Interesting article about Oil

wanghong

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5 A3 |8 F; D; n5 {8 GBelow is an Interesting article I found, which says that.....Do not
" ^& t0 ^( d* S4 e# |7 V8 x9 ?; `expect much from Crude Oil producers and future is not with the
! e8 X8 U* d+ U1 @companies producing Jet fuels but Biofuels. Also no wonder if some of
; m; s3 Y! w4 i/ f, E: ~these oil producer will go bankrupt or out of the business even if
1 p: U+ W9 {* z! P) `crude prices improves. This implies also to good names such as Shell,
$ i  r8 ^; g4 l& \! p# M+ rEXXON, BG, BP, Cheveron ....xyz.. oils

9 H/ L- [  C( M/ gRecently OPEC reduced crude oil production twice over just a few
5 a3 I1 b5 z, Z: f) Kmonths. 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
6 W/ T3 m( u* R' W& fleast $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
' G8 c& o$ ^2 Z7 j- zof 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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2. New natural gas has been found in Pennsylvania and West Virginia.
; R5 H" G, @0 }1 F- SThis 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.
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4. Production of bio-fuels is beginning to reach critical mass. Bio
7 v# k7 W) D9 b) l$ vfuel is being produced from many plants and algae. The production
5 B7 D" l3 Q$ Y# {! o) A/ Apotential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.


' B" U; c- Z7 V/ m5. 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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6. There are 99 nuclear reactors in various stages of planning and
' B2 h5 b/ X9 C& ~' gconstruction around the world at this time. Several hundred more are
" ~( S2 K; p4 V2 n, lexpected to be built in the future. Much of the energy they produce
+ O: _# \. M. n8 {. ywill replace oil.
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7. Every company in any form of transportaion business is replacing
' Y+ B8 b2 G0 f& q) T+ X. Y; qolder equipment such as trucks, airplanes, train engines, ships, etc.
3 L0 m& E( ~5 k' D+ Jwith new more fuel efficient equipment. Airlines and railway companies
4 {" C7 u, Y1 eare experiencing 20% to 25% better fuel econony with the new
- B* n# \) V4 Mequipment.
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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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" A2 j# g% x- L3 r' v4 ^8. Cities and counties throughout the US are selling the rights to
( E) q4 o+ U% a" ~1 l. ^& i1 rcapture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
oil.


( g+ e4 j, H& R+ e, b4 y' O, H* f- D9. Coal is being transformed into a clean burning liquid fuel. The CO2
7 v. F! g. p. p5 Zproduced as a byproduct is sold to oil companies for injection into
* r0 ~6 y7 b' Y. z  d0 t' Moil wells.


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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; a5 b3 N+ y1 BEach of the above by itself will not make a large difference in the
9 n9 A6 g3 u  W. \price 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
8 T" v$ m1 e# }+ O. Vto 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
! l0 B/ L, z$ p& wvalue .....
7 ], S3 D3 |: T5 F6 YIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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$ i- M( Y: y0 Y' `The above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only