IGN: You’re going to want to invest in oil and natural gas, right?
Do you want to buy into it?
What are the risks?
How do you know?
How does it compare to other investments?
Is it a good time to buy?
Let’s dive in.
Bethan: What’s the future for oil and coal?
It’s all about supply and demand.
You don’t have enough of one, or you’re going out of business.
You want to make sure you’re getting what you want out of it.
You’re always going to need to be diversifying your portfolio.
You’ve got to diversify, but you don’t want to put everything in one commodity.
You have to diversify, and you have to take your time.
You really want to do your homework and get in on the ground floor.
You need to have a really good idea of what you’re doing, what the market’s going to do, and what your options are.
You should be looking at the fundamentals of the market, and not just what you think the market is going to be doing.
So it’s going be really interesting to watch what the industry looks like going forward.
There are two things to look at: the fundamentals and what the oil market is doing.
The fundamentals are what the world is seeing.
I think we’ve been saying for a while now that oil prices are low, and that’s not just about OPEC, it’s the whole world.
It’s not like we’re seeing some sort of rebound or something.
It is low, it is flat, and the price is flat in some places.
The fundamentals are low.
The oil companies are not seeing a big rebound, and they’re not going to rebound very much.
So that’s a huge factor.
The price is going down.
The world is watching the situation very closely.
The big oil companies don’t like it, but they’re making a lot of money.
And so the world’s watching.
What we see is that, as far as fundamentals go, they’re pretty bad.
They’re going down, but not very much, not at all.
I mean, the fundamentals are not what we want to see.
And it’s not because of anything in particular.
It just looks like that’s the way things are going to turn out.
So, the market really is looking at supply and need.
And that’s pretty obvious, right there.
But you’re also seeing that there are lots of things that are changing, that are really bad for oil.
So you’ve got the sanctions, the oil price spike, the sanctions being lifted, and so forth.
You get a lot more attention than normal because the sanctions are lifting, and a lot less attention because the prices are going up.
It looks like the world may be seeing a rebound.
And then it turns out that the world didn’t really see a rebound, either.
You can’t see anything.
I just think that’s just the way it is.
The markets are not going down very much either.
It could be a temporary rebound, but we’re not seeing it.
That’s what I think is going on.
It may just be that the market was going down because the world was watching, and maybe that’s why we’re hearing all of this talk about oil.
You see a lot that is going up in the oil industry, right, but it’s also a lot happening in other sectors, like manufacturing.
You saw that the Dow was at record highs, right.
And you see some other things like that.
But the fundamentals, they don’t look great.
The Dow is way down, it hasn’t been that good since the 1980s.
And manufacturing, I don’t think we saw a big boom there, right now.
So, it might just be the way the world looks.
And the world isn’t going to see a big recovery.
So you’ve seen a lot going up lately in energy, right in the last couple of years.
Do you think that this will continue?
What is the oil and energy industry like today?
It seems like it’s just been on the rebound for a few years now.
Is that fair to say?
Is the oil supply a lot higher than what you’ve been seeing?
And what’s the demand?
Is that what’s driving this?
How does oil compare to the other energy sectors, which is the consumer?
What is it like to be in that industry, how do you think you’re different?
Well, oil is a little bit different than other energy fields.
It has its own unique blend of things.
You look at coal, and coal’s not all that much different than oil.
But if you look at gas, the difference between the two is really not that big.
So the way we measure supply and use, we don’t do it in terms of barrels.
We measure the amount of stuff that’s on the planet.
The amount of oil that’s left over after