The oil price poked its head up over US$100 again this morning.
You might wish you lived in a world without oil troubles. Your car would be less expensive to run. Your house would be cheaper to heat in winter.
But there are two sides to the oil price. On one side is the bloke who pays it. One the other side is the guy who accepts that payment. When oil prices are high, who would you rather be... wouldn't you prefer to receive the higher price?
Woodside (ASX:WPL) is the big name in Australian oil. It's the guy who accepts. Have a look how it's been doing over the last month.
There's no mystery here. The guy who accepts has been winning.
Will he keep winning? Our guess is yes. Oil production is finite. If we can extract every single drop of oil we know about, it'll last for 300 years. But that's not the point. The point is the rate at which we can extract that precious energy. It might have already peaked.
If that's true, it means the amount of oil we have to go around will begin dropping, even though it should keep flowing in some form for centuries. That's good for the guy who accepts, if he can keep producing oil.
Al Robinson
The Daily Reckoning Australia
P.S. to get The Daily Reckoning direct to your inbox sign up to our free e-mail newsletter or if you prefer to use RSS, subscribe to the Daily Reckoning RSS feed.
Related Articles:
- None Found
About the Author
Dan Denning is the author of 2005's best-selling The Bull Hunter (John Wiley & Sons). He began his financial publishing career in 1997 and has covered financial markets form Baltimore, Paris, London and, beginning in 2005 Melbourne. He’s the editor of The Daily Reckoning Australia and the Publisher of Port Phillip Publishing.
