Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
" @( o5 Z& Z; g: cexpect much from Crude Oil producers and future is not with the
! |4 M# S6 s' V9 \% l; i2 ccompanies producing Jet fuels but Biofuels. Also no wonder if some of
: O: h- r, R" J, U3 ethese oil producer will go bankrupt or out of the business even if
+ Y& d' O$ o$ w/ z* a* ~crude prices improves. This implies also to good names such as Shell,
  V( G. \. U3 A9 w3 lEXXON, BG, BP, Cheveron ....xyz.. oils
& {# _. z! ]# h2 X# I, l3 ?
Recently OPEC reduced crude oil production twice over just a few
% g9 v1 M& @  ?! M, X% Smonths. There are three wars going on in Gaza, Iraq and Afghandistan.
: h& y" L$ ]2 sA 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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0 h% X7 @) O; Y2 I1 e. D9 N+ x; d) {There are several reasons the price of oil is decreasing in the face
) u' u" l5 S0 W+ _% [" Lof so much news. These reasons are:

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9 u9 z/ |0 y7 I3 H% H  r# R7 G1. 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.


) z& G# F" g7 H4 v& ?2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.
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/ k6 H% F  z, s" x* c; ^! |$ X3. New methods of injecting CO2 and surfactants into oil wells is
8 i2 @. q* |- c) i0 d/ q* `being used to double their output.
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! X2 E* e4 w' U+ K" F4. Production of bio-fuels is beginning to reach critical mass. Bio
: n+ {* X# v/ g9 F. |  kfuel is being produced from many plants and algae. The production
7 p# D0 N9 e; C/ r+ G: Wpotential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.

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5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
- n0 d% i# ]; O# I( N, Ccattle, 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.
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6. There are 99 nuclear reactors in various stages of planning and
, S6 ~& L  O9 I# @construction around the world at this time. Several hundred more are
expected to be built in the future. Much of the energy they produce
8 x: H" a5 v3 T9 ]0 N$ m. R0 ^; _will replace oil.

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. y+ L6 u4 v9 @1 h4 A( w7. Every company in any form of transportaion business is replacing
5 k' c# F3 i5 B& u( Bolder 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.
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9 C$ v! n3 y% D: D0 C% c  _; X, mAirlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.


  _, J- q( b% `3 w, A+ T" p% B, t8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
oil.
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9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
! `$ I1 C. F+ j* n) z9 ~oil wells.

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* S8 f% Y! Z* N& O$ @/ f10. 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
price 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
+ g' ?, W& U. L+ y( |" Rto control oil prices.

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With the above scenario, I still believe that there are under
* Z% J1 M! O* m6 |performed OIL companies and probably they are yet to get the justified
value .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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5 ^: {9 y9 b( V6 G+ F9 |2 [The above articles are from WSJ .............PUBLISHED ON 9TH JAN
+ ]. o8 \" v" [' y; _! Z/ x" P  C2009 ... FYI-Only