Thursday, May 31, 2007

investing in oil

Investing in oil can either be a nightmare or a fabulous adventure depending on your perspective. If you are the the cautious and prudent type, oil investment might not be for you. Investing in oil and natural gas, after all, is very risky. Natural gas and oil are always at the center of political drama and debate around the world. Pipelines flowed through some of the most politically charged areas on Earth. Much of our national policy, such as the war in Iraq, is dictated exclusively by oil prices. If you choose to invest in oil, you are putting yourself right in the middle of all of this.

On the other hand, investing in oil can make you wealth beyond your wildest dreams. Stock market investing can make money, but investing in oil is almost guaranteed to. Provided that the political situation remains stable and that OPEC doesn't pull some kind of surprising move that affects the whole oil industry, investing in national gas and oil will make you money anywhere on earth. Oil is so lucrative that the state of Alaska can afford to pay everyone thousands of dollars a year just for living there. All this money comes from the Alaskan oil pipeline, and it goes directly to the citizens of Alaska.

One of the great things about investing in oil is that, as the world oil supply shrinks and the value of oil continues to rise, your investment will be worth more and more. Inevitably, things will become destabilized. It does not pay to have all your money locked up in natural resource investments, but it sure does make sense to put some of it there. There are so many investment opportunities that I certainly would not suggest investing in oil as the only one you try, but it might just be a good place to start. After all, many opportunities for investing are rather hard to understand, but oil is easy. We need it to make cars run, we need it to transport our food, and we need to defend our country. It is something that is in limited supply, and is useful for everything. What more do you need to know?

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