Oil

I know that this page maybe a bit odd for a basic investing site, but I find that oil plays a major part in the stock market. Petroleum has an effect on the market like any other major news that hits the airwaves. The effects are to some degree amazing. This precious and in short supply commodity has a hand in every aspect of our lives. I decided to write about it since it is important to your investing futture.

Petroleum is one of the most important resources in our planet. Petroleum is found in rock formations in the upper part of some areas of the Earth's crust. Everyone needs it and everyone wants it. We depend on this precious resource in everything we do, such as; gas for cars, diesel to power trucks, airplanes as well as heating oil to warm our homes. It is also used to make almost everything, we use it to build things since oil is needed to lubricate the machinery to make products. It's also used in many chemical products, including, solvents, fertilizers, pesticides, and all plastics. The world uses approximately 85 million barrels of crude a day and growing. OPEC (Organization of Petroleum Export Countries) is responsible for extracting fossil fuels, which includes natural gas for most of the world. About 60% of our fuel comes from the Middle East. The countries include; Saudi Arabia, Iran, Iraq, Kuwait and Venezuela. However, many others have joined the organization since its inception.

I want to bring up an important investing fact. Although many folks many disagree, but oil may have reached its peak last year. We are at a point in human history where petroleum is on a decline. The demand for it keeps growing as emerging markets continue to grow, more and more of this vital resource if needed. However, no new reserves have been discovered in the last 30 years. In order to combat this decline alternative energy is the latest trend to hit the market. Huge investing opportunities exist in alternative energy. Countries throughout the world are making strides in alleviating the problem by increasing their use of alternatives, but we're so behind that in order to make a significant impact, it will take years. However, we're starting to realize that this is no longer a thing that we can put aside. We need to work harder to achieve independence from fossil fuels. Make no mistake oil will be around for a very long time, but it isn’t going to get any easier to extract the fossil fuels from the ground or from the ocean floors.

My advice is to look for ways for you to play the energy sector and invest accordingly. There is a huge potential to make some serious money if you dedicate some time to study and research the industry. I will mention a few stocks here that will benefit from the crisis in the years to come. Good luck and prepare for the upcoming crisis.

Stocks to consider: General Electric (GE), Trans Ocean (RIG), Valero (VAL), British Petroleum (BP), Suntech Power (STP), Baker Hughes (BHI) just to name a few.

I will continue to add to this space in the near future. Again, I feel that energy is a major way to invest in the market along with alternative energy such as Solar and Wind. The demand for fuel will be with us for a very long time. Areas that will benefit from energy are companies closely related to the extraction, processing and delivery of oil to all parts of the world.

Click this link to get more information about Peak Oil.