Portfolio
The quest for oil
Nephew Wilde
" Bell's telephone is as much abused as Einstein's atom" I was saying to myself last week as I rang my stockbroker Wotherspool, "and if I had any manners and could spell, I would be writing to thank him for his sound advice over the purchase of Hestair." Suddenly, however, as though a pneumatic drill had been held to my ear, sharp cracking noises interrupted my train of thought and I next found myself eavesdropping on someone else's line. As a result I now know that the Americans are in Vietnam for the oil!
For along with their warships cruising off the coast of Vietnam, vessels equipped with the latest seismic devices for determining rock formations under water have made exhaustive tests. The results have shown large structures which very likely hold huge reserves of oil and gas. Everyone knows that the US is fast running into a serious energy crisis and would dearly love to secure a ' safe ' supply of oil.
While I have been busy trying t6 substantiate this theory of the true cause for the US's involvement in Vietnam I have naturally come in contact with several whose whole lives are spent on the oil trail and interest in this area has led me to project my research into the affairs of British Petroleum. On the basis of what I have deemed, this seems to be a ripe time for investment. Of course, trade has been running along the bottom and 1972's profits will be poor but an upturn is on the way. So the stockmarket will soon be looking forward to improved profits, with the European economy helping conditions.
Also BP's involvement in the North Sea is bound to attract a good deal more attention and my spies in the Divers Bar in Aberdeen tell me that with the giant rig, Sea Quest, moved to a new block, some news can be expected before the end of the year.
But perhaps more exciting will be settlement of the problems that have hampered the construction of a pipeline from Alaska's North Slope. If my sources of information are correct then news on this front, being favourable to BP, will be announced, again by the end of the year. In times such as these when investors are wary about UK industrial shares, a group such as BP, with large overseas interests, should prove attractive.
Looking at other shares in my port folio, I am pleased with the performance of Eastern Produce, following a fine set of half-time profits. Elsewhere, I feel that the present mix of investments will serve me well. It has been difficult to decide what to sell and eventually it was a toss-up between Booker McConnell and Northern Developments. Booker won so Northern leaves the lists.
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