BP (BP)

The supply of oil is going down , no matter what anyone tells us.

BP is into alternative energy big time ! Wind energy is just one form of energy they have invested heavily in.

In February 2009, BP formed a joint partnership with Verenium to build a cellulosic ethanol plant by 2010 and start producing ethanol by 2012. Through the partnership, BP and Verenium will be able to produce and sell biofuel products that can be mixed with gasoline to produce less-polluting fuels. The biofuel market has the potential to increase 6 times its 2007 levels by 2022 due to U.S. Federal mandate .

We are at or past an oil supply peak. New discoveries are not replacing oil at the rate it is being used. Oil prices are low (if one considers 6-7 times the price as of a few years ago low) now due to a lowering of demand and reductions by OPEC in production. Both increased demand due to better economic conditions and depletion of current in-ground oil inventory with an insufficient rate of replacement are reasons to expect oil prices, and BP's profits to rise over the next few years.

The recent discovery of a 'giant' oil field in the Gulf of Mexico is a very important boost to BP long term prospects considering how they are able to add to their oil reserves at a time when many major oil companies’ holdings continue to be depleted.

Let’s say 1 billion barrels of oil were recovered from the Tiber field in Mexico. If that oil were valued at only $15 per barrel, it could be worth over $11 billion to BP, if it can just navigate the challenges of developing the field^[1].

1. ↑ "British Petroleum Big Profits" Article on InvestmentU

since bp is diversified in many energy technologies they have the ability to maintain profitability and the ability to keep paying at least the same dividend

being diversified in many technologies gives bp the flexibility to shift into emerging technologies as demand flows from one technology to the next

i like this company for the dividend and will continue to dollar cost average as long as financials indicate a continued ability to pay the dividend

Vertical integration, i.e., involvement in both upstream (exploration and production) and downstream activities (refining and marketing) enables higher efficiency for the company.

Since its operations are diversified across different geographies, the company is less vulnerable to unfavorable conditions in a single market.