Interesting article about Oil

wanghong

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Below 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
! R% y& k+ m- `! b# ?these oil producer will go bankrupt or out of the business even if
$ m( C$ Z: m# ~: E+ l4 ~  ~crude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils
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1 X5 I2 O7 _( p4 [, f) T5 D/ \: fRecently OPEC reduced crude oil production twice over just a few
0 g6 r! `, U% J: ~+ ymonths. There are three wars going on in Gaza, Iraq and Afghandistan.
( y2 j4 @0 n! o5 x! Q, B5 y2 K( ZA 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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* r& d5 k* y/ U2 a  Z( A- w2 cThere are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:


" [; ^  s/ W0 L+ |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
Arabia.
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4 u/ U9 f- ?1 v, w0 J2. New natural gas has been found in Pennsylvania and West Virginia.
' V7 N- a6 x+ f0 e% y2 A5 XThis 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.


4. Production of bio-fuels is beginning to reach critical mass. Bio
! o; `+ b! N* |, pfuel is being produced from many plants and algae. The production
8 X! J/ P! d; P* g0 \* r0 o1 }potential per acre in some cases is astounding. Many countries are
! p! q7 N/ K8 Qracing to produce bio fuels.

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5. Virtually every restaurant in the US and all food processing plants
! [& D! {, F! ~& u# B: o3 lare now selling their used oil to bio-diesel producers. Every pork,
cattle, turkey and chicken processing plant will soon sell their fat
( b. B5 q- d  _4 S+ i, Kto 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
& p/ z8 z; I( c" l( g& {! @$ P% ?construction around the world at this time. Several hundred more are
; A6 n& v. Q0 i3 l! y4 l. j/ q& M7 nexpected to be built in the future. Much of the energy they produce
will replace oil.
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$ D  T: T. ]9 L5 {6 x7. Every company in any form of transportaion business is replacing
# a4 S2 N" M# Y( H& uolder 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.
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( R/ j- P& n3 \9 kAirlines are flying airplanes with bio-fuel. They are finding the bio-
! b* n4 L: j. i; O* M% h7 l3 S9 Ofuel is cleaner and performs better than jet fuel.

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1 n" c2 x9 |0 J3 y; H  n0 Q5 j8. Cities and counties throughout the US are selling the rights to
5 ?) Z# n3 z/ v) R5 o6 Gcapture methane gas from landfills. This is a huge source of gas
- ]0 R6 {1 M0 i9 e& ^0 Z3 oavailable at very little cost or risk. The gas is displacing crude
5 v4 T3 C: v5 W3 s/ `' u1 Coil.
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: E# D- G( T6 d, 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
& j4 q/ c3 \& f' r0 ]oil wells.
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" {; i$ J- f3 s. a: L; w4 n( S8 L10. Solar, wind and ocean energy is displacing oil as an energy
& h0 P: V) c( N) E- K; Lsource. 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
price of crude oil but the sum of all of them together is world
# N$ y& j- j5 b6 Z6 h' u5 C" xchanging. 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
value .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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The above articles are from WSJ .............PUBLISHED ON 9TH JAN
. J, Q! V" j/ }# J( P( K& Q2009 ... FYI-Only