Remember "peak oil." It's so bloody hard to say when, but most agree it will rise in the long term future. My own 2 cents is we will not see oil over $100 for at least a decade.
Yes, dividends. In fact the equity I hold is a royalty trust, basically they distribute all of their profit out each month. So it's a pure dividend play and since my holding period is pretty damn long I'm fairly certain that with time it's going to be profitable.
That could very well be. It's hard to put price estimates but the current levels are too low in the long run and $100 per barrel seems very high as those prices are what ramped up production in the USA in the first place. I'm still expecting oil to be above $60 soon-ish... 2016 maybe.. 2017 at the latest. That is just my own uneducated guess though. (and that is what I've based my investments on)
Nice to know we can count on dividends! To be honest, if there's another way of gettings profits in a company rather than selling/buying shares just for the trading, I must admit the dividend idea feels cool. Wow, uh. I more thought about an heavy raise before the end of the decade, maybe as soon as 2018, when it will start to raise again. Historically, I think oil rose more sharply than it gone down, so I would expect the very same effect when it happens next. One phenomena that could go against oil price rising is the development of renewable. Some will thinks it's only a militant thing, but more and more institutions try to lessen the usage based on it, and all companies I know try to do more with less oil, just because they fear to be dependent of this resource and its volatility (which, compared to some others, is quite terrifying).
At any given time, we're just a conflict away from oil being well over $100 again. I'd be very, very shocked if we don't see $100+ oil again in the next few years.
Unfortunately I have quite a bit of high yielding investments based around energy/oil business so some of my accounts have slipped quite a bit. My commodity funds have slipped a lot as well, since they contain a lot of oil. The only saving grace is that I am long-term with them so I keep buying with the dividends. One thing that keeps my investments in this area limited is that I don't feel secure about oil in the long-run. It seems inevitable that clean energy, such as solar or some other thing, will replace it. I'm sort of banking that the oil industry will be healthy for a few decades more. That being said, I've enjoyed the much lower prices at the gas station!
I think we've got quite a ways to go before fossil fuels are a thing of the past. I don't believe that will happen in my lifetime unless the govt gets really stupid. Oil plays an important role in my personal financial situation in various ways as well.
I'm in agreement. I too cannot see fossil fuels being phased out any time soon and I can't see it happening any time in this century. Oil though, well I am certainly enjoying the effect it's low price is having on the pumps at the moment but am dreading the day it's price rises!
Questions is even though oil prices do rise eventually, by what percentage will they rise? Maybe 10%? Or 20%? http://www.cbc.ca/news/business/oil-price-forecaster-declares-crude-at-a-turning-point-1.3258298 Not too huge a rise but a rise nonetheless. I expect though that the Syrian conflict will have an negative effect on oil prices. The best way for Saudi Arabia to force Russia out is by cutting the oil prices. Again.
Well, even if there's a rise lately, I still think that the upcoming 2016 won't rise much in the future. I know some feels like it's time to rise because of the U.S. fall of the production, but I think they can pick up at any moment, maybe United States have another strategy: they try to put less U.S. oil in the market, so the oil brought by companies are from the Middle East but at a low cost for them stimulating the economy while keeping the U.S. reserves available at a later date. So, honestly, I expect it to stay low in 2016 if things are reasonable, and maybe it may rise a little in 2017. I don't feel like it's "stupid" to go into the renewable quickly, to a point it will threaten the oil industry somehow. Right now it is not really developed but when it will be time for the big launch (and when it will be time to push for that launch to hurry), it will be correct to see government acting properly.
