Industries Highest Oil and Gas Returns by
With gas prices down the past few months, due to economic conditions, they are poised to start
going up in price to the consumer and investments for stockholders and commodity traders. Now
may be a good time to get into oil and gas investments for the future.
On average, propane and heating oil prices have fallen in New England and Atlantic Canada by
about 10% since January 1st, 2012. The primary driver of heating oil and propane prices is the
price of crude oil, which has been falling since January 1st, 2012. Extreme weather, seasonal
demand, supply disruptions and speculation can also affect short-term propane and heating oil
prices. Therefore, to get an idea of where heating fuel prices could go, you have to understand
where crude oil prices could go.
Historically, in the past, over a period of several decades (and beyond), there has almost always
been a sizable number of what could be called "professional middlemen" who operated in the oil
and other commodity "secondary market" trading industries who are primarily but genuinely driven
by the belief or inner conviction that working as an intermediary in the industry is a reasonable
path to honest living which, if not leading one to an instant wealth, then at least to a reasonable
means of livelihood and steady economic progress and well-being.
We call this the 'get rich quick' or 'get rich overnight' ethic or mentality. That is, the notion and
thinking that just the mere involvement of one in the petroleum trading business, whether as a
dealer or a broker, agent or other intermediary role, will almost automatically guarantee one a
millionaire, in deed, a multimillionaire, station in life, and almost in no time at all! That is an ethic
and mentality that has pervaded the common mindset and psychic of the average intermediary
involved, or contemplating involvement, in the business today, and has been even particularly
more heightened since the modern era of the Internet trading. In a word, it is a mentality that says
that world oil deals and the petroleum trading are a business that is awash in wealth and fortunes
and easily guarantees the intermediary who gets involved in it in any capacity at all, but in
particular as an agent or intermediary of some sort, that, as one analyst put it, "you are going to be
super rich next week or next month" by doing so.
Oil prices have primarily lowered because of concerns over the economic growth rates of the
United States, China and Europe. Slower economic growth leads to lower demand for oil, and
therefore lower prices.
There are several ways that you can make investments with oil and gas, through company stock
purchase, mutual funds that invest in the energy sector or commodities trading. You need to do
research on when is a good time to buy and sell oil and gas investments. Right now, prices are
down, so we are nearing the bottom, because of the state of the economy. As the economy comes
back, oil and gas investments will go up in value.
These events will likely lead to lower 2012 crude oil prices:
Lower predictions for the global economic growth and recovery, and therefore lower oil demand;
No resolution to the European debt crisis, and therefore a belief that Europe's economies will
continue to suffer;
Conflicts in Africa and the Middle East get resolved in 2012 and oil supply increases (e.g.
Yemen, Syria, Sudan and Iran).
These events will most likely lead to higher 2012 crude oil prices:
Decrease in oil supply from African and Middle Eastern countries due to conflict or economic
sanctions (e.g. Yemen, Syria, Sudan and Iran);
Ameratex Energy Ltd Forecasts for global economic growth improve, particularly in the United
States, China, or Europe;
The European debt crisis is resolved in 2012 and Europe's economies improve.
If it's really important for you to predict your budget for winter fuel bills, then you should consider
a Locked in Pricing Plan if you live in NH, Maine or VT, or a Cap Pricing Program if you live in NB,
NS, NF or PEI. With these options, you'll be able to budget for the upcoming heating season. If
you would prefer to pay a market price or are absolutely convinced that heating oil or propane
prices will fall from here, then you can choose a variable pricing option.