These days it’s easy to be complacent about the price of oil. OPEC—the Middle Eastern cartel that once ruled the price of crude—is a shell of its former self. Thanks to exploration technologies, the U.S. is now a massive exporter of oil. And if Elon Musk has his way, we’ll all be driving electric cars in no time. So why would anyone want to buy stocks in major energy companies? Because, to be sure, the bear case for oil is way too simplistic. First, while electric cars sound good in theory, try buying one (they’re superexpensive), and try traveling long distances in one. (You can’t get very far.) In other words: The electronic-car revolution is a long ways off, which is why all those spaces at Whole Foods reserved for electric cars are still filled with gas-guzzling SUVs.
What isn’t a long way off is the huge demand in China and elsewhere for oil to fuel factories that employ millions and the cars for millions of people in the middle class.
Sure, oil is a finite resource, but economies around the world will be demanding oil as a resource, which is why the oil business is here to stay at least for a while and the stocks of energy companies will remain, for now, really good investments.
Charles Gasparino is a Senior Correspondent at Fox Business Network and a columnist for Men’s Fitness. Follow him on Twitter.
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