nycDem

Is There an Oil Crisis Looming?

Great article. I guess what it boils down to is that the price of oil may be peaking right now (and in fact may soon retrench)....but a few years down the road the reality of our dependency upon a finite, non-renewable resource is going to hit us hard.

Frankly, I welcome it. We need a "Manhattan" project for energy. The internal-combustion engine is going the way of the horse-and-buggy - and none-to-soon in my opinion.

On the investing front, I've got call options on DUG...which have performed nicely. I'm still invested in natural gas stocks as well as deep-water oil rigs (on the assumption that these guys are going to be in business for a while trying to reach hard-to-get-to oil deposits).

The big concern is another freak-out in the equities market if oil continues to go higher. This will drag everyone down. I've got put options on SPY and call options on DXD for just this reason.

Better to hedge and be able to sleep at night than wake up and find out your portfolio's been cut in half.