Oil and energy- two imperative places to be for investors looking to make money in the marketplace in a relatively safe manner. These two areas will also see potential. As long as humans rely on energy and oil to thrive, it is a comfortable bet. With that said, the oil and energy opportunities may not rest in the drilling of oil directly or the proliferation of fossil fuels. They may lay in the places where oil is essential, but not the “main job.” Below is a look at how oil investors are looking at an industry they always trusted in a new light. They are looking at how oil is transported.
The Use of Transport
Oil always needs to be transported in some fashion. Some of the biggest stock rises of the last decade happened with oil transport. One company saw a 455% increase since 2009, which is about twice the amount of the S&P 500 average. It clocked in at 195% during the same period. The companies seeing these increases are not huge, either. Here is a great site to read for more on oil transport.
This is incredible, and it isn’t slowing down. The cost of oil has almost little direct impact on the transport of oil. A barrel of oil is still a barrel of oil at $50 or $500. It still weighs the same amount. The cost fluctuations in oil in 2016 were not apparent with oil transport companies. Transportation could come in the form of transportation technology development, the manufacturing of vehicles, and even storage. These are just three obvious ways transportation is evolving in 2017 for oil.
The oil and energy industries are always big-ticket places to be. There is a lot of money to be made. The argument here is that the various methods for making huge money in oil and energy have little to do with wells and drilling. The places where the most opportunities can be found may rest in the fringes of the industry. These are places where oil production is paramount, but not the direct task of the business. The companies create energy batteries, transport systems, and other tools to enhance oil, not find it.