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Saturday, June 19, 2010

Small People

So, on the one hand you have BP and their executives, and heck, even the entire oil industry and even the Obama administration that folks are beginning to really hate.

On the other hand, you have these people who, though well intentioned, are going about it all the wrong way.

Here is why.

BP does not make a lot of money off of the individual gas stations. And let me stress "individual" because the retailers are often folks from your neighborhood who depend on the sale of not only the gas but all the impulse necessities that go along with it: like Milk, Donuts, Coffee, Hot Dogs, etc etc...

With these economic hard times, the last thing we need to be doing is putting folks out of a job.

BP makes a lot of money off of the crude oil that it sells. That means they sell the crude oil before if ever reaches the gas pump. In fact, you could buy BP crude oil by products from most any other retailers (not just gas station) in most every area of the economy. In fact it could show up in just about any petroleum based product.

Boycotting BP does not really hurt BP nearly as much as it hurts the small people individual people and families in our communities.

So what do we do?

The problem is not just with BP or the Government but with our nations dependency on oil. Period.

A while back I posted this post about seizing the moment to change our energy dependency. Yes, the president mentioned this during his speech the other night but it was a little late.

The plan, everyone needs a plan, should be to ween ourselves off of oil dependency.

Some say do not buy BP stock. Well, that has already happened. BP stock has been cut in half and is still under downward pressure. In fact, whenever they get around to actually stopping the oil leak, I would argue that it is time to buy their stock.

The big question is how low will the stock price go. I think it is probably at a support level now. If it continues downward, look for a 65-70% reduction then beyond that close to 85-90%.

So, how can we make BP pay up and punish them at the same time?

Well, they have already put up $20 Billion dollars worth of their own capital up for compensation. So, we do not want BP to go out of business.

But believe me, if their stock goes down anywhere close to 90% in value, (that would be close to $10 or less in price), I say buy as much as you possibly can. Because when it goes back up, and it will, you can sell that stock you just made a killing on and use the profits to buy an eco-friendly or natural gas car!

Don't worry, by then gas stations will have plenty of options available for fueling or recharging cars.


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