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Post by edwardj on Nov 20, 2009 7:53:21 GMT -6
Oil investments have always taken the fascination of the investor community. People invest in oil and gas sector as it offers a great deal of return over investments. The ROI from the oil sector is calculated to be more than 650%. As soon as an oil well is hit, it starts producing benefits, way above the cost of initial investment. Oil and energy investment can be done in two ways. First is in the form of exploration. This is a bit of a risky investment as the new reserves are to be discovered. The invested amount is used in discovering new reserves of oil and gas that may result in profits. But when there is a delay in finding the correct source, it may result in losses. Exploration is ideal for those investors who have the money and are willing to accept such risks. Another form of investment in oil and energy sector is through buying of company stocks or joining a mutual fund. This form of oil and energy investment carries lesser amounts of risks to the investors.
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Post by agito on Dec 9, 2009 18:56:08 GMT -6
even though this post comes across as spam, I wanted to share something i heard on bloomberg yesterday.
An analyst was saying that's become a game where mutual funds are now investing in renting oil tankers. I'll let you guess what the angle was on that, and why that particular analyst came to the conclusion that the mutual funds are going to get burned.
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Post by graybeard on Dec 12, 2009 10:04:16 GMT -6
Banksters invested in oil stored in tankers last winter, betting that prices would rise above the then $50/bbl.
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Post by jeffolie on Dec 12, 2009 11:16:45 GMT -6
The use of energy has increased the improvement of life experienced in the developed countries over the last 150 years. Electrification spread to even the countrysides of developed countries in the 1930s thus changing completely lifestyles. Life for more than a billion people in the countryside in China and India is 40 years behind the use of energy in the developed countries and rapidly making up ground.
Investments in oil, gas and coal are experiencing the benefits of increased demand in the BRIC countries (Brazil, Russia, India, and China). As in most investments, the state of general economic conditions as well as manipulation of energy prices and thus profits reflect in the sucess or failure of timing energy investments.
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Post by fredorbob on Dec 12, 2009 16:38:07 GMT -6
Remember what happened last time when the DOW crashed from a high of 14,000? A lot of people sunk their money into oil and then lost big time because recession=less oil consumption. I thought it was funny
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