UripaDs

$125 Oil Not Sustainable for the Time Being

This article is amateurish and totally whacked out when discussing BPT and PWE. These stocks both have limited oil and gas in the ground, so the 10% or 13% yield is not really a dividend as much as prehaps half dividend and half depletion allowance. Because BPT has significantly depleted its reserves since it was trading at $10, that is why its stock price has not kept up with the price of oil in a strictly linear fashion. USA royalty trusts like BPT cannot retain earnings to purchase more reserves. Canadian royalty trusts can and do retain some of their earnings, 20-50% typically, to purchase more reserved at opportune times, so while they may have 10 years of oil left in the ground, ten years from now they may still have 6 years of oil left in the ground due to acquired properties.