Investment in oil
There are many ways to invest money in oil business. These include the purchase of the shares of oil companies and oil refineries. Stock transactions with oil or refined products. It can be long-term investments or speculation on the stock quotes. But arises legitimate question about the reliability and perspectives of this kind of investment.
The main factor that affects the oil quotes is irreplacability of resource. While oil is required, its prices will constantly and steadily growing. Rumors about the imminent end of the oil reserves heat up the growth of oil prices. Anticipated end date ranges from 20 to 50 years, but this causes an explosive growth of oil price. In the modern world, oil has become a geopolitical resource. Any political events affect the oil price, in most cases - upward. Priority and reliability of investments exactly in this resource is reflected in the fact, that it cost takes into account in almost all goods of the world. It sounds perfect.
It seems that you can not find anything more reliable. After all, even natural disasters like the catastrophe in Japan, lead to greater interest of the world economy in this product. But there is always another side to the coin.
The very structure of the world economy will not allow oil to grow in the price too much. The higher price of oil, the higher will be price of goods. Therefore, the production itself will be less profitable. This leads to a quantitative reduction in the commodity production and decrease in demand for oil, namely - fall of its price. Significant increase in revenue from this sector should not be expected.
There is also the question of the development of alternative energy sources. Researches in this field are rapid and well funded. This is reflected in the emergence of the working models of engines operating on biological and hydrogen fuel or electricity. All this strikes the most volumetric market sector, which is engaged in oil and oil products. Even discrediting of the nuclear industry has not prevented the development of alternative energy sources. The revolutionary discoveries are not expected in the next 10 years, but this term is too small for making long-term investments, relying on it.
The main factor that casts doubt on the perspectivity of investment in the oil, is the excessive politicization of this sphere of the economy. State structures and associations conduct permanent price correction. Oil revenues are less and less dependent on objective factors. Also add constant oppression of the tax system. Thus putting under attack the principle of self-correcting market. And that's not taking into account the geopolitical conflicts and interests, which leave no space for private economic initiatives in this sphere.
There are little long-term perspectives, but...! Rapid scientific researches are carried out not only in the areas, opposing the monopoly of oil, but in the section of its alternative use. Therefore opens a new, very promising way of long-term investment of money - using of products of oil refining in the modern technologies.
Simple burning of oil receding into the past. But this can not be said about oil itself. You just need to see in time, that sphere of its processing, which will become dominant in the future. It comes a time of investments not just in the oil or oil industry, but rather in its future development. Which development can be seen, if you will conduct a careful analysis of the current market.