Interesting article about Oil

wanghong

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2 m+ ^/ E. \5 U1 F5 L! A3 m& EBelow 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
6 ]5 g* X( p* u6 Rthese oil producer will go bankrupt or out of the business even if
6 ^% n; }: H* k& L+ |crude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils
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Recently OPEC reduced crude oil production twice over just a few
* i6 y! u5 K7 ~) ?1 v+ Y# rmonths. 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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, m' |( G6 s  kThere are several reasons the price of oil is decreasing in the face
, i3 M+ K+ F; ?) s+ b! @# {of so much news. These reasons are:
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! @2 o8 W  ]- L. E  ?  c5 E1. 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
6 G) @* D  |& T5 h! I/ C3 p. o2 eArabia.


% F0 L" u; H7 X$ o, f4 s2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.
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3. New methods of injecting CO2 and surfactants into oil wells is
/ s, l$ J' `( j( u! c: c5 V, ybeing used to double their output.
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% r) E& g9 d* N0 y6 J4 p4. Production of bio-fuels is beginning to reach critical mass. Bio
fuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
+ C4 |) E0 O  k; ?8 X% [% p+ p; Nracing to produce bio fuels.


7 K; V2 z" Z- l4 X& u8 C' w4 u7 }7 J5. Virtually every restaurant in the US and all food processing plants
# e! G1 y" V, `- A; m7 a) W) Zare now selling their used oil to bio-diesel producers. Every pork,
cattle, turkey and chicken processing plant will soon sell their fat
) `3 A1 L/ t, lto 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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$ t8 P+ l2 Y0 m. T3 @& `; f2 B& d6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
( ^/ `6 o- ?$ l) I  ~% Wexpected to be built in the future. Much of the energy they produce
will replace oil.

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$ U7 f6 N# x4 G5 c) \7. Every company in any form of transportaion business is replacing
; R1 w" ]; Z' ]9 P0 w6 r" e. C3 {+ Wolder 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-
fuel is cleaner and performs better than jet fuel.


! u5 _* y+ D( ]; R% j8. Cities and counties throughout the US are selling the rights to
! W, b# h6 B' V; a, A  w0 ?" Y* Fcapture 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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% @- x: j5 k( {4 [; K* t/ L6 R9. Coal is being transformed into a clean burning liquid fuel. The CO2
6 Q- \! `* l1 {; Q/ l$ ~. S! |produced as a byproduct is sold to oil companies for injection into
oil wells.

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! p% A! d, F( w; G$ ~5 u8 g10. 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
$ m$ A) V& ]3 p$ L2 d$ x6 Aprice of crude oil but the sum of all of them together is world
" O( x2 u# l! b/ Q! e$ K$ G* [# Mchanging. The important thing is that OPEC no longer has the ability
to control oil prices.
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With the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
' Z( E! J$ y: ?value .....
% E% R8 S* X2 M: r+ rIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...

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The above articles are from WSJ .............PUBLISHED ON 9TH JAN
; V4 u$ M+ h- t5 X8 P- E( j! c2009 ... FYI-Only