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
companies producing Jet fuels but Biofuels. Also no wonder if some of
; v% x# ]( a: I0 q% a3 _these oil producer will go bankrupt or out of the business even if
) V* `6 E! ?/ \, g  ?+ _4 hcrude prices improves. This implies also to good names such as Shell,
1 ?/ w- G, {# h: u' p5 iEXXON, BG, BP, Cheveron ....xyz.. oils

5 f/ f3 `+ F1 b, W" Y% FRecently OPEC reduced crude oil production twice over just a few
! I, i  N8 J% g1 i  a' Y- ^months. 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
1 Z1 Z, T4 G& oleast $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
( Y" H7 e' v$ w9 r/ {% U/ Zof so much news. These reasons are:
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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
/ m! S* e! Q2 z! O7 _Arabia.
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2 K' x+ X- K* h) z0 f2. New natural gas has been found in Pennsylvania and West Virginia.
& F6 t4 c& F1 K( @& hThis is the largest find in North America.

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# j, ]+ n1 K1 _! o3 l$ a3. 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
fuel is being produced from many plants and algae. The production
8 d' |" m+ c: B7 B2 a1 B0 {potential per acre in some cases is astounding. Many countries are
; F, E& E% U) |% Tracing to produce bio fuels.


5. Virtually every restaurant in the US and all food processing plants
: k0 `# k" |" ^  {& y) W6 r3 iare 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.


6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
1 E: e: J  V) r1 c' lexpected to be built in the future. Much of the energy they produce
) _, I$ B- j* U) gwill replace oil.


7. Every company in any form of transportaion business is replacing
- r4 G' p0 v9 Zolder equipment such as trucks, airplanes, train engines, ships, etc.
7 @! T0 X6 v! L6 w+ }with new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
) n* l3 n6 D$ P3 C2 ~) _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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" a9 Y  K* B6 r' y$ b8. Cities and counties throughout the US are selling the rights to
- K& \2 X2 k2 J: o' p3 lcapture methane gas from landfills. This is a huge source of gas
3 i6 d6 a) Z" @) d. b5 m! k; i3 X/ Xavailable 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
, O8 R' u7 _: S8 y' fproduced as a byproduct is sold to oil companies for injection into
* r) V2 h  Y" v# Uoil wells.
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, p  }  z7 G# ?5 K# k% X10. 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
2 @. k3 C8 W6 O. Z6 vprice of crude oil but the sum of all of them together is world
. @* ]: S" O# a& q8 hchanging. The important thing is that OPEC no longer has the ability
5 \. P( Z, I4 U, i# nto 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
value .....
$ J" V- w- h9 \1 l& S8 K- OIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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( ?% M& d; _% yThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only