Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
) \6 N6 q, ]! s, L( c+ Ncompanies producing Jet fuels but Biofuels. Also no wonder if some of
% r9 h) u# m- [/ V) O! E  h+ hthese oil producer will go bankrupt or out of the business even if
) o' I8 Z0 d8 V, G7 H5 j5 Q! D* j5 ecrude prices improves. This implies also to good names such as Shell,
! A& ~% J" W6 _7 q% [, U& s' _EXXON, BG, BP, Cheveron ....xyz.. oils

5 @) X5 V* Z# T, [: x+ TRecently OPEC reduced crude oil production twice over just a few
% |% l  _8 J  N8 e+ _+ J3 Lmonths. There are three wars going on in Gaza, Iraq and Afghandistan.
8 a. T& u$ J9 IA year ago these things would have spiked the price of crude oil by at
( k) G; s4 T; I, M% e  Yleast $50.00 per barrel. Today, oil price declined by a record amount.
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There are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:
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: c, r! q8 S6 E, y1 \* \1. New oil has been found in Canada, Montana, North & South Dakota and
1 U1 H+ N7 l0 a) iin the ocean near Brazil. Each of these oil fields has more oil than
( n& {- }$ F& Z, p, h% P" A# \Arabia.

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2. New natural gas has been found in Pennsylvania and West Virginia.
5 n0 n0 `0 K9 bThis is the largest find in North America.
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5 y, e, T8 G) F( K3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.
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3 `+ n$ i  f, G: B4. Production of bio-fuels is beginning to reach critical mass. Bio
: }6 N% u# p' h+ m; bfuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
! M  v# T* _5 |1 W0 W- cracing to produce bio fuels.


5. Virtually every restaurant in the US and all food processing plants
; h& v& f/ r& Z+ r! A; E- Qare now selling their used oil to bio-diesel producers. Every pork,
- R: x! i1 \1 v) {. k& V: N1 Lcattle, turkey and chicken processing plant will soon sell their fat
- J& ^  v* S5 Lto bio-diesel producers. One pork processing plant in Oklahoma is
2 O, P8 @# `) x. Uproducing 30,000 gallons of bio-diesel per day from pork fat.
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: h( S6 ^& T$ r! {2 l$ P6. There are 99 nuclear reactors in various stages of planning and
) c, r9 p) J7 s: {6 V0 Y8 Lconstruction around the world at this time. Several hundred more are
expected to be built in the future. Much of the energy they produce
9 I  Y" I2 e: R4 s" T* S' ]3 swill replace oil.
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/ B' U7 X/ P/ W9 T. Z1 ]7. Every company in any form of transportaion business is replacing
older equipment such as trucks, airplanes, train engines, ships, etc.
6 d/ L6 b& O2 |8 ?with new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
* [% ^) G8 R  B  l; g6 p( Hequipment.
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Airlines are flying airplanes with bio-fuel. They are finding the bio-
7 d" U) F6 \3 Q0 n+ i7 ifuel is cleaner and performs better than jet fuel.

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2 T; `0 S' v  ?; e8. Cities and counties throughout the US are selling the rights to
& Y! Y& u$ Z& B- Zcapture methane gas from landfills. This is a huge source of gas
7 t6 A# a7 I: _  R8 Eavailable at very little cost or risk. The gas is displacing crude
  j+ a; d, V/ [4 |5 Joil.
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  ~' T3 D! P0 }3 V0 ?$ ?% |. E9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
oil wells.


. z) Z4 a" w' V# y10. 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
8 I' Q  a: `9 ?: Gprice 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
: g7 O4 _4 P3 m9 k& T1 \' ^3 P' Jto control oil prices.

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: w- Z* s5 T9 \, vWith the above scenario, I still believe that there are under
: l' j; b8 f6 g! ]2 u3 zperformed OIL companies and probably they are yet to get the justified
value .....
1 C' }: o$ R( V3 g5 B# [0 VIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...

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The above articles are from WSJ .............PUBLISHED ON 9TH JAN
) `* a9 J3 P, G# A) u2009 ... FYI-Only