Interesting article about Oil

wanghong

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/ u. X7 J1 v3 U0 X) @Below is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
7 S- T+ I2 y2 @! A; {companies producing Jet fuels but Biofuels. Also no wonder if some of
these oil producer will go bankrupt or out of the business even if
; z6 b' G# {! M# S9 Ycrude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils

6 y) E0 Y8 k  A. Y+ D3 P; }! ]Recently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
8 E; k; J9 K' dA year ago these things would have spiked the price of crude oil by at
: b% C% a" l9 [least $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:


1. 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
Arabia.
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2. New natural gas has been found in Pennsylvania and West Virginia.
# B7 d) ~- y3 S& U  B; p' iThis is the largest find in North America.
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; Q4 x* s) u" |$ Q3. New methods of injecting CO2 and surfactants into oil wells is
4 C( Z6 y' I+ Abeing used to double their output.
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& \4 Z( d8 `- S4. Production of bio-fuels is beginning to reach critical mass. Bio
& o& W8 z  m5 R& Zfuel is being produced from many plants and algae. The production
# }: B' \( [" E# s4 rpotential per acre in some cases is astounding. Many countries are
8 D8 e, \1 _  l+ i. y! K" rracing to produce bio fuels.
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& I# s8 [" |9 G  R. b9 C( N5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
9 _2 Y, i1 p  r& i) ]8 `$ Y6 H- ycattle, turkey and chicken processing plant will soon sell their fat
; v" A( l: }9 I6 r, y8 g3 w: O* M. sto bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.


8 z5 E) v" q1 f+ K6. There are 99 nuclear reactors in various stages of planning and
- L9 {% o0 v5 d/ A' Iconstruction around the world at this time. Several hundred more are
3 t4 u; \$ [( E( r4 lexpected to be built in the future. Much of the energy they produce
8 b( v; K7 V$ t1 q7 ywill replace oil.


/ |, Y; c( t( w; D7. Every company in any form of transportaion business is replacing
# j- ~. a2 ~# \' I% g( Bolder equipment such as trucks, airplanes, train engines, ships, etc.
with new more fuel efficient equipment. Airlines and railway companies
+ F" M- q4 O9 Z5 C; E# b; |are experiencing 20% to 25% better fuel econony with the new
" Z+ M' Q: W& }equipment.

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Airlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.
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7 E* P/ ?: \- A4 \( n! ]8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
  l' u+ b, {+ f) v+ ^. J4 F# Oavailable at very little cost or risk. The gas is displacing crude
! ]. r$ f! o6 |: y+ X6 }5 aoil.
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7 L. L5 z) x' V; U+ U& l9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
/ [4 H+ d$ K) [4 d/ B2 y( Eoil 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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Each of the above by itself will not make a large difference in the
* u" _1 ]$ }. T( Fprice 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
4 o! u5 i* l1 p7 E4 X. Cto control oil prices.

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With the above scenario, I still believe that there are under
( }: l2 s9 x& k2 q2 p' z/ m3 U, ~performed OIL companies and probably they are yet to get the justified
value .....
4 l( y) l# @, A8 PIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...

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The above articles are from WSJ .............PUBLISHED ON 9TH JAN
* i/ ~, G8 C; G% Q$ Z/ z% P. d3 U# [2009 ... FYI-Only