Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 24
US House Prices Trend Forecast 2024 to 2026 - 11th Oct 24
US Housing Market Analysis - Immigration Drives House Prices Higher - 30th Sep 24
Stock Market October Correction - 30th Sep 24
The Folly of Tariffs and Trade Wars - 30th Sep 24
Gold: 5 principles to help you stay ahead of price turns - 30th Sep 24
The Everything Rally will Spark multi year Bull Market - 30th Sep 24
US FIXED MORTGAGES LIMITING SUPPLY - 23rd Sep 24
US Housing Market Free Equity - 23rd Sep 24
US Rate Cut FOMO In Stock Market Correction Window - 22nd Sep 24
US State Demographics - 22nd Sep 24
Gold and Silver Shine as the Fed Cuts Rates: What’s Next? - 22nd Sep 24
Stock Market Sentiment Speaks:Nothing Can Topple This Market - 22nd Sep 24
US Population Growth Rate - 17th Sep 24
Are Stocks Overheating? - 17th Sep 24
Sentiment Speaks: Silver Is At A Major Turning Point - 17th Sep 24
If The Stock Market Turn Quickly, How Bad Can Things Get? - 17th Sep 24
IMMIGRATION DRIVES HOUSE PRICES HIGHER - 12th Sep 24
Global Debt Bubble - 12th Sep 24
Gold’s Outlook CPI Data - 12th Sep 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Investing in Green Energy Through Big Oil Companies

Commodities / Oil Companies Jul 03, 2012 - 03:35 AM GMT

By: InvestmentContrarian

Commodities

Sasha Cekerevac writes: There is a growing movement to invest in green energy. The thinking behind this movement is that oil stocks are bad and green energy is good. That type of black-and-white thinking is silly, and it doesn’t appreciate that in life, everything is a shade of gray.


While many think that oil stocks are evil organizations generating as much corporate profits as possible along the way, I think there’s a big gap between reality and perception. Oil stocks are no different than any other business; their goal is to try to generate corporate profits for the shareholders.

If you’re a capitalist, you should be applauding the fact that oil stocks, like all businesses in the world, are trying to create generate corporate profits. I would say that oil stocks are simply doing on a larger scale what every business attempts to do: maximizing corporate profits. Without corporate profits, you have no company, hence, no jobs. We’ve seen what happens when a society is not run for profit through the collapse of every communist nation in the world, such as the former U.S.S.R. China has only succeeded because it’s now embraced the notion that to thrive in the world, businesses must generate corporate profits.

But the shocker for many is that some of the leaders in green energy development have been oil stocks, such as BP p.l.c. (NYSE/BP). Oil stocks have spent billions of dollars on green energy initiatives. BP, for one, has invested over $7.0 billion since 2005. While some might think this is just a PR stunt, I disagree. The truth is that oil stocks like BP see the potential for large corporate profits over the next century. While corporate profits through oil production have been significant, even firms like BP know there’s a limit to how much they can extract. It’s just common sense to use the corporate profits from oil to develop new green energy sources.

Since 2005, the BP Alternative Energy division has grown from just a couple of employees to 5,000 currently. The hunt for corporate profits involves biofuel, wind or solar energy, and any other possible avenue to generate green energy. All of life is based on incentives, and the drive to increase corporate profits is the purest of all. Without this drive, we would be nowhere near as technologically advanced as we are today.

Oil stocks should not be reprimanded for their hunt for corporate profits. This is the goal of everyone in business, from a large organization to a small business owner. Without corporate profits, you have no business and no economy. Everything we have in this world, from cars, to skyscrapers, to air conditioning, has come from one source: the drive to generate corporate profits. Don’t applaud an ice cream maker and then denigrate oil stocks just because you don’t like the product. The market is the truth.

Source: http://www.investmentcontrarians.com/stock-market/investing-in-green-energy-through-big-oil/262/

Investment Contrarians is our daily financial e-letter dedicated to helping investors make money by going against the “herd mentality.”

Copyright © 2012 Investment Contrarians- All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in