Given that the energy sector is the lifeblood of Fort St John, the declining prices for oil and gas are on the minds of a lot of people.
I can’t tell you where the price of oil and gas is going – nobody else can either, by the way – but I wanted to share some additional angles on current energy prices.
For every one cent decline at the gas pumps there is about $1.4 billion in annual cost savings to the US consumer. The money that otherwise would be going into the vehicle gas tank can now go into improving household balance sheets.
I recently had the opportunity to spend some time with the Chief Investment Officer of Empire Life Investments, Gaelen Morphet, who called oil stocks screamingly inexpensive. Please still do your homework, as some energy producers may be cheap for a reason. But when you get a chance to buy a wonderful business at a cheap price that’s an opportunity, not a funeral wake.
By Brad Brain, CFP, R.F.P., CLU, CH.F.C., FCSI