On e-catworld.com, BroKeeper wrote, “Perhaps it’s time to consider purchasing petroleum corporations’ put stock options. ;-)”
‘Best watch your buys and sells. I have been brainstorming this for a long time. While the long-term future of petroleum is sorrowful, there are regions of the petroleum industry that are going to blossom before they go belly up.
Watch my thoughts closely for a minute:
Making long-term investments in petroleum will be nuts as soon as LENR obviously exists. There are a bunch of these, such as the building of new refineries, and the building of pipelines, ships etc. All companies, therefore, that focus on the long term side of the business will be in trouble.
However, LENR will not impact the usage of petroleum products for a few years to come. It’ll start with heating fuels (natural gas, fuel oil). It’ll extend more slowly into all areas of transportation. However our petroleum needs are growing. China and India are increasingly their consumption of petroleum.
A third factor will play in. Countries, like the OPEC nations, will realize that their gold mine has a lifespan. They will want to sell their product as fast as they can, so the price of oil will go down. This will put downward pressure on the price of gas, increasing usage.
So long-term investments in petroleum production won’t be increasing available supply. The raw materials will be cheaper. Demand will be up. Who will benefit? The refineries, the finished product producers, I expect. They will be able to get their raw materials for cheap, while charging more for their finished product.
This analysis, I believe, must be factored into any investment decisions.