Wednesday, January 20, 2016

Oil Price Slide

January 20, 2015- I just want to point out before we get too far on sympathy for oil companies, and believe me I support our major industry, that in 2003 when a gallon of gas was around $1.60 Exxon earned billions of dollars in profit.Largest profit to that date. And they will be profitable in 2015. I am seeing in the media stories trying to generate sympathy for oil industry, saying who is going to suffer and lamenting the big drop in oil prices. Yes some of the smaller guys will suffer and me as I support smaller guys by investing in them. That is what happens in a capitalistic society, things change based on markets and if we guess wrong we lose a little. All in all over that 12 year period the stock market doubled, oil prices rose way high, many companies and investors profited. Now some of us are losing a little, That is the way it is.
The oil we are not pumping out today will stay in the ground, when prices rise we can pump it out. Maybe then we have better technology too as we developed the last 12 years. I can wait to then with gas prices at a reasonable rate based on what oil really is worth and not manipulated by faceless, nameless people.