SPDR S&P Oil & Gas Explore & Prod. (ETF) (AMEX:XOP)
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Has anybody heard anything about the Middle East? Last I knew, we have at least three countries in the process or already finished overthrowing their rulers. They are protesting and so things are getting very close to ugly in a couple other countries as well over there. That area of the world produces somewhere in the neighborhood of 80% of the world's oil. With all of the civil unrest going on, how are they supposed to keep producing oil at the levels that they have been? Hopefully this is a short term problem. I am not hoping for $10.00 per gallon gasoline, and I seriously doubt if it will get anywhere near there, but I am ready just in case. I bought 20 gallons of gas for my motorcycle. That will hold me through for a month. Just in case.
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I rhink that the middleeast countries have a good chance of becomming radical musulm states and oil will be used asw more of an wepon to hurt and punish the west until we get tired and decide to drill for the billions of barrels we control and the whole dynamic changes.
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Increased demand for energy and petroleum products will occur before petroleum supplies increase, causing an increase in the prices of petroleum resources higher demand for oilfield equipment and services.
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Good play on natural gas plus it's backed up with oil and exploration
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Great recovery play. Excellent long-term outlook doesn't hurt as emerging economies will continue to rely heavily on fossil fuels.
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There's still a LOT of room to run in energy.
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As the economy recovers and spending increases, fossil fuels will be in greater demand than ever. There is a push to "go green", but that is many years off and developing countries don't have the luxury of indulging in eco-friendly practices.
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Generally bearish on commodities. I expect the US Gov't won't be able to increase the money supply adequately to account for the tremendous loss of credit-based purchasing power. A reduction in the real money supply (including credit) will reduce economic demand and drive prices down. Commodities should correlate more with the dropping prices than companies of the S&P who have more to offer than just a particular asset. This should equal points in CAPS.
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natural gas, maybe the northeast should convert from home heating fuel to natural gas
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Oil exploration critical to economy during middle east turmoil & increase demand for world.
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etf for major oil companies (diversified and international) Need i say more?
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Same as last summer, gas goes up Exxon cashes in on the poor.
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With the recent decision to keep oil supply at current levels after the recently concluded OPEC conference, it’s good news for the oil sector. Moreover the conference observed that the world economic performance in 2007 to remain relatively firm with early indicators showing that the market remains well supplied with crude oil and would experience overall oil market volatility.
The SPDR Standard and Poor Oil & Gas Exploration & Production Select Industry Index is an equally weighted index that represents the oil and gas exploration and production sub-industry portion of the Standard and Poor’s Total Market Index. Performance of the fund in the previous years has been good with average annualized return for the past three years at 35.65%. With net assets of approximately $17 million it is trading attractively at a price to book value ratio of 2.1 and price to earnings multiple hovering around 11.
The increased capital spending capital spending by major oil companies and state-owned oil companies represents huge opportunities for drilling, exploration, refining, marketing and other related services. Moreover optimization and other technologically advanced services represented a huge demand for low cost services in drilling that would result in efficiency and cost savings. Increasing field depletion rates and high day rates favor the oil drilling companies. Endorsing the same there are more than 100 oilrigs construction in the pip line and huge scope rests in deepwater and mid water semi submersible market.
ExxonMobil tops the list with huge potential as it is investing in more than 20 new projects around the world over the next three years that should add 1 million barrels of oil equivalent per day to its volumes at peak production. Other companies in the list are Conoco Philips, Chevron, Sunoco and Valero that have excellent growth prospects, making it a worth investing fund.
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energy is their business and they do it well
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