Interesting article about Oil

wanghong

--------------------------------------------------------------------------------
) y3 q6 ?7 s8 C9 U$ BBelow is an Interesting article I found, which says that.....Do not
: W' {( |) n8 u1 b$ Y' F; s4 [expect much from Crude Oil producers and future is not with the
companies producing Jet fuels but Biofuels. Also no wonder if some of
4 s' j% T+ {1 y% Y# x$ u! n8 Gthese oil producer will go bankrupt or out of the business even if
/ O0 D. t: v1 u3 lcrude prices improves. This implies also to good names such as Shell,
( h" w8 r6 f1 `1 WEXXON, BG, BP, Cheveron ....xyz.. oils
% i. R* F6 v2 b/ s* V
! C8 a/ D4 d9 W+ XRecently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
  [) y1 M- W/ A2 R' R- L3 KA year ago these things would have spiked the price of crude oil by at
0 w6 ]+ S1 j9 L' Sleast $50.00 per barrel. Today, oil price declined by a record amount.
% r2 O, @) [: y; w4 q) ]
7 y0 G" S/ i+ y$ g
* z  K4 x. X. dThere are several reasons the price of oil is decreasing in the face
4 i) H* O. I6 H# qof so much news. These reasons are:

( T  b% M* s. Y* t1 [+ m) U# x; d2 f
1. New oil has been found in Canada, Montana, North & South Dakota and
2 B) P6 o- q0 f( V3 ?0 u1 ]in the ocean near Brazil. Each of these oil fields has more oil than
! o3 s$ h  S4 d! z6 r8 x4 O2 sArabia.

) K  _3 l& T2 V8 H' j3 J
: c+ o/ }7 p8 ]% |$ ?2. New natural gas has been found in Pennsylvania and West Virginia.
6 l& ~: j) M  j3 vThis is the largest find in North America.


# A7 J- i* ]: d) S3 k& M* z; Y" t3. New methods of injecting CO2 and surfactants into oil wells is
; ~7 |; i3 s$ ^6 f9 H6 |! r' Bbeing used to double their output.


; G# ~1 [5 Q6 i/ O" M: L4. 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
: s  x& L* ~7 B+ K- ~0 I# b; Dracing to produce bio fuels.

& Z' G5 q' Z5 ^# a* ~" L; o
5. Virtually every restaurant in the US and all food processing plants
' w! U5 z( a8 yare now selling their used oil to bio-diesel producers. Every pork,
3 ~5 {6 o. a- d1 bcattle, turkey and chicken processing plant will soon sell their fat
to bio-diesel producers. One pork processing plant in Oklahoma is
4 f6 Q9 E  \* |5 \producing 30,000 gallons of bio-diesel per day from pork fat.
0 ]8 g! i. e* s( n

6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
0 n* S# Z  {0 M6 oexpected to be built in the future. Much of the energy they produce
/ p- G$ q' a' D2 ^2 lwill replace oil.
, L: J" a7 h: `8 X

7. Every company in any form of transportaion business is replacing
older equipment such as trucks, airplanes, train engines, ships, etc.
- x1 a8 K. h3 Y( owith new more fuel efficient equipment. Airlines and railway companies
& V8 W1 ^6 \% s  V9 rare experiencing 20% to 25% better fuel econony with the new
  a+ [% A: h# x3 D# e% E4 x& j2 }6 |equipment.


0 ]  F7 e. |  D. {' M/ rAirlines are flying airplanes with bio-fuel. They are finding the bio-
4 w6 t6 k+ b  ]5 V, sfuel is cleaner and performs better than jet fuel.


% W  u, |, U! G. H0 x8. 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
oil.

% Z5 J& j8 M5 B- I* w' d" W% E
6 o& U1 S+ H" d% h8 t! q9. Coal is being transformed into a clean burning liquid fuel. The CO2
9 D* E% o( w$ ^produced as a byproduct is sold to oil companies for injection into
oil wells.


2 p+ n: W. Z0 p. z10. Solar, wind and ocean energy is displacing oil as an energy
source. Three new wind turbines are being erected every day in the US.

! F& \* G* l& T4 b; a" ~. F) b
/ {* E4 t0 L9 c7 L% ]# ZEach 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
% ]% D  i% y1 ?! ^* tto control oil prices.
, R  R" l; _4 `' v$ R

: N! j8 g. L  o- h0 cWith the above scenario, I still believe that there are under
* ?8 }+ m' l- u* Pperformed OIL companies and probably they are yet to get the justified
value .....
' ^5 j- @6 _. v5 W. UIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
7 d* G- @7 |6 B0 e& ?5 w, b

; p) w) I  j2 Q6 J9 `; N  @: r( BThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only