DUG .. Pro Shares Inverse oil and gas
Hint.. The driving season peak is coming to an end. Geopolitics are all priced in, and arabs ready to open more spiggots. And there is NO PEAK OIL.
OGM, what are your fundamental reasons regarding peak oil???
I think there is no peak oil. I think its if MO published a paid report about peak tobacco
I think most of this rally is just geoploitics and speculation. Liquidity is now deflating and geopolitics can only get better.
Besides I think Oil will be gradualy replaced by new fuels. Most car manufacturers already lining up mass production of hybrids of all kinds, and even with those hybrids, you can use ethanol, like E85, its just a matter of building out the infrastructure.
Basicaly, I'm very bullish on alternative enrgies and very negative on fossil fuels. I think these last couple years only accelerated the new revolution in energy sources.
Another thing.. politics... In case democrats will win presidency next year, there will be lilkely pull out from Iraq, general geopolitical situation will soften up more. And they will definitely close the tax loopholes and tax breaks for the oil companies. And redirect them to the alt fuels.
I see oil companies aren't investing in expansion. They choose to buy back stocks,. they aren't building more refineries, and so on... I think they see it coming from all sides. There is no future in oil, and they know it.