Interesting article about Oil

wanghong

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$ z5 T2 v* d: i, OBelow 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
% \$ N  O, F, J- y+ T: X+ l6 lthese oil producer will go bankrupt or out of the business even if
* @+ Y4 b% P, C3 m; v$ H7 ccrude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils

- }, ]1 x5 @/ V( |# e: |Recently OPEC reduced crude oil production twice over just a few
) y0 q3 j$ l9 r8 l* M( X; Vmonths. 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
3 y' I3 T4 L) X! W% {least $50.00 per barrel. Today, oil price declined by a record amount.

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There are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:

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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
% p8 s5 Y7 V% @0 _: i" uArabia.
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2. New natural gas has been found in Pennsylvania and West Virginia.
4 K% Y! W& Y5 B' Y6 X( H2 _+ WThis is the largest find in North America.

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3. New methods of injecting CO2 and surfactants into oil wells is
1 Y7 d" f, A$ ^9 M9 ^being used to double their output.

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4. Production of bio-fuels is beginning to reach critical mass. Bio
9 T& u6 l0 O: ^fuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
% s' u6 B9 y0 {! `racing to produce bio fuels.

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! H# Z& O9 [6 D( g$ {# @5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
+ D. I* O0 c) J- @+ {2 P4 Ecattle, turkey and chicken processing plant will soon sell their fat
+ t! N" g5 F/ L8 U; d+ a0 Mto 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
4 d  C1 ]0 i# a/ _; C& Nconstruction around the world at this time. Several hundred more are
expected to be built in the future. Much of the energy they produce
. H7 U: U5 ]5 G6 w# E* Uwill replace oil.
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7. Every company in any form of transportaion business is replacing
" \. \; U! S8 Aolder equipment such as trucks, airplanes, train engines, ships, etc.
with new more fuel efficient equipment. Airlines and railway companies
; D: a% `8 m) g6 Xare experiencing 20% to 25% better fuel econony with the new
) N9 j+ B- ]! h3 l2 Nequipment.
  W( t/ P6 q# X# `  r# R

- R1 T& z0 D3 s3 M* @Airlines are flying airplanes with bio-fuel. They are finding the bio-
& W& ?% G+ X) z% `9 Efuel is cleaner and performs better than jet fuel.


, K) x& G3 C* z: g3 b8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
; Q* E/ Z6 P# V" s: b" Xavailable at very little cost or risk. The gas is displacing crude
9 x+ K3 Q/ W* e3 Q( q# H! x' f! r: |oil.

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- m& W; q: m3 N0 {8 F" U. s9. Coal is being transformed into a clean burning liquid fuel. The CO2
. g& H% r$ t9 s- w+ rproduced 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
source. Three new wind turbines are being erected every day in the US.
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( w# g1 R" z$ ?# ^6 d3 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
, G2 D% a& V% O! ~changing. The important thing is that OPEC no longer has the ability
to control oil prices.


' m# T$ I6 s3 G$ }% hWith the above scenario, I still believe that there are under
; w: E# ~1 k' D, Y: dperformed OIL companies and probably they are yet to get the justified
value .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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7 L" F, L3 S% L% V7 c! |The above articles are from WSJ .............PUBLISHED ON 9TH JAN
! h$ ~& ^: u  i% A& V2009 ... FYI-Only