Ok, so for now the world market on oil is skyrocketing, right? Probably
in part due to the fact (to name a few things) that the average car
consumes more gas than it did 20 years ago (24mpg now instead of 26mpg in
1987), the fact that the booming economy promoted high spending on big
SUV's and other gas guzzlers in the past years, the fact that as our
cites get larger commuting mileage and time increases, and a result of
the US having more toys consuming excess energy than we know what to do
with (to name a few things). Well what is going to happen when all the
automakers start coming out with 70-100 mpg cars and other industries
begin to promote higher energy efficiency and/or alternative energy
sources (and build new nuclear reactors)? Isn't that going to dwindle the
demand for oil by more than half? Shouldn't that be reflected by a drop
in oil prices? If so, wouldnt selling the oil companies short when we
see the 200 day moving average price peak be a smart bet, or perhaps
investing in companies that profit directly from oil prices dropping (like
power and/or natural gas)? We should try and think about the effects
these high mpg cars and other energy saving applications will have on
industry and invest in what makes sense. Who spends the most on fuel? When
the price eventually drops they will be making all that much more
profit since we know they would never give any price breaks.
There has got to be money to be made here. Perhaps looking at what made
money in the early 80's after fuel hit its last peak cycle and dropped
in price.
Any ideas on where the most money would be made from oil dropping and
energy usage becoming more efficient.
2006-08-11
04:02:59
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7 answers
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asked by
ufdan25
2