Time to buy petro stocks?

I'd rather invest in Toyota. It has done well for my IRA over the last 10 years, and I like where they are going with their products. Now if they could just get off of their current front end styling kick and get back to something simple and elegant...

Bill the Engineer

 

my 94 year old father just bought 500 shares of exxon mobil. he has no morals.

funny, looking at toyota stock, some here were predicting the end, when they were going through the u/a debacle. looks like it has been a pretty good investment.

 

From Poland's point of view it is cheaper to import your natural gas from your friendly Russian neighbor to the east than to produce your own.

In the short term everyone is cutting back on their exploration & development. This will cause future supply to be reduced and prices will rise.

The best time to buy may be behind us. COP hit its low January 15. XOM was December 16. BP was December 15. CVX was Friday. COP reported a loss for the 4th quarter and looks like it won't pay a dividend in March. BP hasn't declared a dividend either. XOM goes exdividend February 6 and CVX on February 12.

There are other stocks that pay higher dividends. The companies that do the exploring, drilling, and servicing got hit harder. Tomorrow's survivors are today's bargains.

The best time to buy is when there is emotional selling. Runaway Prius Time was the buying opportunity for Toyota. The Macondo Blowout was the opportunity for BP. The DoJ Suit was the time for MHFI. Remember when the pundits were nailing shut the coffins for Apple and IBM?

There are two things to keep in mind: "Asses come in masses" and "It's not as good as you believe and not as bad as you fear."

Personally, I believe the worst is behind us. I don't believe oil will drop as some do and I'm not sure oil will recover as quickly as some believe. It's going to be a tough one or two years.

Worldwide oil demand continues to increase. Thank you, India and China. Oil is not going away.

For the record, I'm long in oil, natural gas, and utilities and selling covered calls.

 

From what I read the reason Chevron abandoned Poland (and Lithuania and Ukraine btw too) was because it was futile. They drilled 181 wells and none of them produced gas in commercially viable quantities. Turned out that the fracking methods which lead to abundance of shale gas supply in NA did not fare well there. Why? two reasons: the rock formations there are alot harder, so you cannot frack them down for one. Another is the presence of clay which would mix with fluid and clog everything.

So in nutshell fracking does not work there, and what was deemed as huge piggy bank turned out to be an empty shell. This is an interesting discovery and I wonder how this would change the geopolitics of that region.

 

The spot price of WTI has closed up 7 of the last 10 trading days so I don't believe the labor issue has had a measurable effect. The refineries are still in production with the exception of the unit shut down for repairs/maintenance. It will be interesting to see the production figures as the strike continues and expands. Strikes have been called at only a handful of refineries, those with the worst safety records.

 

Actually Pops is looking pretty smart at the moment. What else is he buying?

I am nervous about stocks though as some expect possible market downturn.

 

me too, i'm not buying anything. he bought some energy company which had fallen from 19.50 to 6. now it's up to 8 and he's buying another 500 shares. i'd have to look up the name, it's just 3 initials on the exchange.

 

wjtracy, "the market" and individual companies are two different things. Energy stocks in general and oil in particular have already experienced a "market downturn". Forecasting the market is like forecasting the weather--whatever your prediction you'll eventually be correct.

For those waiting for "the downturn", what's your entry point? While you are waiting, what's your money making? The best I've seen from any bank is almost 1% with most closer to 0.1%. There are many solid companies paying higher dividends.

For me, 2014's bottom came on December 15. As the oils are down the utilities are hitting record highs. The indices were hitting record highs as the oils tanked which means other components were seeing bigger gains.

Buy into an index fund designed to perform as the S&P 500 or Dow Jones Industrial Average if you don't want to own individual stocks.

Invest for the long term. History has shown that even buying at yesterday's high if you hold long enough there will be a higher high tomorrow.

There are always opportunities but you have to recognize them.

 

mines making 1 - 1 1/3%, i need 10 million in principle to get by.