The Democrats are in a very strong position following Tuesday’s election. Andrew Snyder says oil majors like Exxon Mobil (NYSE:XOM) and BP (NYSE:BP) will face higher taxes and stricter legislation. But offshore drilling experts with international exposure like Transocean (NYSE:RIG) remain an excellent long-term investment.
Choppy markets have sent dividend yields to “unbelievably high” levels, says Jim Nelson. This makes today a great time to start income investing. Jim says Royal Dutch Shell (NYSE:RDS:A/RDS.B) and BP (NYSE:BP) are two cash-rich companies with consistent dividend payments and “absurdly” high yields right now.
Falling oil prices have hurt a lot of investors, even some of the nation’s so-called energy experts. One of the nation’s oil heroes, T. Boone Pickens, has lost billions in 2008.
I am not sure this country should follow the advice of a man that has lost over $2 billion so far this year. But then again, some of the nation’s most powerful men have lost far more than that in just the past few weeks.
If you spend any time watching your living room television set, you have seen T. Boone Pickens discussing his proposed energy plan. The 80-year old has spent over $58 million of his own money to tell the nation it must lose its dependence on foreign oil.
What…
The rules of the global oil games are changing, says Keith Fitz-Gerald. And China — not the US — is leading the way. China doesn’t worry about the political leanings or dubious human rights of its energy suppliers. It needs a steady supply of oil to fuel its economic boom…and it will do what it takes to get it.
Oil was given a lift yesterday. But at $81.19 a barrel, the black goo is still almost $70 from its July peak.
Greg Guenthner isn’t sweating it.
Oil prices have been caught up in widespread panic selling of recent months. It remains a scarce and essential commodity. This means it is only heading in one direction over the long term.
Greg recommends following oil guru Richard Rainwater’s cue and buying into oil stocks with both hands.
Penny Sleuth’s Tom Bulford says oil explorer BPC Limited (LON:BPC) could be onto big things in the Bahamas. The company has five prospecting licenses off the coast of the Caribbean island, where research suggests it could find major oil deposits. Tom says political stability and a great geographical location give this project serious potential…
Russia’s main stock markets remain closed this morning after a slump in equities prompted the authorities to suspend trading. Falling commodity prices and financial turmoil have hit Russian investors hard. But Money Morning’s Jason Simpkins says Putin-lead Russia has itself to blame for scaring away foreign investment with its heavy-handed policies.
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The Reuters/Jefferies CRB Index shows commodities jumped 29% in the first six months of this year – the best first half for more than 30 years.
But there is much talk now of a “commodities bear market” and the popping of the so-called “commodities bubble” as prices pull back from their highs.
Jim Rogers, however, remains a commodities bull. “This bull market is not magic,” says Jim, writing in Whiskey and Gunpowder. “It’s not some crazy ‘cycle theory’ I have. It does not fall out of the sky. It’s supply and demand. It’s simple stuff.”
China and Iraq will sign a deal next week to develop the Ahdab oil field, 100 miles southeast of Baghdad. The move comes at time when political gridlock and security concerns have cast doubt over several pending short-term contracts, says Jason Simpkins in Money Morning.
