Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
6 H- P  l6 z0 W4 W9 B+ ^; |; Wexpect much from Crude Oil producers and future is not with the
7 E; }% ?6 y' ^, [+ w9 Rcompanies producing Jet fuels but Biofuels. Also no wonder if some of
3 S$ A7 T! v6 q  H9 f. L8 [these oil producer will go bankrupt or out of the business even if
: S5 N0 v' V/ Scrude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils

8 k6 D9 O! o' S" gRecently OPEC reduced crude oil production twice over just a few
) F) \/ ~2 D* C5 P8 ^- g0 J* dmonths. There are three wars going on in Gaza, Iraq and Afghandistan.
# K7 `/ l! g! N% Y+ T- jA year ago these things would have spiked the price of crude oil by at
9 `1 _( z0 n) }+ V; e5 V0 ]least $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
, X% [$ B9 w; {* I, ~" aof so much news. These reasons are:
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; Q1 s4 ]& [( f# O1. New oil has been found in Canada, Montana, North & South Dakota and
$ o4 X+ S7 c6 pin the ocean near Brazil. Each of these oil fields has more oil than
3 _; y6 U" A# l9 hArabia.


; n2 ~8 y8 b/ c# M8 |4 M2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.


- z. P' h# e0 V9 @& e! p4 R' d3. New methods of injecting CO2 and surfactants into oil wells is
9 |) f$ y! D! \$ Hbeing used to double their output.
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4. Production of bio-fuels is beginning to reach critical mass. Bio
3 t' [' y! C' t7 }0 y9 K7 Sfuel is being produced from many plants and algae. The production
+ g- E* ^& E+ Rpotential per acre in some cases is astounding. Many countries are
9 R+ K$ Z5 E  o0 ?! [$ aracing to produce bio fuels.

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+ |+ `, B: f% _8 b/ r1 d  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
; W3 Z' k7 y) w8 Sproducing 30,000 gallons of bio-diesel per day from pork fat.

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" s. W+ w, B1 s' o6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
/ Z+ `4 a8 s, o/ M3 }3 F$ \% t) [# Zexpected to be built in the future. Much of the energy they produce
* L" W7 W! s( U( t$ zwill replace oil.
7 P* `) v% n- V

- C9 x, N' a* |+ i+ }4 W7. Every company in any form of transportaion business is replacing
* _: l, X. [; x4 z7 Y! q% ~older equipment such as trucks, airplanes, train engines, ships, etc.
with new more fuel efficient equipment. Airlines and railway companies
5 d. g% m5 x( t7 V; f8 \& M9 Gare experiencing 20% to 25% better fuel econony with the new
6 M4 i7 F: U8 \9 B4 A" x2 ^3 Gequipment.

# L! O  b1 G8 N3 B$ @. C7 C
0 q' K3 ^- s- z. |8 y! nAirlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.
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" I/ Y" k( D2 \5 D: p( x8. Cities and counties throughout the US are selling the rights to
/ x0 e9 X1 z  G! f0 tcapture 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
! {6 [6 K" ^0 F( hproduced as a byproduct is sold to oil companies for injection into
% v1 K+ |( i. h0 P. soil wells.
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, g- @; F4 j( x& r) J6 {
10. Solar, wind and ocean energy is displacing oil as an energy
$ S3 ^0 ^, `1 v% w( esource. Three new wind turbines are being erected every day in the US.


$ z" i- y% e. R4 E4 {- I- [1 n# r) qEach 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
changing. The important thing is that OPEC no longer has the ability
5 W! w' N) M; i8 Lto control oil prices.
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* x9 h2 _: p. [% q3 v- N
6 l7 y& z0 l2 j+ \" e3 M6 P, }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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& C' E" b% j! R  d! R7 D
The above articles are from WSJ .............PUBLISHED ON 9TH JAN
" U# G+ Z5 a) t7 t2009 ... FYI-Only