Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
Support MFO
Donate through PayPal
Hey, 'bout that oil.......there's more.......of course
This ties into the continuing impact of technology. Invest accordingly, going down the road, eh?
Tis also a new report regarding a "better" fracking method. I can't find that link at this time, but this new method will be or is in current use by Schlumberger.
More on the topic. It does look as if there's a near-infinite amount of fossil fuel (including oil) available. Fracking methods keep improving. Cost of recovery keeps falling.
None of this is meant to dismiss the serious environmental impacts these fuels create. I don't think anybody can predict accurately what demand will be in 10, 20 or 50 years. But I'd expect it to fall. (Musk now has a car that can go over 300 miles on a single charge.) For some applications, like large transport aircraft, I'd think weaning them away from oil-based fuels is a lot farther away.
Wow. Nat gas popped almost 5% today and oil's up over 3%. Nice run in recent weeks. I loaded up on PRNEX in '15 and early '16 not because I understood anything about energy markets, but because looking at price charts the fund looked really cheap (off over 50% from highs). Sometimes this approach works and sometimes not. Have scaled out over the year, but still hold a small slug. PRNEX probably will close near $34 today. At $35 I'll unload a little more.
Comments
If things ever settle down in the Middle East (doubtful) that area could benefit from the new technology and infrastructure rebuilding.
What if this is true?
http://www.usnews.com/opinion/blogs/on-energy/2011/09/14/abiotic-oil-a-theory-worth-exploring
None of this is meant to dismiss the serious environmental impacts these fuels create. I don't think anybody can predict accurately what demand will be in 10, 20 or 50 years. But I'd expect it to fall. (Musk now has a car that can go over 300 miles on a single charge.) For some applications, like large transport aircraft, I'd think weaning them away from oil-based fuels is a lot farther away.
Wow. Nat gas popped almost 5% today and oil's up over 3%. Nice run in recent weeks. I loaded up on PRNEX in '15 and early '16 not because I understood anything about energy markets, but because looking at price charts the fund looked really cheap (off over 50% from highs). Sometimes this approach works and sometimes not. Have scaled out over the year, but still hold a small slug. PRNEX probably will close near $34 today. At $35 I'll unload a little more.