Most media outlets in the US have described the rising oil prices as a crisis, it is not, it should be decribed as a problem.
there is a difference, the Flu of 1918 when the death rate in the US went up 5X is a crisis....this is an economic problem.
also the high prices will actually achieve what should have been done before....conservation.
the sale of trucks and SUV have fallen sharply in the US, GM just shut down an Oshawa plant in Ontario Canada....because of sharply falling sales...(also high costs but that is another theme)
more people want better fuel economy, as the price of compact, and hybrids sales are rising sharply....even trucks, and crossvovers advertise the fuel economy. this trend will continue, as fuel will be more expensive people will want a vehicle that uses less.
this is for other industries, as planes that are hard on fuel are being parked for new ones. Toyota has announced they will come out with an electric car by 2010 that will be an large improvement. also hybrid that will be a great improvement over the current models...
Toyota and others are also going to spend large amounts of money on battery research...probably within 3-5 years, maybe less depends on how much money is spent on research... will come out with a battery that will great improve hybrid/electrical. the car of the future may be able to be plugged in over night and run all the next day... with the horsepower now lacking. this is just the first step, however toyota has the idea, and is going in the correct direction... the company that comes out with the best battery wins....( well not really but close.)
PEAK OIL
though I missed a documetary on the tv about this subject do not believe we are at peak oil yet, though it may come...for now we have large amounts of oil in VZ oil sands, Cnd. oil sands, deep offshore wells.... these will need higher oil prices than in the past at least 60 and probably 80+. or else not worht developing.... these targets are billions of barrels, the only problem is they are expensive to get to....not cheap. so cheap oil is gone however peak oil is not here yet....
more of these projects will be developed in time.
(not to much invesments in VZ at this time)
oil has had a great run up, from 100-139, it should come back, just natural after such a strong run....though thought this a while back a keeps running. bullsih long term, however a short term correction could be expected....
natural gas is a great investment, and should be bought on any pullback. (own devon and eca, and some jr. midcaps, wish it was more).
if the financials show strength will probably buy back into GS and write a covered call, reducing my risk, also sadly my upside. though the stock fell back yesterday, recovered. MS earnings, or lack of, had a terrible report however the market rallied, the day before GS came in with good news and the market did not care.... strange. covered calls are decent on GS so will buy some and write calls on 75% of the position.
like WFC. holding HD, called how to invest in retail for a year, write covered calls, and still make know money.
thanks
selkirk
there is a difference, the Flu of 1918 when the death rate in the US went up 5X is a crisis....this is an economic problem.
also the high prices will actually achieve what should have been done before....conservation.
the sale of trucks and SUV have fallen sharply in the US, GM just shut down an Oshawa plant in Ontario Canada....because of sharply falling sales...(also high costs but that is another theme)
more people want better fuel economy, as the price of compact, and hybrids sales are rising sharply....even trucks, and crossvovers advertise the fuel economy. this trend will continue, as fuel will be more expensive people will want a vehicle that uses less.
this is for other industries, as planes that are hard on fuel are being parked for new ones. Toyota has announced they will come out with an electric car by 2010 that will be an large improvement. also hybrid that will be a great improvement over the current models...
Toyota and others are also going to spend large amounts of money on battery research...probably within 3-5 years, maybe less depends on how much money is spent on research... will come out with a battery that will great improve hybrid/electrical. the car of the future may be able to be plugged in over night and run all the next day... with the horsepower now lacking. this is just the first step, however toyota has the idea, and is going in the correct direction... the company that comes out with the best battery wins....( well not really but close.)
PEAK OIL
though I missed a documetary on the tv about this subject do not believe we are at peak oil yet, though it may come...for now we have large amounts of oil in VZ oil sands, Cnd. oil sands, deep offshore wells.... these will need higher oil prices than in the past at least 60 and probably 80+. or else not worht developing.... these targets are billions of barrels, the only problem is they are expensive to get to....not cheap. so cheap oil is gone however peak oil is not here yet....
more of these projects will be developed in time.
(not to much invesments in VZ at this time)
oil has had a great run up, from 100-139, it should come back, just natural after such a strong run....though thought this a while back a keeps running. bullsih long term, however a short term correction could be expected....
natural gas is a great investment, and should be bought on any pullback. (own devon and eca, and some jr. midcaps, wish it was more).
if the financials show strength will probably buy back into GS and write a covered call, reducing my risk, also sadly my upside. though the stock fell back yesterday, recovered. MS earnings, or lack of, had a terrible report however the market rallied, the day before GS came in with good news and the market did not care.... strange. covered calls are decent on GS so will buy some and write calls on 75% of the position.
like WFC. holding HD, called how to invest in retail for a year, write covered calls, and still make know money.
thanks
selkirk
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