Interesting article about Oil

wanghong

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& ~4 }# X, U( O1 ZBelow is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
6 J- u$ U" g. }$ ccompanies producing Jet fuels but Biofuels. Also no wonder if some of
2 a0 J5 M4 Q5 C2 H8 ]5 kthese oil producer will go bankrupt or out of the business even if
# H0 Q( F( N" H& G* u  ~crude prices improves. This implies also to good names such as Shell,
) D7 g/ R  E: m+ d) \EXXON, BG, BP, Cheveron ....xyz.. oils

, K7 v1 }8 p+ X, h9 P% vRecently 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 $50.00 per barrel. Today, oil price declined by a record amount.
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5 l6 I7 S( `% A, Q, e3 V9 v. _There are several reasons the price of oil is decreasing in the face
/ ~5 \9 b/ q1 a" T& lof so much news. These reasons are:
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% w4 R4 D; h# b9 }$ X1. 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
4 e) W; a4 f6 p: e7 r& |Arabia.
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0 \0 l( V3 m7 _8 n# `9 @. A2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.
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6 {# L0 \2 \* l3. New methods of injecting CO2 and surfactants into oil wells is
/ ?6 s( |. y* k2 xbeing used to double their output.

" V6 J5 V2 Z$ G, L
) |1 b1 v' n; e& g) o  ]% f4. Production of bio-fuels is beginning to reach critical mass. Bio
3 |( I, A2 y0 L. j) c' m6 @fuel is being produced from many plants and algae. The production
0 @7 h, C; ]7 R% m8 lpotential per acre in some cases is astounding. Many countries are
2 V# z/ l4 l# Oracing to produce bio fuels.

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5. Virtually every restaurant in the US and all food processing plants
6 M) D6 J. K, Nare now selling their used oil to bio-diesel producers. Every pork,
cattle, turkey and chicken processing plant will soon sell their fat
- S/ f0 E: ]7 c5 Uto bio-diesel producers. One pork processing plant in Oklahoma is
/ @: T; [% r' i: b0 ~$ kproducing 30,000 gallons of bio-diesel per day from pork fat.
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3 T5 M/ b# T- x
( H' J) D- l' T7 W) g4 c0 r6. There are 99 nuclear reactors in various stages of planning and
4 p: N! c* P# ]: E/ o/ @/ fconstruction around the world at this time. Several hundred more are
  t' a& K3 z6 P* ?, S, a' i1 Vexpected to be built in the future. Much of the energy they produce
1 y( t# b, r9 h5 o! k$ a0 \* Wwill replace oil.


1 q. B& r: m& i7. Every company in any form of transportaion business is replacing
older equipment such as trucks, airplanes, train engines, ships, etc.
% z0 g- Y$ E6 X! d( }- Kwith new more fuel efficient equipment. Airlines and railway companies
6 [  h1 K+ y. q' ]6 M  W7 B9 Qare experiencing 20% to 25% better fuel econony with the new
equipment.
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Airlines are flying airplanes with bio-fuel. They are finding the bio-
, L7 k% r# t$ g6 }; afuel is cleaner and performs better than jet fuel.
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8. Cities and counties throughout the US are selling the rights to
% Q, r* ^2 U6 i: d6 ^0 h" icapture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
: c2 p/ z3 A* t7 p. O/ voil.
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' A  H  `( a8 z$ ^( G- a
& q9 G, F+ m; d. g4 ?: F& A9 z9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
- J! A; \: _: O( h' X; D3 R6 w# Goil 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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+ r- U$ `; j. ~' ~# rEach of the above by itself will not make a large difference in the
" v  A4 P3 T4 [1 w/ x( Cprice of crude oil but the sum of all of them together is world
: z' ]2 ]/ W4 H* C4 achanging. The important thing is that OPEC no longer has the ability
to control oil prices.


With the above scenario, I still believe that there are under
- p) ~8 H8 ?. e% ~- z1 cperformed OIL companies and probably they are yet to get the justified
value .....
% a. |8 n% ^; {# W* mIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...


The above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only