Interesting article about Oil

wanghong

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  F9 ^) g! n7 k% FBelow is an Interesting article I found, which says that.....Do not
1 z2 p% m. i; C  s, F( D& F# xexpect much from Crude Oil producers and future is not with the
& G' p4 C1 u$ m4 Y: _2 t1 j8 S& C4 }companies producing Jet fuels but Biofuels. Also no wonder if some of
- l: K; U, f3 A( Hthese oil producer will go bankrupt or out of the business even if
) X5 X1 J$ F. F% |6 ncrude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils

, W0 d" a5 Z9 c& X5 b9 Q; t5 a+ {Recently OPEC reduced crude oil production twice over just a few
6 h4 E+ d# r4 ~7 l/ xmonths. 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
, m8 d/ d) Z6 C0 G/ Aleast $50.00 per barrel. Today, oil price declined by a record amount.
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  Q! R: k- `* s  ?There are several reasons the price of oil is decreasing in the face
$ X6 h& f' b! C5 j3 tof so much news. These reasons are:


1. New oil has been found in Canada, Montana, North & South Dakota and
, O% L- U4 W9 Z7 e  cin 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.
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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5 c& u& j3 [1 M4. 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
: j: A  u$ H; [racing to produce bio fuels.


5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
3 S4 O! ?, W  H7 @. Jcattle, turkey and chicken processing plant will soon sell their fat
$ x) ?& B) x, g8 u; r/ L. }to bio-diesel producers. One pork processing plant in Oklahoma is
# J- b2 g. u5 ^3 R$ }) o7 lproducing 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
4 o9 x% N2 ]3 kconstruction around the world at this time. Several hundred more are
expected to be built in the future. Much of the energy they produce
5 {1 o7 s# S2 ~" G& |' e: _$ Iwill replace oil.

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: s8 x4 w! |( ^" Z$ H) K7. Every company in any form of transportaion business is replacing
# o" V# Q* f% ?$ y# molder equipment such as trucks, airplanes, train engines, ships, etc.
with new more fuel efficient equipment. Airlines and railway companies
4 Z" n/ P2 r7 @3 t8 U' C7 }are 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-
  @' S0 e" y+ D# }8 n5 yfuel is cleaner and performs better than jet fuel.


1 k( U, [" n1 v8. Cities and counties throughout the US are selling the rights to
5 [' {5 ~2 ]. R- Q2 m) qcapture 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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( _. p1 q' H4 {- t; q' r9. Coal is being transformed into a clean burning liquid fuel. The CO2
1 R9 D! G3 C5 a3 n. s1 Fproduced as a byproduct is sold to oil companies for injection into
! M. |/ I0 q; _% [) a- foil wells.


- N3 d' S1 u, R* z1 K10. Solar, wind and ocean energy is displacing oil as an energy
: I' ~% a$ G8 hsource. Three new wind turbines are being erected every day in the US.
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' e8 O5 k9 C/ U2 q4 }! J# E$ {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
3 C+ f: ^0 v% ^3 _9 qto control oil prices.
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7 f7 |( c! c+ z: o1 HWith the above scenario, I still believe that there are under
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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+ c( L+ W6 ~' w% hThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
% v$ n) R. r/ n. G8 d2009 ... FYI-Only