I can retire as I have a plan
Ok it’s a tad far fetched but it sounds reasonable at 5pm on a Monday after a long vacation from work. I mean what else are you to do when work is dragging out but think about how you will be able to retire early. So this idea was hatched as I was writing my audit plan for my oil and gas client. I was researching the increase in the price per barrel of crude oil over the last 15 years. Well what I noticed was that 10 years ago according to the Energy Information Association (EIA) is that oil was just $11/bbls. Yes just $11. So my thought was since I can’t turn back time I will just prepare for the next time oil bottoms out because it will. Everything is cyclical and oil is not at peak oil right now regardless of what people tell the media nor will we run out of oil anytime soon. Known reserves will last at least 100 more years and there are so many unknown reserves or reserves that are “off-limits” that there could be even more. So that is my position and why I think oil will rebound and decrease in a few years.
So back to the $11/bbls. If you look at the settled price of crude last week, you will see it settled at $141/bbls. That is a $130/bbls profit! So if I would have found a storage tank 10 years ago and filled it to capacity (std at the time was in the 200-250k bbls range) that would result in a $32.5 million dollar profit. Still following me? So my plan is since there are no time machines, when oil does drop Mike and I will just get a loan and find an abandoned oil storage tank and buy a few barrels of crude here and there until we fill it up then when it skyrockets we can turn a profit. We just won’t worry too much about maintenance and the likes and we’ll find a cheap mode of transportation to get it there. I’ll have to fine tune the details when oil drops. Sounds reasonable right?
It is definitely a Monday and I am ready for another vacation or the weekend which ever can come first! Hope your Monday wasn’t as long and drawn out as mine and if it was you were able to figure out your early retirement plan as well without losing your mind. LOL
