Oil for thought

Received this in an e-mail from my Dad:

"I think everyone should own an oil stock as a hedge against petrol prices. I walk into our servos and hear the punters moaning about petrol (gas) being up 15 cents and I want to sing.........last year the increase in petrol prices probably cost me a $1,000......in the same time Oil Search went from $2.00 to $3.69 so that made me $169,000 ........this year they've gone from $3.69 to $4.60 for another $91,000. In addition I sell options against them that pick me up $6,000 a month and I got $10,000 in dividends. I had 300,000 at one stage but now I'm down to a 100,000 but it sure eases any petrol pump pain, If oil goes to US$100/barrel it'll be bad for the world but great for me. (and to a lesser extent, you). I bought another 2400 ARQ at 1.79 today (they closed at 1.775......up 1.5% for the day)."

I, too, invest in a few of the smaller oil companies. I do not agree with their politics, lack of concern for the environment, etc (except for BP who is a leader in solar panels...but I do not own stock in them) but I do kind of agree with what my Dad says...I never really sweat over the price of gas! The funny thing is, whenever I have met with a prospective investor for my business I always ask the same question: "Why do you want to be in business with me? Why not just buy stocks in an oil company and know that your money will receive a great return." It is the answer to this question that has had me walk away from every angel that has approached me...this is when the true sleaze shows. But I digress, I just thought it was interesting how different people looked at things.

Take care,
Chanta