Energy Stocks

[Vllad]

I am pondering if I should buy in bulk and split between Exxon and Conoco or just purchase stock on an LNG company. I can't find enough history to finalize my decision on any LNG, Coal companies or anything else similiar out there.


Vllad

[Vanraw]

Interesting read from 12/2010. I find it interesting that Natural gas doesn't follow the same supply and demand trends that other commodities do. While Higher quanity will lower the price, lower quantity will not raise the price. The demand just stays flat.

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Are you thinking this is the next mass fuel for cars and trucks?

Here is a ETF on Natural Gas, not just LNG.


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Conoco has a nice dividend. 3.58%
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In the U.S. market, ConocoPhillips (NYSE: COP) offers a nice balance between natural gas and oil. You get to participate in any upside in crude oil prices while also benefiting from an eventual comeback of natural gas, whose depressed price will sooner or later cause a comeback in demand, be it in the form of natural gas-fired electricity plants or other uses.

[Vllad]

I decided to take the risk and picked up 170 shares of Exxon. I was going to go all Conoco but decided to play it risky this time.

I think we might see $90 plus this summer sometime.

[Vanraw]

Probably a really good bet.

It will be interesting to see how Libya ends.

Also Japan is an impact here because they had refineries destroyed, or at least put out of action. Companies like Exon are trying to figure out how to deliver refined fuel to Japan instead of just the the oil.

Also the speculators / large retirement funds that proped up Oil when it peaked in 2008 havent even begun to create false market prices yet. I would not be surprised to see $150 plus oil this year.

[Vllad]

I guess oil stocks really aren't much of a risk. Its not like they don't deal in a commodity that has a limited supply. Eventually it will always go up.


Vllad