If you do believe in peak oil theory and you aren’t trying your hand at oil trading then why not?
If you’ve already been a successful property investor, you may want to try an additional area like oil to boost your income. There are absolutely no guarantees of success, of course, but for those of us who do believe in peak oil, then we really ought to be putting or money where our mouths are.
First off, what is peak oil all about?
Very simply put, peak oil theory has it that as oil is a finite resource and as the so called BRIC economies of Brazil, Russia, India and China are growing like there’s no tomorrow, then the world’s demand for crude oil will keep on rising as these hugely populous countries all want cars and generally increase production to meet demand of various oil-consuming products like plastics etc.
That’s a very crude explanation of course – pun most certainly intended.
No-one really knows how much oil we can yet reasonably access as a species, but BP’s Deep Horizon oil well disaster in the Gulf of Mexico last year shows just how desperate the companies are to drill deeper and deeper for the black stuff. The peak oil theory holds that we’re near to passing or maybe have even already passed peak production.
Most pundits agree that we’ve used up most of the easy-to-access oil, so the remaining reserves are less accessible and so costlier from which to extract oil.
Ergo… you’ve guessed it, the oil price keeps on rising until we find sufficient alternatives and find ways of using less. Alongside the environmental concerns, this really explains the world’s increasing fascination with alternative energy forms and cars that run for 100 miles or more on a gallon of petrol etc.
Anyway, if you believe in the theory as I do and think the price of oil will gradually move to $200 a barrel over the next five to ten years, perhaps you should be trading oil – or at least trialling it with a broker in a demo only environment to see how you get on?
This article was written by David, a keen trader. Recently, he has been trying to boost his knowledge of oil trading, hoping it’ll help him score bigger deals.
