Quote:
Originally Posted by SpookShow'84
It would have been a bad buy. OPEC is going to drown in their own oil and they're just grasping for straws at this point. They now control so little of the world oil supply that this just amounts to a last ditch temper tantrum.
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Yes, but if you can find some US companies that stand to gain from increased drilling activity here in the US because of higher prices, you could make some money off their stock. But the Saudis are screwed. They will not see $100+ per barrel they need for their state budgets, the Russians and others will cheat, and the increased price will only start the frackers drilling again. All this means the Saudis will lose market share, and still sell at a low (for them) but better price. The US industry will make more profits and drill more, which will help contain prices on the upswing and give the US more market share, and boost our economy in the process.
That's why the Saudi's are developing natural gas and solar resources as we speak. The writing is on the wall, and they are diversifying.
So, a savvy investor could stand to make some money, but not by blindly buying any old energy stock. You would have to pick ones related to drilling activity and the services that support that. And of those, you have to pick ones that know what they are doing, and are financially fit to do so. AND, you have to find one that others have not already found yet. That's lots of ifs...