Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
- z# v) S# |8 h. qcompanies producing Jet fuels but Biofuels. Also no wonder if some of
these oil producer will go bankrupt or out of the business even if
; E' T# e: _( j% M) gcrude prices improves. This implies also to good names such as Shell,
  Y2 ^( L% q1 j: HEXXON, BG, BP, Cheveron ....xyz.. oils

0 S+ P) q( l9 w; Q  ORecently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
& Q# b$ M9 s" r5 d( p5 GA year ago these things would have spiked the price of crude oil by at
; p* V& h* z* \% gleast $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
' E% @" e. E) F. M, {1 Wof so much news. These reasons are:


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
% N# ?* ]) ]8 T, ?2 K. [: T; JArabia.
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8 K, f+ b1 f! ?2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.
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; L# `4 ~) f+ P3. New methods of injecting CO2 and surfactants into oil wells is
3 S) J0 O! Y3 _  r" Obeing used to double their output.

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4. Production of bio-fuels is beginning to reach critical mass. Bio
7 N% ?+ z6 s& t4 j8 Hfuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.

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7 K3 X8 s/ a7 a; |) ^" f' `# s- ?5. Virtually every restaurant in the US and all food processing plants
+ m! P( l& m. q. f0 p8 lare now selling their used oil to bio-diesel producers. Every pork,
$ @4 Y- ^3 }/ gcattle, 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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- w! Q2 d% `9 W% s1 c- v" C6. There are 99 nuclear reactors in various stages of planning and
. f) I6 u6 E% ]8 s% s1 w- gconstruction around the world at this time. Several hundred more are
8 t% l  u; v2 k: j0 R2 Z7 j3 @" Q9 x* rexpected to be built in the future. Much of the energy they produce
will replace oil.
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) a  j7 C' y& ^' h+ L: A  d7. Every company in any form of transportaion business is replacing
6 B6 R: O" p& z, K2 q( Z: kolder equipment such as trucks, airplanes, train engines, ships, etc.
: R1 a+ l/ u8 D) p  P, Y) nwith new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
equipment.
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" j  Q. {: E# WAirlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.
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8. Cities and counties throughout the US are selling the rights to
  T# Z* ?& B3 }9 Q1 r4 y2 Ucapture methane gas from landfills. This is a huge source of gas
  R# X9 @5 y" Favailable at very little cost or risk. The gas is displacing crude
, ^; a& \, Y3 soil.
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( X0 H6 @7 S4 m* `$ d4 M9. Coal is being transformed into a clean burning liquid fuel. The CO2
1 O% p- a6 E( Q# Iproduced as a byproduct is sold to oil companies for injection into
6 r5 w. c( D$ n  O3 d2 F( a: X, |oil wells.

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10. Solar, wind and ocean energy is displacing oil as an energy
- \9 J4 @+ v' d  S' F( }source. Three new wind turbines are being erected every day in the US.
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$ X4 r9 t' z2 p  m+ ?* rEach of the above by itself will not make a large difference in the
5 a1 j( W% `# g9 h& X+ |# a8 [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
to control oil prices.


+ ^3 a  N! Z8 J! T( b; v' ^2 K  XWith the above scenario, I still believe that there are under
* f+ A: G6 h) v1 Kperformed OIL companies and probably they are yet to get the justified
& x* ~6 v% i& `! x* l9 t9 E/ g  b3 Q( @value .....
. Y& i; x; ?# ^* v1 A% i' }IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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; J! {4 [7 M. ?8 ]5 B8 mThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only