This idea was suggested by Armin Stuk.
http://www.socialpicks.com/ideas/show/141361
Points in favor
1.3rd largest integrated oil and gas company in the US
2.5th largest refiner in the world
3.investment in Lukoil will continue to pay off as there is a chance that Russia will invite foreign companies for exploration and production activities in the future.The CEO of Rosneft has come out with a statement saying that oil production in Russia has peaked.While there is a lot of oil left in Russia,it will require a lot of investment and advanced technology to get it out.I personally believe that money will talk and when the crisis erupts as I believe it will,Russia will be forced to seek help.And COP with its Lukoil partner will be first to line to reap the benefits.It is to be noted that this is my amateur personal opinion and am influenced by ownership bias.And I am long Russia through the etf as well as through individual stocks.My point is that I am not expecting Russia to have problems anytime soon but it will .Jim Rogers is of the opinion that they are stripping their assets.This is in line with my holding period -the whole length of the commodity supercycle which may last for another 10 years.
4.Oil prices will keep on rising(demand-supply imbalance,B-52 Ben,the worthless dollar,investment demand)
A note of caution
Oil reserves are increasingly in the hands of hostile regimes who run nationalized oil companies.Increase in oil reserves will be a challenge going forward.The reserve addition has to looked into going forwards.
$84.96 (04/23/08)
