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BlindSkuirrel (63.51)

OIL MANIA

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June 20, 2008 – Comments (2) | RELATED TICKERS: DOM , TELOZ

Everyone is jumping on the OIL Mania Train.  Most think there is still gas left in the tank.  A significant number of articles are pointing toward even higher prices through summer and post-summer.

 

If this is the last chance to get in, there may be more money to be made here.  Is this the GOLD play of the century or the dot-com bust of the century?

 

Happy Investing!

2 Comments – Post Your Own

#1) On June 21, 2008 at 1:59 AM, ricoy5 (26.27) wrote:

That's a very good question... and a lot of money to be made (or saved) by being right, with good timing.

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#2) On June 21, 2008 at 2:10 AM, GreenMycon (< 20) wrote:

It's not really just Oil Mania.  Looking at oil solely as a commodity and something that is a trend is probably a false assessment.  It's more of the upcoming energy dilemma and viable solutions and alternatives.

The world will continue to be dependent on energy for an indefinite period of time, and based on the exponential trend of population growth in addition to exponential energy growth, companies will crop up to cater to this demand.  Right now the oil companies are in the absolute best position to be able to resolve this upcoming issue.

 To look at oil companies solely as providers of a commodity is fairly incorrect.  E&P companies fulfill that niche, but the larger oil companies out there should not be going anywhere for a very long time.  More important than the commodity is the infrastructure that they have available and know how to work with.  When people talk about moving over to Hydrogen as a fuel, o&g companies will still stand to prosper from this.  Even if oil is no longer used as a transportation fuel, there is still the increasing growing market of consumer products (which surprisingly all need oil.)

 I'd say that investing in a large diversified oil company or refinery will be one of the best possible investments anyone could make at this point in time.  Not only will there be about 10 years of continued reliance on oil for transportation, but these companies are also large enough to purchase any upcoming solutions and become energy companies in the true sense, rather than just oil companies.  If you can stand the upcoming volatility (there will be a lot), the earnings you can get off of these companies will be great in the long run.

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