Peak Oil and investing in oil companies and or other companies

[Tornado69]

With peak oil rapidly getting closer, what is your opinion of buying stock in companies like Exxon and Halliburton ? Do you think the stock prices will shoot through the roof once it hits and everyone is in a mad scramble to get some or will the stock prices plummet because everyone realizes its not going to be around forever and the bad news will cause the prices to go down ? I'm assuming basically investing in other publically traded companies might not be a good idea either because oil prices sky rocketing is going to hurt the economy and will probably drop all stock prices of other companies. Agree or no ? I've been learning a lot about oil lately but am unsure what to do with extra income I have sitting around and whether to invest or not. Anyone think basically we are on the verge of a depression worse than the 30's ever imagined ?

[DcifrThs]

ya know...i was just thinking that i haven't seen any peak oil posts in here or politics.

Barron

[wiseheart]

http://finance.google.com/finance?client=ob&q=XOM

Granted, we have been in a bull market up until late, but I would say Exxon's stock has shot throught the roof. Personally, I see further upside, but not sure to what extent. Unfortunately, I chose to play small cap oil stocks/oil shale, which currently has done nothing much over the past 2 years.

[Fishhead24]

I don't want to sound like I'm touting something here, as I'm only stating what I believe is a great investment option(however speculative it may be) considering the high price of oil and what Tornado69 asked. That investment is ethanol stocks such as Pacific ethanol, Archer Daniels, and Gulf Ethanol as Americans, with the help of the government, push themselves away from the oil dependency gripping this country.

[tolbiny]

[ QUOTE ]
I don't want to sound like I'm touting something here, as I'm only stating what I believe is a great investment option(however speculative it may be) considering the high price of oil and what Tornado69 asked. That investment is ethanol stocks such as Pacific ethanol, Archer Daniels, and Gulf Ethanol as Americans, with the help of the government, push themselves away from the oil dependency gripping this country.

[/ QUOTE ]

Ethonal is heavily oil dependent right now, fertilizing fields without crop rotation takes huge amounts of energy to fix nitrogen and to transport that fertilizer to the locations. (this is for corn ethonal not sugar cane). When peak oil hits corn thonal will be such a big loser that it will collapse without huge gov subsidies... which isn't out of the question.

[wiseheart]

Not to mention that my ethanol play (VSE) hasn't done as expected due to higher corn prices. So, unless we see corn prices plummet I don't see ethanol companies making a whole lot of money. Ignoring all the politics of course...Brazilian sugar cane is a much better source, but what will win out money or voters or lobbyists with more money?

[kimchi]

[ QUOTE ]
[ QUOTE ]
I don't want to sound like I'm touting something here, as I'm only stating what I believe is a great investment option(however speculative it may be) considering the high price of oil and what Tornado69 asked. That investment is ethanol stocks such as Pacific ethanol, Archer Daniels, and Gulf Ethanol as Americans, with the help of the government, push themselves away from the oil dependency gripping this country.

[/ QUOTE ]

Ethonal is heavily oil dependent right now, fertilizing fields without crop rotation takes huge amounts of energy to fix nitrogen and to transport that fertilizer to the locations. (this is for corn ethonal not sugar cane). When peak oil hits corn thonal will be such a big loser that it will collapse without huge gov subsidies... which isn't out of the question.

[/ QUOTE ]

I think the ethanolophiles don't realise the importance of oil in the ethanol industry. Ethanol is effectively a derivative of the oil industry for many reasons including some of those mentioned above.

Many of the big oil companies such as Shell and BP have been trying to diversify away from the oil industry for some considerable time. They prefer to be called 'energy companies' rather than oil companies. BP had a huge marketing campaign back in the 90s and spent $millions changing their corporate image from 'British Petroleum' to 'Beyond Petroleum'

Obviously, despite their marketing efforts, they are still oil companies with a tiny (perhaps unprofitable) alternative energy division.

[emon87]

lol there is soo much oil left in your own country OP, peak oil is a ways off.


and lol at the people taking fishhead seriously.

[wiseheart]

Actually, that is a good point. Turns out we have a lot of oil shale in the Rockies that is attainable and I believe profitable at these prices, there is a book out on it, but I can't remember the title, sorry. I plan to research it further.

[Fishhead24]

[ QUOTE ]
[ QUOTE ]
I don't want to sound like I'm touting something here, as I'm only stating what I believe is a great investment option(however speculative it may be) considering the high price of oil and what Tornado69 asked. That investment is ethanol stocks such as Pacific ethanol, Archer Daniels, and Gulf Ethanol as Americans, with the help of the government, push themselves away from the oil dependency gripping this country.

[/ QUOTE ]

Ethonal is heavily oil dependent right now, fertilizing fields without crop rotation takes huge amounts of energy to fix nitrogen and to transport that fertilizer to the locations. (this is for corn ethonal not sugar cane). When peak oil hits corn thonal will be such a big loser that it will collapse without huge gov subsidies... which isn't out of the question.

[/ QUOTE ]

Corn ethanol is NOT the answer.......only for a few years(exactly why farmland will continue to skyrocket for another 2 years)...........but ethanol production will increase every year for at least the next 10 years...........when grass, sugar, and organic wastes can be used to produce it.