Interesting article about Oil

wanghong

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& `' H5 x0 Z% B6 uBelow is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
companies producing Jet fuels but Biofuels. Also no wonder if some of
  A9 A+ v) t+ Qthese oil producer will go bankrupt or out of the business even if
0 @* ^- W$ H* ^- ^4 d* ncrude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils

Recently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
: n; a, {6 r4 r' ]4 fA year ago these things would have spiked the price of crude oil by at
least $50.00 per barrel. Today, oil price declined by a record amount.
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2 M5 \6 z' t& W: C* X( p, C$ |There are several reasons the price of oil is decreasing in the face
3 l% |3 r2 z: ^# nof so much news. These reasons are:


8 m: W/ d2 j2 z1 [! y# R1. 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.
( h3 [$ }* \, ^% e3 l( U8 g: T" ~This is the largest find in North America.
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$ @0 l, C% ]6 B7 y7 k* F0 K) L. F3. 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
fuel is being produced from many plants and algae. The production
2 c4 S& c% z' `; }! E+ z% zpotential per acre in some cases is astounding. Many countries are
. Z! }$ |5 H. z+ \& H# Qracing 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,
1 }9 [: `% p+ ]+ U; H1 M5 Jcattle, 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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. O, F/ p0 f0 {9 L5 V7 @6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
) I, P8 W0 |6 t/ g' ?expected to be built in the future. Much of the energy they produce
will replace oil.


7. Every company in any form of transportaion business is replacing
: R/ m6 S5 T' _' Wolder equipment such as trucks, airplanes, train engines, ships, etc.
4 f: Q7 m: _4 ^$ q' n3 j) N+ ]* m" iwith new more fuel efficient equipment. Airlines and railway companies
4 b& c- ^4 U) t) [are experiencing 20% to 25% better fuel econony with the new
, H* ?- d  u& g3 h; O' lequipment.
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Airlines are flying airplanes with bio-fuel. They are finding the bio-
; T  H& K( D! {0 E& H, nfuel is cleaner and performs better than jet fuel.
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8. 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
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" W+ F9 h" d. ?7 M+ g9. Coal is being transformed into a clean burning liquid fuel. The CO2
9 e3 M! b7 Y' X6 ~8 N( iproduced as a byproduct is sold to oil companies for injection into
0 o+ i8 r/ ]7 |1 y# zoil wells.
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+ n) ^* ^2 }- _$ I% a. a10. Solar, wind and ocean energy is displacing oil as an energy
+ E6 a& [- A5 \! d' r8 U: d* Qsource. Three new wind turbines are being erected every day in the US.


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
. y7 \- k6 o) c$ n% Pchanging. The important thing is that OPEC no longer has the ability
to control oil prices.
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With the above scenario, I still believe that there are under
/ V+ \9 K8 `( k, jperformed OIL companies and probably they are yet to get the justified
5 F0 ?9 `" T# U2 `6 V9 Pvalue .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...


The above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only