! t4 b' }, [! G) H. a' o) D% s* h7 B
6. There are 99 nuclear reactors in various stages of planning and
* y2 I) `* c* l6 J" _. P2 Yconstruction around the world at this time. Several hundred more are
* @/ |# c- A; G1 _% Aexpected to be built in the future. Much of the energy they produce
will replace oil.

/ z$ _8 _; l" E! Q4 S
7. Every company in any form of transportaion business is replacing
older equipment such as trucks, airplanes, train engines, ships, etc.
; }; D- v' X- uwith new more fuel efficient equipment. Airlines and railway companies
! M- B2 Z& n9 H* l8 q* n( m! ^are experiencing 20% to 25% better fuel econony with the new
equipment.

' @/ S# W& Y5 k6 L* Z' l
/ q4 R' o  m* U9 F* T- \' ?. XAirlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.
0 p* n4 c9 r& J. q) h9 e: k5 L
5 y9 N9 J0 a& F4 S1 _! C/ _9 K
8. Cities and counties throughout the US are selling the rights to
2 q9 v8 Q6 u" o$ x' Z# _capture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
6 U8 ]9 B! ^3 V  @! Z1 n5 Coil.
, _1 D$ M7 n9 X* `3 x! N, o
* I' V/ p2 y8 s% d/ A
9. Coal is being transformed into a clean burning liquid fuel. The CO2
. o5 z( k7 P( b' q0 ~: X4 gproduced as a byproduct is sold to oil companies for injection into
7 c3 G4 F0 Z4 C2 H( V2 Qoil wells.


' b( F6 p8 r7 G5 {; @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.

3 f; H4 U5 Q1 N% z' {0 l% |2 g/ k1 a
Each of the above by itself will not make a large difference in the
- X3 R+ p# M8 x0 zprice of crude oil but the sum of all of them together is world
$ b4 ^: ?: p1 j! k2 D: C! V5 Fchanging. The important thing is that OPEC no longer has the ability
to control oil prices.
3 x2 d8 r8 z" M& a0 j
9 C/ o. u; P! A( {: ?" l. t6 r
! v5 u8 c: Y" q. DWith the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
4 d: c  C9 W1 ~! {8 t' bvalue .....
) F6 a8 F+ a# h8 |9 d) TIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
) f) I* Z# d2 I( K

1 l5 o1 m: l! C% cThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only