oil stocks

aidanki

Im looking to do some buying at the min

One thing Im seriously considering is Shell, there is a 7% dividend if nothing else.

Oil prices not really on the floor right now

the other oil stock I am watching is Conoco Philips

any thoughts ?

Francie Barrett

aidanki wrote: »

Im looking to do some buying at the min

One thing Im seriously considering is Shell, there is a 7% dividend if nothing else.

Oil prices not really on the floor right now

the other oil stock I am watching is Conoco Philips

any thoughts ?

The big problem for me is that the oil market has a very rose-tinted view of the world on this. Everyone knows that at $50, all the big oil companies are losing money. The market however has this expectation that higher prices are just around the corner, almost like it's taken for granted that a brighter future is just around the corner. This view isn't being helped by the fact that the oil companies themselves are borrowing money to keep the dividend artificially high.

Francie Barrett

http://www.wsj.com/articles/largest-oil-companies-debts-hit-record-high-1472031002

Good article on big oil.

Cathbadhian

Buying at the min is not a terrible idea, but the problem is the time frame to any real recovery vs return on less volatile stocks. We keep seeing bouts of optimism at the slightest hint of limited supplies, offset by the almost inevitable disappointment of it never quite materialising. It's also not even remotely clear where oil prices, even on recovery, would actually stablilise. Is $100 realistic? Even the Saudis seem to think that was over the top. $75? Maybe in five years? Anyone for a random game for dice?

Cute Hoor

The US is the largest oil consumer in the world, nearly half the oil consumed in the US goes to fuelling vehicles, electric vehicles will replace a lot of the gas guzzlers probably eventually all of them, a process that will be repeated around the world. What will replace that huge segment of the oil market?

BrokenArrows

Cute Hoor wrote: »

The US is the largest oil consumer in the world, nearly half the oil consumed in the US goes to fuelling vehicles, electric vehicles will replace a lot of the gas guzzlers probably eventually all of them, a process that will be repeated around the world. What will replace that huge segment of the oil market?

Thats true. American made cars are just a joke when it comes to fuel efficiency. Had a conversation with a taxi driver (driving a standard taxi) about his car the last time i was in the US. He said it was a 4 liter engine and got about 30mpg on a good day.
To me thats insane. And hes no different than anyone else.

But you're right. I think the days of fuel inefficient cars are coming to an end. People have had a taste of what reasonably priced fuel costs and wont be too keen on paying the price if it rises to $100.

We are at a turning point in society where cars are changing to electric/hybrid. They are not rare anymore. You see hybrids every day.

Id say in the next 10-15 years electric will be on par with oil.

However thats all customer vehicle demand, the true downfall of oil will come when commercial vehicles start converting to electric/hybrid but i dont see that happening anytime soon.

But the amount of fuel being used by the shipping industry is insane. I found stats on the Queen Mary 2 which apparently burns 6 tonnes of fuel per hour. Thats roughly 18 years of fuel for a single car.