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Is there anyway oil is not a good investment?

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Posted: #1
Unless an alternative energy source is created in the very near future... I don't see how gasoline / oil prices don't expolde in the near future?
 
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Posted: #2
I think oil is fairly priced (actually, cheaply priced) now. Close the Straits of Hormuz for any length of time and yo have much higher prices.

 Front page of Financial Times yesterday noted a fundamental change in Saudi oil destinations, from US to China.While most of our imported oil comes from Canada, that trend will continue and remain a factor not really not in play before.

  Demand from China and Asia as a whole will prop up any decline from the US, and at best I think one can hope for a flatline demand from a flat non recovery US
 
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Posted: #3
Oil is a good investment.  Stick with one that pays a good dividend; personally I like BP at near 6% yield.   They're paying you just to sit on the stock while the global economy recovers...  as slow as that will be .

None of the alternative energy sources will work its way into mainstream for the next 10+ years.  Natural Gas makes the most sense because of its abundancy and near 50% cleaner than gasoline, but some dipshit in the Oval Office won't endorse its use.
So, sit on oil and reap the rewards... because the big cry for alternative energy won't come again UNTIL it's too late ;  i.e. oil hits the $120s-$150s.

 
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Posted: #4
Oil is a good investment for 2 more years but maybe less than last few years.  Common sense and necessity will eventually make solar power and wind power and nuclear stocks world wide plays for the long term.
 
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Posted: #5
Two more years? Are you kidding me? Really, no disrespect at all, but you might want to look at how Mexico is going the way of Britain, and will soon be an oil importer, not exporter.Cantarell is rapidly depleting...

 You might want to consider that the Chinese and Indians don't give a dead rat's ass about how their new cars are powered. 

 Consider, higher oil prices and environmental activism work well together.Throw in the fact that the easy oil has been extracted, the only thing that completely derails the price of oil as a commodity is when gasoline hits $5 a gallon US and kills the non recovery recovery here.

 But when a dollar becomes worth 20 cents, that means higher prices in dollars...

 There is also an illusion that the US, an entire society built on cheap gas and suburban commuting, can miraculously reconfigure in a matter of a couple of years. Wish it were true...it isn't.







 

 
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Posted: #6
Quote Originally Posted by Vermeer:

Two more years? Are you kidding me? Really, no disrespect at all, but you might want to look at how Mexico is going the way of Britain, and will soon be an oil importer, not exporter.Cantarell is rapidly depleting...

 You might want to consider that the Chinese and Indians don't give a dead rat's ass about how their new cars are powered. 

 Consider, higher oil prices and environmental activism work well together.Throw in the fact that the easy oil has been extracted, the only thing that completely derails the price of oil as a commodity is when gasoline hits $5 a gallon US and kills the non recovery recovery here.

 But when a dollar becomes worth 20 cents, that means higher prices in dollars...

 There is also an illusion that the US, an entire society built on cheap gas and suburban commuting, can miraculously reconfigure in a matter of a couple of years. Wish it were true...it isn't.







 



... that's exactly right.  For all the talk we hear about the U.S. wanting to go "Green" , we have developing countries like China & India that could give a rat's ass... and will more than make up for any fossil fuel demand  we do end up  transitioning to "Green" , renewable resources. 

So , the big picture is that world wide oil demand will continue to increase for decades into the future.  It is  expected to play a smaller role in our future in the US, but the developing countries are where the real growth is at... and they will continue to consume oil in growing quantities.. particularly China. 
 
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Posted: #7
And lest we forget, we have had  4 decades since the oil embargo? In case you think the government can solve things, go back over the mission of the Department off Energy. Real effective, and  you can enjoy paying federal pensions for their doing... absolutely nothing useful.
 
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Posted: #8
I currently own PXJ.


Fund Strategy

The investment seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of an equity index called the Dynamic Oil Services Intellidex(SM) index. The fund normally invests at least 80% of total assets in common stocks of companies that assist in the production, processing and distribution of oil and gas. In pursuit of its objective, it may invest at least 90% of its total assets in common stocks that comprise the Oil Services Intellidex. It is nondiversified.


 
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Posted: #9
Oil is not going anywhere for ATLEAST 25 years.
 
Captain
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Posted: #10
Care to explain your logic on that one, Guy Anderson..  ?
 
Prospect
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Posted: #11
Why dont you tell me how ANY alternative is going to replace oil in a shorter period of time?
 
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Posted: #12
I think we're on the same page here, Guy...  I interpreted your comment to mean the "price" is not going anywhere in the years ahead...   my bad.  


 
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Posted: #13
LOL! I was a little confused there after I read a few posts earlier where you appeared to have the same analysis I had! 

 
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Posted: #14
Quote Originally Posted by Rush51:

Oil is a good investment.  Stick with one that pays a good dividend; personally I like BP at near 6% yield.   They're paying you just to sit on the stock while the global economy recovers...  as slow as that will be .

None of the alternative energy sources will work its way into mainstream for the next 10+ years.  Natural Gas makes the most sense because of its abundancy and near 50% cleaner than gasoline, but some dipshit in the Oval Office won't endorse its use.
So, sit on oil and reap the rewards... because the big cry for alternative energy won't come again UNTIL it's too late ;  i.e. oil hits the $120s-$150s.



question, do you or anyone think it's a good time to start thinking about a position in natural gas?

 
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Posted: #15
Definitely, 2169...  Think of it as a "long-term" position, too, because like I said above... Obama is not a big fan of natural gas, so there may not be too much enthusiasm for Nat. Gas for the next couple of years... but there are too many advantages, and it makes too much sense for Nat. Gas to be ignored for much longer. 

Look at this way.  A couple of the big integrated oil companies are already diversifying their companies by becoming more exposed to Nat. Gas
(Exxon bought XTO Energy  and    TOTAL (big French oil company)  has joint venture w/ Chesapeake).  

https://www.chk.com/news/articles/pages/chesapeakeenergycorporationannounces$225billionbarnettshalejointventurewithtotalepusainc.aspx


Chesapeake is a big Natural Gas player that has struck similar deals with BP.


 
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Posted: #16
Quote Originally Posted by Guy_Anderson:

Oil is not going anywhere for ATLEAST 25 years.


You're claiming there's 25 years of Oil left?

Nat Gas is a shit investment because it's so hard to store it, and there's so much supply

Chindia is steaming, and ramping up oil demand. I keep reading that CHina is a bubble waiting to pop, but what if it's even half real?  If china builds ground for domestic demand/consumption, our near future bumpy road,,,,,,is gonna be lots bumpier
 
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Posted: #17
Quote Originally Posted by Rush51:

Definitely, 2169...  Think of it as a "long-term" position, too, because like I said above... Obama is not a big fan of natural gas, so there may not be too much enthusiasm for Nat. Gas for the next couple of years... but there are too many advantages, and it makes too much sense for Nat. Gas to be ignored for much longer. 

Look at this way.  A couple of the big integrated oil companies are already diversifying their companies by becoming more exposed to Nat. Gas
(Exxon bought XTO Energy  and    TOTAL (big French oil company)  has joint venture w/ Chesapeake).  

https://www.chk.com/news/articles/pages/chesapeakeenergycorporationannounces$225billionbarnettshalejointventurewithtotalepusainc.aspx


Chesapeake is a big Natural Gas player that has struck similar deals with BP.




I mean, I  think its a good idea too.  exxon likes it long term, why shouldn't I follow?

 
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Posted: #18
I been pumping CHK for a few years...trade it for myself and my parents...jump in around $22-$23 and jump out around $28...this is a great stock to trade
 
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Posted: #19
Quote Originally Posted by 2169:



I mean, I  think its a good idea too.  exxon likes it long term, why shouldn't I follow?



Exactly right... these companies in the know like Exxon are "tipping their hand" that Nat. Gas makes sense for a long term investment.

Small Nat. Gas companies could be vulnerable in this environment  because of too much supply and not enough demand, so be careful what type of Nat. Gas company you invest in.  

Bigger Nat. Gas. players like Chesapeake are well positioned to weather the storm with their strategic partnerships with big oil companies.    This will help keep them going while Nat. Gas trades at depressed levels like right now...
 
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Posted: #20
Thanks Rush.  Looking at a list of players now.
 
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Posted: #21
Be easy- No, I am NOT claiming there's only 25 years of oil left, I'm saying that 25 years is the EARLIEST any alternate energy source would replace oil.
 
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Posted: #22

saw a couple of energy "anal"ysts on both CNBC and Cnn saying that oil could very well be $100+ by this summer.

IF we get another major price spike like 2008, then it's "look out below" for the stockmarket again.

no matter what people say, I think that was the catalyist for the market tanking because 1) it killed the SUV and big truck market in the auto industry 2) clobbered the transportation companies esp the airlines 3) is a huge factor in "cost-push" inflation just like in the late 70's.

 
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Posted: #23
China continues to make friends "at any cost" with some of our Adversaries... First Iran & now a $20B deal with Hugo Chavez of   Venezuela. 
They continue to go to great lengths to secure oil reserves around the world.  
As mentioned earlier , for all the "Green" talk we hear in this country about trying to ween ourselves off oil, developing countries are becoming increasingly dependent on foreign oil.
 
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Posted: #24
Quote Originally Posted by Rush51:

China continues to make friends "at any cost" with some of our Adversaries... First Iran & now a $20B deal with Hugo Chavez of   Venezuela. 
They continue to go to great lengths to secure oil reserves around the world.  
As mentioned earlier , for all the "Green" talk we hear in this country about trying to ween ourselves off oil, developing countries are becoming increasingly dependent on foreign oil.


I thought Chavez needed the money.  What was the deal? 


 
 
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Posted: #25
Quote Originally Posted by 2169:



I thought Chavez needed the money.  What was the deal? 




You're right.. Chavez does need the money.. 

Just as important, China is making sure they secure energy supplies around the world..

https://www.nytimes.com/2010/04/19/world/americas/19venez.html





Memo to our "Community-Organizer-in-Chief" ;

 Good luck in ever getting China to agree to sanctions on Iran.    The Chinese will only put their foot down so far.. they don't want to screw up their business relationships as it relates to oil supplies.
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