Oil Stock Quote – Significant Advice By Way Of The Unadulterated Analysis
January 27th, 2012
Unsophisticated investors may simply check the oil stock quote of the latest market darling or company gaining some buzz, and then act accordingly. I’ve also been in the position of not wanting to get left behind, and thus tempted to jump on board a company right before a big correction or episode of profit taking. I’ve also taken pause only to miss the next profit rocket when it was clearly one of the top stocks to buy. The key is to understand that an oil stock quote is just a present representation of what the market knows and understands about a given company, and hardly enough to determine if it’s one of the top stocks to buy now. Market inefficiencies could mean a company is undervalued and represents a great buy. You could also be looking at a company that has moved too far too fast. So, grab the oil stock quote, but then read on to understand a few relevant factors that are affecting the oil markets today. Ascertaining how these issues do or do not affect the company you’re considering can put you ahead of the pack and position you for exceptional gains. Oil Stock Quote Factors Such As “Peak Oil†With all of the concern about oil, it can be tough to get a handle on the real story needed to guide proper fossil fuel investing and interpretation of your oil stock quote. We’ve heard about how production is slowing and “peak oil†is either here or right around the corner. We’ve witnessed a surge in new oil demand by developing nations like India and China. With no slowing of demand and consumption, and alternative energies slow to gain traction, understanding the reality of available supplies is important. An honest look at South America reveals some statistics few are aware of, but can certainly impact your oil stock quote, if even in the future. Venezuela is thought to have approximately six hundred billion barrels of heavy crude oil in the Orinoco Basin. That level of oil is enough to sustain today’s level of consumption in the United States for nearly a century. The problem, of course, is that Chavez gave Exxon and Conoco-Phillips the boot half a decade ago. The players who got to stay had to make massive donations to the state oil company. The ace up the sleeve, of course, is the fact the refineries that can handle the heavy crude are in the United States. Oil Stock Quote Vulnerable To Refinery Relocation That sounds like quite the safety net. However, what few people realize is that refineries in Jamaica, the Dominican Republic, and places like Ecuador are shifting to the ability to process the heavy crude. As these refineries come online, Chavez can easily shift gears and funnel oil completely away from the United States at will. The notion of peak oil stems from an accurate prediction that U.S. oil production would peak in the 1970’s. It was a Shell scientist who made the prediction. But others took the idea global and began to anticipate when things would slow down worldwide. The trigger event is when over fifty percent of all available oil is now gone. At that point, the oil crisis is said to begin as we slide down the slope to exhaustion.