Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
# g2 g5 P2 A8 Gexpect much from Crude Oil producers and future is not with the
companies producing Jet fuels but Biofuels. Also no wonder if some of
. L! U. a! N) Rthese oil producer will go bankrupt or out of the business even if
' V6 |- u. u/ Q- Z& Jcrude prices improves. This implies also to good names such as Shell,
+ V, G/ G0 p! g! o; j6 q& V" NEXXON, BG, BP, Cheveron ....xyz.. oils

6 v0 z! I) H% _/ ^' `  Y; P" \& fRecently OPEC reduced crude oil production twice over just a few
months. 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
least $50.00 per barrel. Today, oil price declined by a record amount.
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There are several reasons the price of oil is decreasing in the face
0 }6 s4 K& g' J/ I/ h! Cof so much news. These reasons are:
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1. New oil has been found in Canada, Montana, North & South Dakota and
in the ocean near Brazil. Each of these oil fields has more oil than
! K  b! }# p& j$ P, Q& l5 ^. YArabia.
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) G0 _  q/ w1 e1 B+ c0 U2. New natural gas has been found in Pennsylvania and West Virginia.
& d: i7 n6 x" C& L9 U2 dThis is the largest find in North America.
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# {7 o$ F8 a6 O' H3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.


  z5 J# U0 e. O# T# d1 j4. Production of bio-fuels is beginning to reach critical mass. Bio
  M4 H( `4 m+ mfuel is being produced from many plants and algae. The production
( J4 K  t  g1 R1 r0 cpotential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.
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5 H1 V: W$ `! [, f# R5. Virtually every restaurant in the US and all food processing plants
/ Z3 N5 s3 Y* B- y. k* rare now selling their used oil to bio-diesel producers. Every pork,
8 v9 r0 y5 p- ~; o% E3 d  Wcattle, 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.


6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
) ~, }9 ~  j" j" {7 A6 Aexpected 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
+ {- Q# V* V" B3 Golder equipment such as trucks, airplanes, train engines, ships, etc.
with new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
& d2 S# G: K. b+ G2 cequipment.

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2 z8 y& |2 V+ P, o, zAirlines are flying airplanes with bio-fuel. They are finding the bio-
8 ]- P" t* q( \7 ufuel is cleaner and performs better than jet fuel.
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0 i0 t; I& |" ~! e) v7 {$ W3 @+ o$ A8. Cities and counties throughout the US are selling the rights to
) Z& v2 `8 B8 P& j& `6 Lcapture methane gas from landfills. This is a huge source of gas
6 n: B0 |1 u! i' U7 m! Zavailable at very little cost or risk. The gas is displacing crude
% A$ S7 }! I0 t3 p+ Foil.

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9. Coal is being transformed into a clean burning liquid fuel. The CO2
. C. P2 e3 }, |: W, Rproduced as a byproduct is sold to oil companies for injection into
oil wells.

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10. Solar, wind and ocean energy is displacing oil as an energy
- y3 p9 \, t6 M  Y* |source. 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
  |* P- Z' Q! R- \( Tprice 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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With the above scenario, I still believe that there are under
) c$ {: O" \+ m, bperformed OIL companies and probably they are yet to get the justified
8 h( Q  O3 f9 b: n# rvalue .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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The above articles are from WSJ .............PUBLISHED ON 9TH JAN
& S5 I+ q% U4 G# [2009 ... FYI-Only