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
% c- v* f" `" `. L' j, ^companies producing Jet fuels but Biofuels. Also no wonder if some of
these oil producer will go bankrupt or out of the business even if
0 q3 p( s- [: _4 F# X! Pcrude prices improves. This implies also to good names such as Shell,
% q% x* `5 b9 P4 t- YEXXON, BG, BP, Cheveron ....xyz.. oils
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Recently OPEC reduced crude oil production twice over just a few
- z5 F% E$ i+ y* d% F9 amonths. 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
of so much news. These reasons are:

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1 I# ~( g: V" N7 V1. New oil has been found in Canada, Montana, North & South Dakota and
1 K. |; S  W" T. X/ min the ocean near Brazil. Each of these oil fields has more oil than
* t0 X4 P3 l7 Z# k$ I0 s/ K2 uArabia.
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2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.


8 h3 ^6 E# }7 U1 t3 o) G3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.
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- l% o- ?5 ^7 ]4. 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
$ F, U9 o/ o2 @) s5 Xracing to produce bio fuels.
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5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
cattle, turkey and chicken processing plant will soon sell their fat
* y& y! _8 f6 Xto bio-diesel producers. One pork processing plant in Oklahoma is
! q1 @0 k$ V$ }/ M' k) Dproducing 30,000 gallons of bio-diesel per day from pork fat.


  p4 M; [. _0 P8 ?8 {7 F9 C: z1 B" y6. There are 99 nuclear reactors in various stages of planning and
0 l0 p! o8 U7 f* }construction 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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* Q6 R  j" ~6 k  ?, `7. Every company in any form of transportaion business is replacing
older equipment such as trucks, airplanes, train engines, ships, etc.
with new more fuel efficient equipment. Airlines and railway companies
4 w; T; j- }, M( D+ I: hare experiencing 20% to 25% better fuel econony with the new
4 o- X2 @/ J$ ?7 t; [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.

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8. Cities and counties throughout the US are selling the rights to
4 R7 I! x- y. Vcapture methane gas from landfills. This is a huge source of gas
1 c& ?2 G! d! W2 Davailable at very little cost or risk. The gas is displacing crude
oil.

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: H. }! X$ `+ D  A% W" e% y9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
oil wells.
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' z" ~# N% D2 v' ^( B: ?10. Solar, wind and ocean energy is displacing oil as an energy
" j! i  k9 A) O) \1 D3 D3 R. F, Fsource. 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
7 s! J7 E" r! V3 Y6 fprice 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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5 K( Z# k) @6 `2 d$ CWith the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
9 R$ ~' a/ l: o8 ]# {value .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...

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- f1 h$ s5 ^6 d# ?; ~, WThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only