The most political liquid ever. With oil being selected as the latest financial weapon to attempt to criple Russia, which in itself, is a whole vista of separate conversation, nobodys like us pee-ons - (if you dont have 100 million dollar net worth - you are a pee-on, and even the figure is generously low) - have had to change our thinking when investing in the black stuff
Gone are the days when you could count on a dividend that came in every month. Those types of stable steady security became targeted by the elite who dream and lust over how to steal all that wealth. The last 24 months have proven to be a winfal for those who yearn for us to just die. Wars mongering is only one, albeit extremely effective way.
Still have to live, still have to make a living, however I personally no longer work the traditional job-holding way - alas I digress.
The point is, as an investor, if you are going to put money in oil, despite the volatility, you MUST FIND a PROFITABLE company no ?
Here is the latest round of oil politics:
Roller coaster ride designed to shake the sheeple
The U.S. political elite are engaged in a battle with the U.S. banking elite over oil. The political side wants, once again, to try to punish Russia's economy (good luck with that) and a side benefit: continuing starvation of the Saudis. The collapse of the Saudis is a primary mid-term goal because then the U.S. would forgoe having to honor their commitment of 3.x trillion dollars worth of T.Bs held by that nation, all the while selling them billions$ of weapons.
conversely, the banking elite need oil to stay at the 50 dollar level so as to preclude the big banks bad investment idea of shale oil. while It is true that the U.S. oil output is rising its not enough but it is enough to market the notion to the sheeple as "energy independance" Nothing could be further from the truth.
It has been posted on this board that the Ausies dont get to excited about things like the Yanks do. Seems this has borne through. Despite the nonesense bullsh!t posted from the API, EIA, and alphabet acronym soup, coupled with the constant barage of this cr@p coming outa ZH (ZeroHedge) (dont get me wrong, I like ZH but they could do with a lot less oil fear porn) - we will still need oil for the next 30 years minimum while transitting to whatever next energy form(s) comes of age.
We simply cannot lift a Boeing 767 777 787 or an A(irbus)320 off the ground with electric engines. Ships are a different story but still not all the way there yet.
That leaves oil as the king of "cheap" powerful energy. Be not fooled, the explosive energy from fossil fuel is one of the reasons why it is where it is today. There are others .. but again, whole different vista of conversation.
It boils down to this: While Newport, like any other company involves risk, where oil prices are concerned, it is hedged quite well as delineated in Mr. Consultant's summary of the company's business model just a couple posts ago. This company still makes money at $25 oil. Not as much perhaps, but still does, which means it survives and at its current price, is very much worth owning - especially given developments of late.
Which is a lot more than I can say for those names who once commanded both respect and a price, are now on their knees scraping and cutting to get by. Some have learned to become much more efficient and perhaps will survive, but more than a goodly poriton .. will not. Such is the nature of survival of the fittest
GLTA