Interesting article about Oil

wanghong

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0 b- h9 D$ z. Y1 a: UBelow is an Interesting article I found, which says that.....Do not
# r! q+ b! k& d* m# xexpect much from Crude Oil producers and future is not with the
5 A0 f" \8 \* b$ D0 ^$ S0 x  Vcompanies producing Jet fuels but Biofuels. Also no wonder if some of
3 S; c) S+ Y+ [& Y: Rthese oil producer will go bankrupt or out of the business even if
crude prices improves. This implies also to good names such as Shell,
( V) \3 N$ @2 JEXXON, BG, BP, Cheveron ....xyz.. oils

Recently OPEC reduced crude oil production twice over just a few
# q' {! @3 y, O/ X/ s% U5 U; amonths. There are three wars going on in Gaza, Iraq and Afghandistan.
3 x& v) A, V. N0 g& iA year ago these things would have spiked the price of crude oil by at
( l6 d. [# B3 o/ ?: F1 U) T- Gleast $50.00 per barrel. Today, oil price declined by a record amount.
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8 U, A  ]) s! |  G2 L% P/ c! F! eThere are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:
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# @7 ?3 i. q$ A  S9 ^" s1. New oil has been found in Canada, Montana, North & South Dakota and
, V3 c5 T6 e$ ^: v2 k( lin the ocean near Brazil. Each of these oil fields has more oil than
2 ], M5 |3 n( Y  a7 V8 ?/ UArabia.


' Y$ u$ ]2 j) A" @2. New natural gas has been found in Pennsylvania and West Virginia.
/ L3 v  K) h1 j6 Q/ u& ~This is the largest find in North America.


# u+ J) b& w5 d- t2 F" t/ Z* F3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.


4. Production of bio-fuels is beginning to reach critical mass. Bio
fuel is being produced from many plants and algae. The production
0 \+ n1 L6 j1 g1 A! J2 ^potential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.
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5. Virtually every restaurant in the US and all food processing plants
1 K$ L% C: {4 K; A, H* [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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, K- W3 P/ N" B3 u5 @6. There are 99 nuclear reactors in various stages of planning and
; s* z1 z) r7 o) cconstruction around the world at this time. Several hundred more are
( a8 M) k4 F6 }, @% d+ S9 J* zexpected to be built in the future. Much of the energy they produce
" y; G/ ^1 L: Wwill replace oil.

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7. Every company in any form of transportaion business is replacing
older equipment such as trucks, airplanes, train engines, ships, etc.
; x, l% |, ]% }with new more fuel efficient equipment. Airlines and railway companies
' q" Q9 {' Y% b; @7 Uare experiencing 20% to 25% better fuel econony with the new
equipment.
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Airlines are flying airplanes with bio-fuel. They are finding the bio-
& D! M  @, d. yfuel is cleaner and performs better than jet fuel.
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, O; T; _# {/ [; L, ?9 G8. 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
5 p- q$ I/ K  m3 }6 i  joil.

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9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
% ]9 }! O" }' @) _oil wells.


, F9 ~  u/ T, @% K. z10. Solar, wind and ocean energy is displacing oil as an energy
- a' C2 ~3 t3 a/ C! m2 \source. Three new wind turbines are being erected every day in the US.

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Each of the above by itself will not make a large difference in the
* u8 |% R( v. R' O$ Zprice of crude oil but the sum of all of them together is world
: k. X2 ^' T! B! m7 U& j+ Zchanging. The important thing is that OPEC no longer has the ability
: c( h+ I6 |1 j3 F$ Tto control oil prices.

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1 W( l. d3 e% iWith the above scenario, I still believe that there are under
% W/ t/ g/ J) hperformed OIL companies and probably they are yet to get the justified
value .....
# w. E4 A8 S3 d; g4 pIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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) R+ X" @$ `3 O; S4 nThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
" B2 l  _. |4 t2009 ... FYI-Only