Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
3 Y, W' ^6 v, S, ?8 ~expect much from Crude Oil producers and future is not with the
* [4 a( h0 V5 Y6 e$ |# ~3 S6 }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
4 {6 {, c8 R. z" @crude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils
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' i) n) g8 p0 A) ?) u7 H- G8 E, ZRecently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
4 g/ e( X+ T/ i1 d" O4 f3 tA 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.


There are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:

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) s# P! t; }$ _4 a1. New oil has been found in Canada, Montana, North & South Dakota and
, m& J5 H; m/ {0 @2 U# H/ Gin the ocean near Brazil. Each of these oil fields has more oil than
2 L/ c$ V' H6 H! `$ w! PArabia.
7 o2 v8 |9 C6 z

2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.
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& m# x; m- `, a+ T; y7 H% {3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.
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4. Production of bio-fuels is beginning to reach critical mass. Bio
: f5 p. ^  Z" Ofuel is being produced from many plants and algae. The production
( R3 T  c7 `& E$ Bpotential 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
are now selling their used oil to bio-diesel producers. Every pork,
# j4 b  V; q5 jcattle, turkey and chicken processing plant will soon sell their fat
to bio-diesel producers. One pork processing plant in Oklahoma is
' w7 t4 i) Y( w2 i# wproducing 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
5 r* m& i6 g# x% h; R# E+ Q) iconstruction around the world at this time. Several hundred more are
expected to be built in the future. Much of the energy they produce
8 O& N+ J. j0 z( U9 z& M: Mwill replace oil.

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) G: w* F9 |9 R7 _7. Every company in any form of transportaion business is replacing
! g# [+ F/ l; Lolder equipment such as trucks, airplanes, train engines, ships, etc.
with new more fuel efficient equipment. Airlines and railway companies
8 U* O& S( U; X$ |' o. j/ e' q5 {are experiencing 20% to 25% better fuel econony with the new
+ P* _+ t  U" W; G# y) gequipment.
) S7 H- Z2 Q7 \: [
2 s/ Y* x/ `. s+ b
: e. j' y  o% C* a2 @Airlines are flying airplanes with bio-fuel. They are finding the bio-
; {5 N& m5 k2 t! ]. ?* L  ?fuel is cleaner and performs better than jet fuel.

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# i$ c, ?6 b$ W7 ~  M7 `) `# p8. Cities and counties throughout the US are selling the rights to
( q6 ?( h* W1 n* x+ `5 mcapture methane gas from landfills. This is a huge source of gas
available 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
produced as a byproduct is sold to oil companies for injection into
: ]. z& U" D) F3 F9 A* I' m0 Ooil wells.

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10. Solar, wind and ocean energy is displacing oil as an energy
! Z. M6 m& y  W+ _/ tsource. 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
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
- ?  c7 T! K* X* ]- \: }to control oil prices.


With the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
8 t- d6 ?* R* s! X7 svalue .....
7 {: Z. O+ r+ o4 |* i! zIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...


/ r+ B4 k* i7 A4 i) C9 q: ?The above articles are from WSJ .............PUBLISHED ON 9TH JAN
! Z  ^2 J8 o+ i% j! q5 V2009 ... FYI-Only