gordontravels

Five Reasons to Invest in Canada

I think it's wise to consider who else uses oil. Some of the largest countries in population want the life we in the states and Canada have. Dow Chemical produces over 30,000 products and need oil. Each and every machine needs oil and fuel.

What is stopping OPEC and Russia from discontinuing market prices and simply setting prices? Even poor Venezuela under the Socialist has priced their economy at $60 a barrel. Mexico's largest field is sucking in salt water and production has declined over the past few years to near 1 million barrels a day and they will become a net importer of oil in less than 5 years. Many major fields around the world are now in decline and injection technology is expensive. Then there's war.

I don't mind riding a horse but it won't be necessary even though I live out in the country. The high prices we just experienced taught many to conserve and the drop in price hasn't turned that around... yet. The U.S. is using 2% less gasoline now than it was this time last year. Oil is being held and refinery capacity is static. One slip and prices go up. Gasoline here was 1.499 a gallon last month. It is now 1.75. The industry will survive and even with alternative energy....

You buy 100 barrels of oil at $40 a barrel. You cut your use and buy 50 barrels and the price is $80 a barrel. What is to stop this from happening?

If the taxes go up in Canada then I would surely look for something that wouldn't eat into my profits. Canada may soon open a stimulus package said to be $50 Billion which is 10% of their GDP. Much less than the U.S. and under a conservative government.

Although I don't consider myself happy to invest in a Socialist Nation I think the opportunities in Canada are good and maybe in the short term or mid... as for the long term... that takes more time to see.