Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
; Q5 j, R$ a4 R- ?expect much from Crude Oil producers and future is not with the
companies producing Jet fuels but Biofuels. Also no wonder if some of
' u8 Z/ T2 \( m5 A3 nthese oil producer will go bankrupt or out of the business even if
0 L* Z# w, F! l8 }) t( |- V5 b# |crude prices improves. This implies also to good names such as Shell,
) X% f2 R0 L* ^EXXON, BG, BP, Cheveron ....xyz.. oils
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3 @5 A! @) c3 }0 @7 wRecently OPEC reduced crude oil production twice over just a few
# q. G2 S1 A# q& L: {) T1 Jmonths. There are three wars going on in Gaza, Iraq and Afghandistan.
. W' `7 [! _$ E. _) f* @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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8 c: P/ \0 _7 f: [4 [$ uThere are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:
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/ J5 B1 P: j# F& s$ ?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
, l; @+ R% h7 aArabia.

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2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.

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2 i2 m+ }9 k4 i+ S3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.
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& z3 y- L6 p6 ~; ^: m4 ?9 p4. Production of bio-fuels is beginning to reach critical mass. Bio
fuel is being produced from many plants and algae. The production
3 {( Y: p5 `0 y! Xpotential per acre in some cases is astounding. Many countries are
8 m+ P! x" F3 V) E. z% pracing to produce bio fuels.


5. Virtually every restaurant in the US and all food processing plants
. ~$ y# H+ M7 ]$ U& B1 h- _; {4 xare now selling their used oil to bio-diesel producers. Every pork,
4 n/ y2 z! o+ }& {! _cattle, turkey and chicken processing plant will soon sell their fat
* @, @% w0 C6 u  j* W6 Jto 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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6. There are 99 nuclear reactors in various stages of planning and
0 R1 M8 G& P% |8 x0 U8 Vconstruction around the world at this time. Several hundred more are
expected to be built in the future. Much of the energy they produce
will replace oil.

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7. Every company in any form of transportaion business is replacing
& {% r5 w( n- x# d$ Wolder equipment such as trucks, airplanes, train engines, ships, etc.
with new more fuel efficient equipment. Airlines and railway companies
. K! j5 U: D9 x( x) j- Aare 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-
fuel is cleaner and performs better than jet fuel.


8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
9 a7 Y, U* P2 ?" h1 e, Cavailable 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
  N7 C& n% w2 b  Z+ ^0 J, z; J! vproduced as a byproduct is sold to oil companies for injection into
oil wells.
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/ n' h, S" l- Y3 Q10. Solar, wind and ocean energy is displacing oil as an energy
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
; J$ V; k5 p& T% U8 aprice of crude oil but the sum of all of them together is world
; p% g. o( z3 L9 dchanging. The important thing is that OPEC no longer has the ability
7 H1 L# V3 H$ u& n* Kto control oil prices.
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With the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
0 r8 `  H- @( x7 R1 ]4 Svalue .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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The above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only