Is there anyone left out there with real hopes for oil futures?

Question

Between being easily replaced (like with hydrogen in Japan or alcohol for combustion engines) AND forcibly phased out by governments worried about global climate change AND supporting less than savory regimes worldwide it would seem to me that the lobbiest underpinnings that are holding the price of oil artificially high are ready to snap. Even BP announced yesterday it is only spending 20 billion a year on oil development for the next ten years. It seems like a lot but it is one fifth of one quarters profits. If they really saw oil as a good investment why aren't they investing everything in it? Instead they are buying back their stock. Can anyone see oil as being anything but worthless 25 years from now?

Answer 1

Bad advice. Companies often buy back stock despite investment opportunities, they do it to placate shareholders. Don't read too much into that -- there's only so many qualified people and resources you can throw into oil exploration at the moment; beyond that the money is unproductive. Microsoft is always drowning in cash and can't spend it, but I'm pretty sure there's a future for software.

Of course we'll quit using oil someday. We'll do so when alternatives to oil become more economical than oil. Despite all the politics and B.S., we will certainly continue using plenty of oil until its prices starts permanently rising -- whether that's next year or 100 years from now I don't know. We will NOT quit using oil as long as it is cheaper than the alternatives.

The risk with oil futures is that maybe oil will become cheap and plentiful again for another decade, like in the 90s. However, oil won't be permanently cheap: someday it'll become scarce precisely because we will keep using it as long as it IS cheap.

Answer 2

Well, oil future typically are measured in a matter of months, not years.

On that front, a global slowdown would also kill those contracts.

But I agree that in the long-term the market looks dim. To my knowledge, however, I'm not sure that there is an adequate replacement for the petrochemical market yet.

Answer 3

Yes, oil will be up considerably in the next 25 yrs.
Great futures investment for smart people.

Answer 4

if you are young like me (i am 19 years old) then there really is not future in oil. oil is not going to improve alot in the next 25 years. it will not be worthless, because we probably will still use oil in 25 years, but oil is not profitable anymore for people to just enter in now, compared to if we entered it 50 years ago.

Answer 5

you may be able to find helpful hints and information about oil investment on this website:
http://www.bestwaytoinvest.com
there is some information about investment

Answer 6

Get an independent Congress and Senate that starts thinking about our countries welfare and stop thinking about themselves and STOP POULTICING