a blog dedicated to the discussion of MASTER LIMITED PARTNERSHIPS and the day to day news related to the group...along with perhaps a few other things...as long as the conversation is kept civil. Although i have no problem telling you what i am doing regarding my trades...PLEASE DON'T ASK ME WHAT YOU SHOULD DO REGARDING WHETHER TO BUY, SELL OR SHORT!!! i am not in the stock business.
Tuesday, January 22, 2008
Rallying well off the lows now down only 7 on the MLP index and 155 on the dow. Looking more and more like we've had a climax low in here.
Oil and natural gas demand tend to be fairly inelastic. In general, you don't see wild swings in demand just because the economy slows or even goes into recession. People still need to heat their homes, drive to work, etc.. Instead, you tend to see relatively constant growth of 2-3% a year total (for the entire industry.)
A few things we need to try and get a handle on:
ReplyDeleteWhat impact will a slowing economy have on volumes in the pipe?
What impact will a slowing economy have on financing and the ablility to get projects funded?
Will a slowing economy slow drop downs and expansion projects?
Will distribution increases halt?
Alot of other issues WILL impact us.
Oil and natural gas demand tend to be fairly inelastic. In general, you don't see wild swings in demand just because the economy slows or even goes into recession. People still need to heat their homes, drive to work, etc.. Instead, you tend to see relatively constant growth of 2-3% a year total (for the entire industry.)
ReplyDelete- Roulette