Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
2 k" l6 a. y7 z: }7 i: B- n4 Eexpect much from Crude Oil producers and future is not with the
companies producing Jet fuels but Biofuels. Also no wonder if some of
  n" ~1 f( t1 dthese oil producer will go bankrupt or out of the business even if
& F2 F. ?/ D$ g  V: e9 @8 R3 `crude prices improves. This implies also to good names such as Shell,
4 U7 n1 w% l7 `+ K' jEXXON, BG, BP, Cheveron ....xyz.. oils
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1 h0 T+ Y- i% b9 SRecently 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
least $50.00 per barrel. Today, oil price declined by a record amount.


0 x9 \0 S# w+ y+ yThere 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
' ?9 X% {5 Q: b: X" f. I( bin the ocean near Brazil. Each of these oil fields has more oil than
7 v1 f% T5 {( }' P. FArabia.

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9 d+ ]+ v0 V! V: B) R: [8 F; T2. New natural gas has been found in Pennsylvania and West Virginia.
# Y9 s0 r0 `& a! \This is the largest find in North America.
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3. New methods of injecting CO2 and surfactants into oil wells is
; C' T+ y3 D2 Y( P& @being used to double their output.
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6 Z1 @. g. m" u, h* b' v4. Production of bio-fuels is beginning to reach critical mass. Bio
, E. J( e' H$ b+ W8 e7 Z0 Kfuel is being produced from many plants and algae. The production
# t) R6 t, m9 l9 b  Qpotential per acre in some cases is astounding. Many countries are
! w3 T& M. N4 o& y% N% j" nracing 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,
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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2 \4 j& `" x! P( P1 c" E6. There are 99 nuclear reactors in various stages of planning and
9 t- L% Y# u' a0 G0 v1 dconstruction around the world at this time. Several hundred more are
- H9 i4 j( J9 c. V. Fexpected to be built in the future. Much of the energy they produce
7 c) U. j8 O7 B9 @0 u; }, qwill replace oil.

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7. Every company in any form of transportaion business is replacing
. j. Z( K* M; w, polder equipment such as trucks, airplanes, train engines, ships, etc.
( h9 R7 O( W6 J2 Uwith new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
equipment.


% O1 U& e# N! p! y. x7 I9 T* V2 YAirlines are flying airplanes with bio-fuel. They are finding the bio-
2 H9 ~: X5 m) C& ~2 ffuel is cleaner and performs better than jet fuel.
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5 m6 C1 _& @8 _5 I: S8. 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
oil.
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9. Coal is being transformed into a clean burning liquid fuel. The CO2
! j6 y' ^, F2 l/ e% }% y" @2 yproduced as a byproduct is sold to oil companies for injection into
oil wells.

. R" q4 D0 ~) ?; G  g
) Z0 k5 n: n  U10. 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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Each of the above by itself will not make a large difference in the
6 ?! n: u' l) q( |1 _price of crude oil but the sum of all of them together is world
# g8 s( @' _5 _. X% I- ychanging. The important thing is that OPEC no longer has the ability
to control oil prices.
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0 H0 Y% w5 _/ @With the above scenario, I still believe that there are under
. [  N3 d5 S7 E9 lperformed 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
4 o# E  }) p  L2009 ... FYI-Only