Sounds like a well diversified portfolio. It seems that most of your positions are based on macro trends instead of specific stock picks. Adding some specific stocks like PWE is smart.
A good place for some individual Oil & Gas stocks is Kurt Wulff's www.mcdep.com. He likes PWE.
Check out Ed Ajootian's posts also. He has recommended BZP, and several people have done well - see the chart ;-)
Lots of other good posters here, and on the Canadian Trusts thread.
One major difference between Oil and Natgas - there is a worldwide infrastructure to move oil in almost in direction oil tankers can go, and oil can be move by truck, pipeline, or river barge. There is extensive oil storage but above and below ground - like the strategic petroleum reserve, and all the tanks for both crude oil and refined products like jet fuel, gasoline, etc.
Natural gas is almost entirely moved by pipeline, it needs pipelines to get from the well onwards. LNG shipping capacity is limited, and there are small numbers of terminals worldwide.
If there is not enough pipeline capacity, prices at the well can be much lower than at the destination. Wyoming had far more NG wells than pipeline capacity, and NG prices would be $3.50 while at the other end of the pipeline in Chicago, the price would be $8.50.
Storage capacity for NG varies by country. The UK as relatively little storage, so the price of NG will go from under $4 in summer to over $20 in winter. There is more storage in the US, so the swings are not as extreme if the winter isn't cold and the summer isn't hot.
If you were to consider buying one or two tech stocks, which ones do you like ? |
