Tuesday, April 18, 2006
Higher Gas Prices: Be Happy about it
If you can’t beat ‘em, Join ‘em – Couldn’t be more true for the oil industry. Gas prices are not coming down anytime soon. Here’s why:
Brazil, Russia, China, and India, you know the places where all our jobs are going. Well now they’re getting paychecks and starting to buy cars. This puts a BIG demand on Oil.
Russia just announced they wouldn’t be able to produce as much oil as they have in the past. Iran’s building a nuclear power plant. What’s up with that anyways? (World War III on it’s way, I assure you), and the Middle East is in turmoil.
All this means $3 per gallon gas will be here for a while. So what are we to do?
JOIN THE PARTY!!
Invest in an oil company. Exxon Mobil has had record profits. Now, don’t get too mad at them. It’s really a supply/demand thing. Stop complaining and become an owner in the company. Buy some stock.
My Pick is: Suncor Energy Inc. (SU)
Canada has massive supplies of oil. It’s held in something called Oil Sand. Only problem is, it’s difficult to refine. When oil was at $40 a barrel it was just too expensive to think about. But at $70/barrel, Canada’s looking to become the United States’ best friend.
If you had invested $1000 in Suncor Energy last year, you would have doubled your money. For most people that would offset the higher gas prices. And, the ride isn’t over yet! They’re expected to go much higher. It’s not too late to invest.
My Advice: Be an oil owner and you’ll get excited every-time you hear about higher gas prices.
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