Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
" m& q. ~: G2 B3 _3 ~' cexpect much from Crude Oil producers and future is not with the
companies producing Jet fuels but Biofuels. Also no wonder if some of
* Q6 X/ |8 b: y* e3 g" C' ethese oil producer will go bankrupt or out of the business even if
( {4 z+ [. X0 U0 ]crude prices improves. This implies also to good names such as Shell,
1 T" V% H' t9 f/ a5 YEXXON, BG, BP, Cheveron ....xyz.. oils

, X/ |' ?1 W# n. f3 P5 T# T, Q/ }Recently OPEC reduced crude oil production twice over just a few
% q8 m/ D; h( \# d* }months. There are three wars going on in Gaza, Iraq and Afghandistan.
) p, w! D; X2 ^( pA 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.


  _* n7 [7 O0 a" UThere are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:

" U, f! [3 A# M1 H7 S
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
% P5 Z# \% I6 ?! o7 l" R# MArabia.


! U* g* n9 \- O' j2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.
! D% [* A" q" q, Y% e6 a2 }! B2 O
) w8 m$ H& |$ R; ~1 o. I- U1 c* ^7 \
) [+ x0 h7 Z6 ~7 i5 p1 t( B3. New methods of injecting CO2 and surfactants into oil wells is
- e# J" C) K6 X9 L& kbeing used to double their output.

; h9 ?$ L% P0 W: H
4. Production of bio-fuels is beginning to reach critical mass. Bio
& _  j" E' M2 u4 [- q" w/ v9 sfuel is being produced from many plants and algae. The production
0 E8 [5 ]0 k& Z5 H9 g' Epotential per acre in some cases is astounding. Many countries are
- G3 c5 ]4 u: X4 E4 c5 P4 `racing to produce bio fuels.
; Z8 u7 s* M& }1 m

; K1 p& J! j% I" q6 Z7 ~5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
. x9 Y9 g& k  m. Vcattle, turkey and chicken processing plant will soon sell their fat
- z( U4 \/ h& v( Yto bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.


6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
6 r6 p) i1 \" Y' Iexpected to be built in the future. Much of the energy they produce
will replace oil.


7. Every company in any form of transportaion business is replacing
3 F* Q3 b9 a5 {, B& x; p, n, volder equipment such as trucks, airplanes, train engines, ships, etc.
with new more fuel efficient equipment. Airlines and railway companies
" p: D: M' f: Mare experiencing 20% to 25% better fuel econony with the new
equipment.
0 g4 L. q3 D: I

Airlines are flying airplanes with bio-fuel. They are finding the bio-
' ?6 D+ }! T( v/ u9 m0 pfuel is cleaner and performs better than jet fuel.


8. 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
" ?6 Q" K: Y( _, n8 @! \! Woil.
' a5 }& T  j5 Q1 n

$ A1 K; A; l$ P; J7 j( I9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
oil wells.


! s' {, E# t8 R- }* ?) ?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.
' q, d1 R  k6 y1 M% D
+ m$ y6 ^; H) U
8 ^: Q* f8 Z; o; bEach of the above by itself will not make a large difference in the
4 i$ `) p/ P5 x& c; ^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
1 k7 p% ?+ C7 S8 l8 n1 F! sto control oil prices.


With the above scenario, I still believe that there are under
! f8 p* V3 z6 e/ }  t# qperformed OIL companies and probably they are yet to get the justified
7 l3 j( U$ U1 E* M6 R8 n" [3 tvalue .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
- R8 Y1 y; @  m2 I6 l

The above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only