Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
& X% q8 {  |! J* Dexpect much from Crude Oil producers and future is not with the
7 |! c# r$ C. ]! m* V, r4 ecompanies producing Jet fuels but Biofuels. Also no wonder if some of
1 D. b( D, T. H) Wthese oil producer will go bankrupt or out of the business even if
9 E& F% p* ^/ T1 X! h0 ycrude prices improves. This implies also to good names such as Shell,
  e" f) ^& R0 {EXXON, 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
$ ~' g; W* L' b0 S% S+ b7 bleast $50.00 per barrel. Today, oil price declined by a record amount.
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/ P3 ^7 V3 C; M- a# S8 ^. MThere are several reasons the price of oil is decreasing in the face
8 P- T7 g5 V8 n  c. |* Aof so much news. These reasons are:
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1. New oil has been found in Canada, Montana, North & South Dakota and
' V- c  H% N% r8 c0 ]+ |in the ocean near Brazil. Each of these oil fields has more oil than
7 q0 [$ _, L' |$ b$ N8 s( eArabia.
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2. 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
being used to double their output.
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4 J6 |/ u8 ]! @) \4. Production of bio-fuels is beginning to reach critical mass. Bio
fuel is being produced from many plants and algae. The production
; m" i. B5 g- m4 G* spotential per acre in some cases is astounding. Many countries are
2 v; y, |; ~, M1 F2 Uracing to produce bio fuels.


$ V2 U3 V+ m" c4 W# m5. Virtually every restaurant in the US and all food processing plants
( n" H/ m) ~8 D( z1 o5 y7 Zare now selling their used oil to bio-diesel producers. Every pork,
cattle, 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 ~' }% D4 w- v) E6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
5 H! D$ J% p2 p* T  |expected to be built in the future. Much of the energy they produce
& n% [3 l* R" L* V/ xwill replace oil.


7. Every company in any form of transportaion business is replacing
7 Y) O+ O* D6 d0 S/ v4 J* Molder equipment such as trucks, airplanes, train engines, ships, etc.
with new more fuel efficient equipment. Airlines and railway companies
+ p; A# q" n7 \8 G1 M+ b$ X% ware 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-
fuel is cleaner and performs better than jet fuel.
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8. Cities and counties throughout the US are selling the rights to
; _% t8 h7 O% S$ Xcapture methane gas from landfills. This is a huge source of gas
* ]1 w3 S7 X& i% n5 ]' U) c6 T2 W/ \available at very little cost or risk. The gas is displacing crude
oil.
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5 |" T* k8 k# X0 ^. x9. Coal is being transformed into a clean burning liquid fuel. The CO2
1 `0 I7 `2 |: B- k) I! Aproduced as a byproduct is sold to oil companies for injection into
oil wells.

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10. Solar, wind and ocean energy is displacing oil as an energy
1 y& E6 p+ J+ O6 c: |source. Three new wind turbines are being erected every day in the US.

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& u6 r$ n' C: x4 v' tEach 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
+ e+ F1 ?. Y: e5 ?8 l  l+ {- Schanging. The important thing is that OPEC no longer has the ability
to control oil prices.


+ V$ l% A! v+ A  U4 {With the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
0 P4 T+ |* B3 G8 cvalue .....
# ]( i. O4 x& }/ VIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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  U# F( ~6 l" r* T" Z/ E1 ^: \) ?# |The above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only