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
8 r  W  ?: O* P& x/ n4 \# I2 acompanies producing Jet fuels but Biofuels. Also no wonder if some of
. h, g6 k+ B2 Ythese oil producer will go bankrupt or out of the business even if
  L1 e8 f5 _, q- g( d8 _crude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils
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Recently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
( l! ~% p! W, N, k( ?) BA 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.


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


, ]- U0 V, u5 a1. 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
, l8 O; b) ]6 k1 X" k3 R8 @& sArabia.


% z3 }) I7 @6 ^' a6 u2. New natural gas has been found in Pennsylvania and West Virginia.
( p  T1 j! S" w: \( B5 z0 ~This is the largest find in North America.


/ m" \4 ]' s3 X+ \' `  u$ Y. m( d; c3. New methods of injecting CO2 and surfactants into oil wells is
+ n2 u7 J' d: D$ A4 hbeing used to double their output.

( h; J$ {6 H& h: C) o, i
9 S& U1 M. _9 L3 H3 v4. Production of bio-fuels is beginning to reach critical mass. Bio
fuel is being produced from many plants and algae. The production
' s7 k3 t2 P  Y  spotential per acre in some cases is astounding. Many countries are
( @% V9 P& G3 kracing to produce bio fuels.
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5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
8 [: m2 h/ N; O* q* g  w( u9 g3 Ycattle, 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
construction around the world at this time. Several hundred more are
0 r! c: |1 g  bexpected to be built in the future. Much of the energy they produce
% [, ^  A% u6 u' T! o- a# z) kwill replace oil.

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1 U" p8 T7 L. F' _( c7. Every company in any form of transportaion business is replacing
. R% U2 ?8 E  ^) t! \' o3 zolder equipment such as trucks, airplanes, train engines, ships, etc.
' d. Z" O! B/ T8 N& ]/ Cwith new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
! ]: F2 p; k* B" Pequipment.
9 d3 z" j$ [( |5 u3 D" Y; w

Airlines are flying airplanes with bio-fuel. They are finding the bio-
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
( Y7 `" P4 E. |$ [, G! D& Ocapture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
4 G& l6 X4 n9 \8 V7 g/ u& {oil.
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, A9 Q; q& }* }: v) ]: Z# t
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
oil wells.
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$ U% M, ^" o2 _) V: m: d! ]
10. Solar, wind and ocean energy is displacing oil as an energy
% M5 i5 F# X5 O1 ~0 T! F" {& vsource. Three new wind turbines are being erected every day in the US.
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8 y6 u4 q! T% |4 n, K; fEach of the above by itself will not make a large difference in the
$ l; N6 H9 k- z8 m4 pprice 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
to control oil prices.
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0 l3 m, I6 @. R/ e  N1 q; xWith 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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( q: i& |- q* o5 _5 WThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
+ _, P. x% T/ ?+ M* K2009 ... FYI-Only