Efficient new oil extraction technologies, which helped American oil production skyrocket over the past decade, are causing worldwide problems.
The world’s largest oil company, Saudi Aramco, is 100% owned by the Saudi government. Not only can they can produce oil cheaper than anyone, they don’t want to lose market share, so they keep on pumping.
They’re not alone.
A basic economic law is challenged. The supply of oil has changed, but demand hasn’t budged from its annual 1.4% growth. Supply and Demand must find a new equilibrium price.
Industry disruptions are healthy for the markets and can provide good investment opportunities, if they are handled properly.
We are staying on top of these issues. Give us a call if you’d like to hear how we can help you and your portfolio.
At Enduring Wealth Advisors, we’re focused on the long run!
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results.