Interesting article about Oil

wanghong

--------------------------------------------------------------------------------
6 F6 |& \  j* D1 L6 _3 jBelow is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
companies producing Jet fuels but Biofuels. Also no wonder if some of
: k* s* ~7 m, m9 p  _  pthese oil producer will go bankrupt or out of the business even if
6 ?6 {/ H* E1 R  ]crude prices improves. This implies also to good names such as Shell,
/ \7 e9 C$ \2 Q! C1 M' z2 o: g' N" rEXXON, BG, BP, Cheveron ....xyz.. oils

Recently 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 f; n6 s& \4 Y4 C" E  jleast $50.00 per barrel. Today, oil price declined by a record amount.
& a9 f$ t% X3 N2 H4 G

3 R3 z! f  U  J2 cThere are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:


0 u6 ]$ f6 o& j& O. p$ r3 N1. 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
  f. y: q; c9 k! {+ q; ~* D/ uArabia.


& C! t% N1 Y0 C5 O, u2. New natural gas has been found in Pennsylvania and West Virginia.
2 a( P( L: c  z! I$ n& r/ @2 X/ j) OThis is the largest find in North America.
. b' U6 B/ H) B5 D0 w  U

3. New methods of injecting CO2 and surfactants into oil wells is
# s& `# u5 k, g7 {% n0 Xbeing used to double their output.

/ U% _/ l) a1 P( \9 v# P- n( C! _
4. Production of bio-fuels is beginning to reach critical mass. Bio
fuel is being produced from many plants and algae. The production
0 Y4 {8 u# N1 l. Ipotential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.
* N% {- n- g3 q0 X) K" ^

3 k8 ?$ f7 G  ?. @: L7 d2 Z+ v5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
2 K# @1 \; O. B( K- i! g- Bcattle, turkey and chicken processing plant will soon sell their fat
5 \7 Q& b: h8 X3 Z( s( _% C) v$ kto bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.
, ?5 _& U/ w& Z0 E3 C

0 i# J1 x7 _0 j* w) z9 U& t: V  P; A6. There are 99 nuclear reactors in various stages of planning and
0 J. w/ W# S+ @. y0 {construction around the world at this time. Several hundred more are
5 ]. h9 D' {+ O: oexpected to be built in the future. Much of the energy they produce
* F7 U+ _2 |- j* wwill replace oil.
& g: `5 l  c: T3 q: H' T+ e$ Q

$ f0 F+ v2 Y/ A4 i5 B7. Every company in any form of transportaion business is replacing
6 {" ^$ F. J! R: c7 ?+ p4 z2 ?, Rolder equipment such as trucks, airplanes, train engines, ships, etc.
with new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
equipment.


Airlines are flying airplanes with bio-fuel. They are finding the bio-
' {; g' ~4 C: Y& |% @: I8 u3 o$ dfuel is cleaner and performs better than jet fuel.


; O4 N, f  r5 Y/ g  F8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
) `. |+ G2 `, havailable at very little cost or risk. The gas is displacing crude
$ i6 S/ i1 b, T: m. a3 Doil.
" {% X2 }: `/ B+ l
+ X/ m/ T+ e8 E( B
5 O: O7 Z, f! j& F. @, s2 n- w( c4 b9. Coal is being transformed into a clean burning liquid fuel. The CO2
( Z; R! F* i) I( M/ G, V9 \produced as a byproduct is sold to oil companies for injection into
3 r0 \$ U* {" k+ h& Joil wells.

0 h/ r* l' ~# _5 X# h
: J( U- @9 C. e10. Solar, wind and ocean energy is displacing oil as an energy
source. Three new wind turbines are being erected every day in the US.

% J2 M9 S+ L( z
Each 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
: X. U3 Z. ^. `5 U- r3 hchanging. The important thing is that OPEC no longer has the ability
/ E- g) R, P1 z' j1 l$ uto control oil prices.
& V7 k% E$ g$ H
) y7 |, @. a: f
With the above scenario, I still believe that there are under
* ~1 o8 L# @* J7 i2 B: |& Operformed OIL companies and probably they are yet to get the justified
value .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...


The above articles are from WSJ .............PUBLISHED ON 9TH JAN
5 z/ I' ]* G1 N, G2009 ... FYI-Only