I have been wrong
Oil is down almost 50% in 9 months.
BERKSHIRE HATHAWAY BUYS 7.9 MILLION OCCIDENTAL SHARES $OXY
As you know I believe that
1.we are consuming more oil every year. (growth of 1 million barrels per day). In the last 20 years oil consumption that used to be 80 million barrels /day now is 101 ....
2.When you invent a new form of energy the previous one (Coal , wood , ....) is still in use and at the highest levels ever.
3.The world needs energy to live, people want to use i-phones, electric cars, electric bikes, electric watches even all the kitchen gadgets are electric. If the poor become less poor the energy consumption will explode.
4.The easy oil in Pennsylvania 130 years ago was easy oil, it just exploded higher and we just had to collect. that easy oil we spent 1 barrel of oil to extract 70 barrels of oil. now we have to go to the deep sea, shale oil, to dig , to make explosions etc... now we are expending 3 barrels of oil to extract 20 or 30.
If something has demand and it gets more difficult to extract the price should go up with time.
I think if we buy an oil company and keep the oil under the ground and extract in 30 years that will be a good storage of wealth.
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