Oil in the Mailbag and Four-Legged Profit Opportunities
It pays to be patient.
Because regardless of what’s happening in the financial markets, there are always profit opportunities ahead.
And they’re not always the next big innovation, either.
As Charles shared this week, some of the best opportunities are often right next to us.
So, if you missed it, be sure to catch up below on the advantages you have in the market right now…
ICYMI: How the “PayPal Mafia” Paved the Way…
Silicon Valley owes it all to PayPal.
Today’s biggest players in the tech industry — like YouTube, Facebook and even Tesla — all got their blueprint from the payments company.
Charles recently did a deep dive on the “PayPal Mafia” by sitting down with award-winning author Jimmy Soni.
Together, they discuss how the company’s founders and earliest employees changed the world forever.
Don’t miss their insights. You can listen to their interview by clicking here … or watch it on YouTube by clicking the image below.
Senior Managing Editor, Real Talk
Real Talk, Real Readers…
The different takes on oil and renewable energy continue to pour in. Got one of your own? Send it in at RealTalk@BanyanHill.com!
From Kenneth C.: Mr. Charles, I saw you on Newsmax with Heather and Bob. Great job laying it out on oil prices and the politics of it. Keep up the good work and thank you!
From Gary B.: Your points are well made. It’s sad that so few of our representatives understand the reality of their agenda!
From Brett R.: I hear there are some “slamming” you for your take on high oil prices and the causes. But my kudos to you, you are right on the mark!!
Some people will believe anything that anyone “on their side” tells them. They can’t handle the truth because it strays from their utopian vision of the world order.
Again, thank you and keep up your good work on finding values in the market.
From Leonard F.: Like you, I’m driving a Tesla. I bought mine early with a deposit in 2012 because I wanted to save the planet. Truth is, I love driving electric. Nothing compares.
I’m not sure politics has anything to do with the gas price at the pump, however. Oil is a global, but inelastic commodity. Demand can go up and down quickly (see 2008 and 2020), but the supply responds in its own time.
Here in Canada, we have a surplus of oil production. But we pay the same at the pump (taxes) as everyone else. The reason is that our oil producers get the world price on oil. No discount for Canadian refiners.
American production has been pretty consistent over the last six years, at about 10% of world production.
With these high prices, oil companies have no incentive to invest in new production, especially since they cannot control the world price for oil. The memory of negative prices two years ago is very fresh. It makes more sense to sit back and collect the revenue, pay dividends, pay down debt and buy back shares.
The Keystone XL pipeline would’ve been good for Canada and the U.S. by assuring North American oil security. But it would not have moved the global price of oil one bit.
Keep up the good work! My Alpha Investor portfolio is my best performer.
From Julio V.: Hi, I’m a new reader and subscriber. I’m enjoying it and look forward to achieving some gains following your recommendations.
I read and enjoyed your piece on renewable energy. I agree with most of it, but feel that you, as most writers do, missed the key point.
Namely, that it is not and never has been a stark dichotomy of either fossil fuels or renewable energy. It is about both. It’s about reducing and eliminating the burning of fossil fuels and the destructive emissions.
Because those emissions damage the Earth’s atmosphere at great harm to humans, plants and animals. We know exactly how that damage occurs and how much of it occurs. So, we have a responsibility to rapidly reduce our current manner of burning fossil fuels and creating aerosols and other volatile compounds from fossil fuels that degrade and destroy the healthy balance of our atmosphere.
The most immediate and actionable thing we can do is to encourage and accelerate development and utilization of alternative energy. And the second-most immediate and actionable thing we can do is to encourage and accelerate development and use of portable electric energy in batteries for use as a replacement to petroleum and natural gas fuels for mobility.
So, please don’t join the unknowledgeable and politicized voices hammering on the incorrect dichotomy that it’s either fossil fuels or renewable energy. Doing that simply prevents us from reaching a consensus on what to do and getting on with doing it. Let’s all bring some common sense to the public debate, not merely join a side and loudly scream at one another.
What President Biden is doing is correct and helpful. He’s encouraging development and usage of energy harvested from renewable sources. And you and your family buying and using electric vehicles is a good thing!
Thank you for reading this. Cheers!
From Dori H.: I’m so grateful to those who wrote in to question your partisan rant. Perhaps that’s overstating it, but I found I was unable to process the content of your words because I was so incensed by your rhetoric.
Typically, I agree with your methods for evaluating stocks and companies and I think it reflects an effective sensibility that I respect.
However, it is difficult for me to respect someone that pushes their political agenda under the guise of an oil industry analysis.
From Joe S.: Hi Charles, oil companies have money to burn. And they do burn it! They just don’t invest it in the oil business. There are thousands of unused oil permits that they’re sitting on. Do we really think the Keystone Pipeline would lower prices now? I don’t think so, especially since it’s aimed at increasing oil exports.
The only way to decrease prices now is to get nations like Saudi Arabia to turn on the taps. Maybe they would, if the bribes were high enough. But I don’t want to be even more of a slave to them than we are right now. Do you?
From Arthur B.: I think we all agree that, in a perfect world, clean, non-polluting energy would be wonderful. However, let’s talk reality.
Generating this “clean energy” takes generators, manufacturers, delivery systems and employees who need to fuel their vehicles to get to work to make all these products and processes.
Whether we like it or not, fossil fuel will still be required to reach that “perfect world” scenario for a long time to come.
So, let’s be realistic and tell Mr. Biden to take his hand out of China’s and Russia’s pockets and focus on reality and America first. In time, we may be able to attain a cleaner world. But for now, let’s focus on our people and economy.
From Sandra C.: I have a rebuttal for Andy B. from last week. His response was typical regarding green energy, oil, etc. Obviously, he knows little about clean fossil fuel or its importance to our security, productivity or standard of living!
Common sense must recognize the limitations of the day; new energy must be eased into. We are not there yet. But instead of a step-by-step process, we are being forced toward an all-or-nothing approach that’s killing America and not the will of the majority.
Here’s some food for thought… How many of Biden and his crew drive EVs? It’s another “do as I say, but not as I do” situation. The Bible clearly states how the world will end, and it’s not climate change or fossil fuel.
I had to air my views. Thank you, Charles, for your sensible positions. That’s rare these days. (And yes, I, too, joined because of Palin and Huckabee.)