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Question: Why investors are more like to invest in oil and gas industry?

(Posted by: baballiye on 2010-03-06 05:55:23)

I am currently writing dissertation on topic: "Usefulness of Financial Report towards to the investment decision in oil and gas industry " I would be grateful by regarding my question. Yours Faithfully Aliyu A. Aliko

Posted by: Lemon on 2010-03-06, 05:59:34

They are more likely to invest, because they know the price will have to increase. The world is completely dependent on oil, gas, and other fossil fuels because we all need them and use them every single day. Also, there is a limited amount, and with supply and demand well, the price should increase. Although, there is actually enough fossil fuels just in alaska to power the world for the next 150 years, but the US Goverment of course wants to save it, so that in the next 300 years when its all gone, the person that has it, will be able to charge whatever they want for it.

Posted by: sheshu on 2010-03-06, 08:20:22

The world we live in has widely accepted oil & gas as the best source of energy. especially for auto industry. so when more and more autos come on road the demand increases and as the resourrce is limited the companies can charge a good rate (Means higher ROI for investors) so investors like investing in this sector more often

Posted by: jeff410 on 2010-03-06, 11:41:56

Usually its high income individuals who need a tax write off who invest in oil and gas.