11-04-2014, 08:26 AM
I am looking to buy COP, despite already having XOM, KMI, BP, and RSD.B. I feel like it's just simply a great value and even if I'm overweight in oil, I'm not worried because 1) these are ENERGY companies and we are going to need energy forever, and 2) I can just simply buy other things going forward. I was actually deciding between COP and NSC as my next purchase, but decided to go for COP just for its size, yield, and value as opposed to NSC (despite the fact that I really could use another railroad).
As for oil being a shrinking commodity, remember that these are energy companies, not oil companies. When the oil wells are dried up, what do you think Exxon Mobil and BP are going to do? They will have long switched their infrastructure to one that revolves around natural gas. I'm sure many of these companies will either be leading the way in nuclear, solar, and wind energy research, or will be investing in plants and facilities once those become a real thing. These are companies that provide energy to their consumers regardless of what form that energy takes. So even as an investor, I welcome these new alternative energies to the market.
As for oil being a shrinking commodity, remember that these are energy companies, not oil companies. When the oil wells are dried up, what do you think Exxon Mobil and BP are going to do? They will have long switched their infrastructure to one that revolves around natural gas. I'm sure many of these companies will either be leading the way in nuclear, solar, and wind energy research, or will be investing in plants and facilities once those become a real thing. These are companies that provide energy to their consumers regardless of what form that energy takes. So even as an investor, I welcome these new alternative energies to the market.