It's not like investing in real estate. Your best option would be buying exchange traded funds that specialize in the oil sector. That will give you participation in the sector as a whole, and does not require specialized knowledge or investment skills to choose individual companies.
You can also buy them in your 401(k) or RRSP if you are American / Canadian
2007-09-28 16:35:43
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answer #1
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answered by Bifferoo 3
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Its a complex business. There are the drillers, drilling equipment, well services, exploration companies, pipelines and refiners. Its somewhat like real estate in that its cyclical. But overall probably more volatile. The peaks and troughs in the cycles of the oil business can be more dramatic. The business depends on supply and demand for oil and the price of oil. When supplies are low prices go up and so do oil industry profits. Natural gas is closely related to the oil business because it often comes from the same well. But oil is sold to refiners and natural gas to gas companies. You can invest in the stocks for each sector of the industry or in the commodity itself, in futures, or options. Or get into the business directly by leasing mineral rights. You can farmout the lease, the oil business version of a sharecropper, or get investors and explore yourself. There are state and federal auctions for mineral rights and individuals who own mineral rights to lease.
2007-09-28 15:52:35
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answer #2
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answered by jeff410 7
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Why ? The oil inductry has not anything to do with the car enterprise. Why no longer make microsoft pay, or mcDonalds, for the reason that individuals force automobiles to paintings at MS or to move consume at McDonalds ? Or make hollywood pay, individuals force automobiles to visit the films.
2016-09-05 11:09:33
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answer #3
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answered by Anonymous
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My preference is the trusts but if you look under the industry section on yahoo , you will find more options
http://finance.yahoo.com/
The energy trusts , ERF PGH BPT PWE HTE
2007-09-28 16:19:24
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answer #4
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answered by kate 7
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Open a brokerage account at Zecco and I will help buy a few shares of Exxon Mobil for FREE. (I am a Portfolio Manager)
2007-09-28 18:22:06
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answer #5
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answered by Anonymous
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