Investors, regardless of the investment sector, are always looking for a sure thing. While there’s many investments that may look promising at some point, few of them turn out to be the sure thing that they were advertised as. One particular type of investment that has been a proven winner year after year is found in the energy sector, and more pointedly, the oil commodity industry. While oil investments tend to be extremely volatile, this particular investment has proven to be successful, regardless of how topsy-turvy the oil market can be.
This investment, while firmly ensconced in the oil industry, has little to do with drilling or refining oil. This particular investment is in the companies that transport either crude oil or refined petroleum products. The reason why these investments in petroleum-based transport companies makes the most amount of sense is because the fluctuating prices in the energy sector don’t affect these companies. These transport companies transport oil. This investment has more to do with the demand for oil and refined petroleum products than it does with the actual market price of these commodities. Since demand is constantly growing, these investments have continued to outperform the market year in and year out.
Another reason why these transport companies make for a good investment is the innovative ways that these companies use to move crude oil or refined petroleum products to storage facilities or transfer stations. One example of this is transporting refined petroleum products via barges. What might surprise people is that river traffic of petroleum products have grown from roughly 5 million barrels in 2010 to nearly 40 million barrels as of last year. In addition, there are transport companies that also provide diesel engines for the extracting of shale oil. Once again, this equipment is going to be needed regardless of what the market price for a barrel of oil is. This makes these particular company investments extremely appealing.
If you’re looking for a profitable investment in the energy sector, transportation companies have been a go to investment for many savvy investors and they continue to be profitable. If you need more info, all you have to do is read the various articles and recommendations touting the benefits and the profitability of investments in transportation companies.