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View Full Version : Oil = the next tech stock?


alnorth
04-19-2006, 08:40 PM
I believe that oil commodities are the next tech stock. This isnt the fault of the big bad oil companies, we simply have a bunch of speculators who are bidding the price up for no rational reason. When you look at the fundamentals of oil, the price is just too damn high, and I'm a free market conservative.

We dont need government intervention here, the market will eventually correct itself like it has many times before, and when that price comes crashing down, it will be a bloodbath for the oil speculators.

Adept Havelock
04-19-2006, 09:57 PM
I believe that oil commodities are the next tech stock. This isnt the fault of the big bad oil companies, we simply have a bunch of speculators who are bidding the price up for no rational reason. When you look at the fundamentals of oil, the price is just too damn high, and I'm a free market conservative.

We dont need government intervention here, the market will eventually correct itself like it has many times before, and when that price comes crashing down, it will be a bloodbath for the oil speculators.

I generally agree, but I do want a serious bipartisan government watchdog effort simply to insure that no price gouging does occur. Even more, I'd like to see the government actually sponsor a comprehensive "Apollo program/Manhatten Project" level effort at developing alternative energy sources. Especially if it was along the lines of the massive finance effort aimed at the Scientific Community in the 1950's, (to minimize the government f***ups).

sd4chiefs
04-19-2006, 10:36 PM
I started investing a lot of my savings into :hail: FSESX about a year ago because it seemed to be a no brainer.

http://moneycentral.msn.com/detail/stock_quote?Symbol=fsesx

oldandslow
04-20-2006, 08:20 AM
I believe that oil commodities are the next tech stock. This isnt the fault of the big bad oil companies, we simply have a bunch of speculators who are bidding the price up for no rational reason. When you look at the fundamentals of oil, the price is just too damn high, and I'm a free market conservative.

We dont need government intervention here, the market will eventually correct itself like it has many times before, and when that price comes crashing down, it will be a bloodbath for the oil speculators.

There will be some correction, fluctuation, etc. but I cannot tell you how wrong you are with this assessment.

Look at the supply numbers and then look at the demand numbers. The world is having a very difficult time surpassing present supply (about 85 mbd) while demand is increasing (especially from China and India) every year.

We have have hit a platteau with supply and indeed, I am betting supply will begin to decline in 5-10 years. That is when the shit will truly hit the fan. The infrastructure for oil shale, tar sands, etc is just not there. Further they take a huge amount of energy to remove. For example, if the energy gained from energy invested in light sweet crude is 25 or 30 to 1, tar sands will be about 15 to 1. Oil shale is worse than that.

By the way...I put my money in oil in 2000 - it was approx 23 dollars a barrel. I have not taken it out yet. I bought my Prius one year later.

I did this because I bought Colin Campbell's (based on Hubbard) argument concerning peak oil. I still do.