How Many Times...? Black Gold

How many times have you said to yourself, why didn’t I invest in that when the opportunity was ripe? The kind of thing most of us have said about the internet in general or Google or Microsoft or Berkshire Hathaway. Looking back, with the advantage of hindsight, so many investment opportunities seem so obvious. There is one now, that many have already become wealthy from, that remains an amazingly attractive opportunity. And, it is not a discovery; it is simply one of the best and most obvious long positions one could have at this time. No surprise – it is OIL.

We can talk and even do something about alternative energy sources. That is all good and some day they may make a dent on demand. But now, and for some time to come, oil and natural gas will be the principal sources of energy fueling the economic engines here and abroad. It is a better and safer and surer investment than gold, and a whole lot better and surer than almost any other investment available today.

What is obvious is that demand will be high for as far out as one can look, and more importantly, demand is increasing and will continue to increase dramatically year after year. China alone will push demand to heights we have not seen before. There is no question, whether the dollar continues to be weak or not, that we will soon see $100 oil, and $100 to $200 in not too many years out.

So, I don’t claim to have discovered anything here. Oil is not new; oil is not sexy. But it has long been a killer investment; it is so now too. It is not something many people like to talk a lot about just now – what with its implications for climate change. But, it is here to stay for some time and not enough is being made about centering, not just including, oil in one’s investment portfolio. There are so many choices, beginning with XOM, that one could consider. There’s, for example, COP. MRO, OXY, HAL, APA, to name just a few others. And, there are those Canadian oil trusts that also provide terrific income. It is very hard to go wrong in this sector, especially if you take a long position and just sit back. Trying to play this sector by the day is a fool’s errand. But the opportunity to grow wealth significantly over the next couple of years is superb.