Interesting article about Oil

wanghong

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& w% h/ c) f2 d4 l" y# d8 {Below is an Interesting article I found, which says that.....Do not
" Y& y8 g& i$ E( B1 ~9 g" ]+ bexpect much from Crude Oil producers and future is not with the
companies producing Jet fuels but Biofuels. Also no wonder if some of
; `3 @+ `! U# b9 L5 Y. kthese oil producer will go bankrupt or out of the business even if
' l& o* z/ b) r4 \+ {9 e  xcrude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils
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8 u3 v8 S% x$ P, nRecently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
5 P2 g& h+ U8 D  sA 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.


4 k2 H' @' r+ x4 W3 i9 j8 K/ tThere 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
Arabia.
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$ P) T* l5 M  A# q  }2. New natural gas has been found in Pennsylvania and West Virginia.
% E3 z& q9 f4 d; o6 `This is the largest find in North America.
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& q+ ~1 A4 e2 X$ v+ e3. New methods of injecting CO2 and surfactants into oil wells is
0 E8 ?; G+ P& e  @: b5 u1 v" \being used to double their output.


* [4 L1 g/ r( A, r/ j1 J  S4. 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
. n! D6 ~/ [$ o- S4 ?9 \0 f/ C4 Zracing to produce bio fuels.

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5. Virtually every restaurant in the US and all food processing plants
, V3 P2 n6 U- o; x+ yare now selling their used oil to bio-diesel producers. Every pork,
4 w  o- m, W2 Z$ N/ h! W' ^7 Z0 zcattle, 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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6. There are 99 nuclear reactors in various stages of planning and
* Y. Z& ]$ X2 f+ X  wconstruction around the world at this time. Several hundred more are
1 F, o6 o. }, B! }2 F/ Y: cexpected to be built in the future. Much of the energy they produce
will replace oil.
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3 {1 N; r  n' b4 b0 h7. Every company in any form of transportaion business is replacing
older equipment such as trucks, airplanes, train engines, ships, etc.
4 p% |) \9 \4 [with new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
+ l* S0 @# l1 Q8 \" jequipment.

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# ]' _( y/ ]8 w! V$ y! L! _3 D/ \2 n$ WAirlines are flying airplanes with bio-fuel. They are finding the bio-
0 k; I" S1 R) V( l$ |fuel is cleaner and performs better than jet fuel.
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8. Cities and counties throughout the US are selling the rights to
4 l' C# l$ _3 _2 c' c0 [- Rcapture methane gas from landfills. This is a huge source of gas
; z5 }/ x- j2 g& q+ ]available at very little cost or risk. The gas is displacing crude
oil.


9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
0 g: c: O" |8 k6 K4 C, H1 boil wells.

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10. Solar, wind and ocean energy is displacing oil as an energy
- b9 O% E. q5 u+ N: Q( zsource. 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
! _! j8 k- _4 m0 K6 I7 ?changing. The important thing is that OPEC no longer has the ability
2 T" a0 l) r1 B1 p0 uto control oil prices.
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With the above scenario, I still believe that there are under
1 d9 {: |: p+ z, H$ S# l2 i  ?* x& \5 sperformed OIL companies and probably they are yet to get the justified
, k# X& c* o9 p+ M- v* _value .....
2 ^0 e% Y+ ]7 T, d5 V& ?6 rIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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# |! }1 v- q' k. h# nThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only