Like most of you, I have my own thoughts about the formation of our universe. But in the interest of not getting too heavy here, I'll only say I think it's amazing that so many of the world's hydrocarbon reserves found their way beneath places that are unbelievably remote or politically unstable -- or both. And I think that truism is more than just an interesting geological tidbit. Indeed, I believe it has serious investment implications for Fools in search of energy investment ideas.
Let's start with The Wall Street Journal's description Tuesday of French oil company Total's
For now, Total is a relatively close second to ExxonMobil
But Africa and Russia are far from the only places where "mounting political ... problems will make oil production ... more difficult." Venezuela, for instance, is just the latest example of a place where private oil companies have invested considerable sums to build an energy infrastructure, only to be ousted by government-imposed nationalization mandates. In fact, Venezuela's recent caper, which has involved showing the gate to such major oil operators as ExxonMobil, Chevron
What is the message here for Foolish investors? I believe that it's highly appropriate for investors, given the increasing need for energy companies to search for oil and gas in all manner of dicey locations, to include in their portfolios major companies with the resources to conduct those far-flung operations. I'm speaking here of any of the companies mentioned above, since I believe that those companies will play major roles in maximizing the world's production of oil and gas in the years ahead.
For related Foolishness:
Total is a Motley Fool Income Investor pick.