Oil Is A Big Part Of Everyday Products


As oil prices rise and fall due to supply and demand, you may be considering when is the best time to exercise your opportunities for investing in oil companies. In an ideal market, you would like to make your investments when the prices are low and sell when they are high. Some investors, however, become fearful when their stocks plummet and sell them at a loss. These same investors often buy stocks at their highs when they see that others are making money on them. These investors are operating exactly the opposite from the ideal.


investor principles

In order to become a successful investor, you might want to follow three principles of one of the most successful investors, Warren Buffett.


  1. When prices are low on oil or any other commodity, consider that an opportunity to buy something on sale. Don't think of the low prices as something to panic about, even if the prices drop when you own the stock, there is a good chance for recovery. Since oil is used in so many products, and low prices are resulting from too much supply, and not enough demand, there is a great likelihood that oil prices will increase if the supply diminishes.
  2. You will want to look for stock in a "wide moat" company. What this means is that the company is most likely to be secure. There are several reasons for that security and the likelihood that it will be successful in the long run. The company may have excellent management and a superior credit rating, which allows it to borrow funds during difficult economic times or when it wants to acquire another company.
  3. Look for stocks that have a "margin of safety". This means that you'll want to look at purchasing stock from companies that trade the stock for less than its book value. The concept behind this is that even if the price per share continues to decrease, you are still buying the stock at a discounted price.

The bottom line is that if you are buying stock that you believe will recover in the long run, hold on to the stock even through the ebbs and flows of the market. You may not get rich instantly, but you may be able to build wealth in the long term if you focus on these simple rules and aren't caught up in the chatter of what others in the market are doing.


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every products that use oil


Evolution of Unusual Uses of Petroleum


As previously indicated, oil is a commodity that has a likely economic recovery so that it is a good investment for the long run. As petroleum products result from the processing of crude oil, it is important to note the number of products that list petroleum as one of their ingredients.


Petroleum-based products include a variety of fuels as well as fuel oils used to generate both electricity and heat. While many people are aware that petroleum-based products include these types of fuel items, did you know that petroleum-based products are in many of the synthetic materials that we use every day?


While many people realize that Vaseline petroleum jelly, a product found in many households, is a petroleum product, did you know how it came into existence? Chemist Robert Chesebrough was able to patent the method of turning oil well residue into petroleum jelly in 1872. Later, in 1913, a lash darkening product by the name of Maybelline was invented when Thomas Williams noticed how his older sister combined Vaseline with a substance to darken it so that she could put it on her lashes.


petroleum jelly

Not only did petroleum play a significant part in the evolution of the cosmetics industry, but it is responsible for the color of our car tires. Prior to 1910, car tires were white, and it wasn't until B.F. Goodrich Co. made an addition to the vulcanizing process, creating the color carbon black. Carbon black is actually the product produced when oil and natural gas combust in a controlled environment. Tires with carbon black are superior to their predecessors because they are both stronger and more durable.


Did you know that petroleum-based products started appearing in candles and candy as early as the 1920's? A petroleum distillation byproduct featured not only in candles, but also as a wax sealant and in certain types of candies.


Agriculture


Manufactures use petroleum to make ammonia, the source of the nitrogen found in fertilizers for agriculture. Inventor Fritz Haber invented a way to produce large amounts of nitrogen for use in industry during the early part of the 20th century.


The process is twofold. First, sulfur and hydrogen sulfide are removed from methane. The methane reacts with the steam over a substance that acts as a catalyst, and produces both carbon dioxide and hydrogen. The second step, which is actually the part indicative of the Haber process, is when nitrogen and gaseous hydrogen react at a very high temperature, forming ammonia. This ammonia is then added to fertilizers.


Anesthetics


It may seem rather unusual, but did you know that you can find products that use petroleum in common anesthetics? These substances are often used to limit someone's ability to sense pain during surgery. Many of these anesthetics are made from the substance called ethylene, which has neither color nor odor.


Artificial Turf


One of the main ingredients in artificial turf is crumb rubber.


crumb rubber

Crumb rubber is also known as recycled tires, and contains chemicals such as carbon black and benzothiazole. Carbon black is made when there is the combustion of products that contain petroleum.


Asphalt


Another name for asphalt is bitumen, which is a form of petroleum that is partially solid. This is actually different from tar, which, though similar, is a product of coal. We mainly use asphalt to pave the many millions of miles of roads across the globe.


Cars


Though most cars that need fuel use petroleum-based products to run, many parts of a car are also made of plastic. There are many parts of the interior of a car as well as the exterior made from plastics. The use of plastics has evolved on cars because of their high-performance ability and improvement on fuel economy due to reduced weight.


Car wiring, hoses and fluids such as antifreeze and motor oil also originated as crude oil.


Cleaning Products


Many of the ingredients in cleaning products are petrochemicals or petroleum-based products. Substances like glycerin, found in many cleaning products, are petrochemicals or petroleum-based products. Substances like glycerin, found in laundry detergents, also feature petrochemicals.


Cosmetics Using Petroleum-Based Products


Did you know that many of today's cosmetics items list petroleum as one of their ingredients?


consumed oil

In fact, only 50% of consumed oil goes into making gasoline.


  • Body lotions are made with substances called occlusives. Occlusives help seal moisture into your skin and prevent it from evaporating. Vaseline petroleum jelly, the ultimate occlusive, has the ability to reduce the loss of water to the skin by 99%. Another occlusive made from petroleum is mineral oil, which is liquid petroleum.
  • Many lipsticks are made using petroleum. The paraffin that helps shape lipsticks and ensures a smooth application comes from petroleum.
  • Face creams may be pricey, but some of them consist of up to 80% petroleum or petroleum-based products. Often-used ingredients in cosmetics include perfumes, dyes, waxes and substances made from petroleum. Additionally, you can find petroleum in shampoo, hair colors and conditioners.

  • petroleum products

  • Toothpaste uses several derivatives of petroleum. They use poloxamer 407, a petroleum product used in- order for ingredients with oil bases to dissolve into the water-based part of the toothpaste solution. Petroleum-based dyes are also found in toothpaste and include D&C Red #30, D&C Yellow #10, as well as FD&C Blue #1.
  • Dentures obtain their coloring from dyes that have a variety of sources including petroleum, vegetable sources and coal.
  • Anti-perspirants and deodorants often contain a substance called propylene glycol. Propylene glycol serves the purpose of making the products go on easier, and makes them softer.
  • Colognes and perfumes also use propylene glycol, as the substance helps to keep the expense lower while making the scent last longer. The scent lasts longer because propylene glycol helps keep moisture on the skin.
  • Contact lenses, less surprisingly, are made from polymers that have petroleum as a primary ingredient. Polymers in contacts give the contact lens the ability to breathe by letting oxygen into the lens.

Crayons


Each crayon is made from paraffin wax, which is a petroleum based product. Paraffin wax also has a number of other uses and may even be used to add shine to apples or to make chocolates more glossy.


Fabrics Used in Pantyhose


Whatever you call them, companies make nylons and pantyhose with a material that is a petroleum derivative, invented by a DuPont chemist in 1935.


pantyhose

The same nylon product is also used to make a variety of products including parachutes and dish scrubbers.


Food


In some respects, it may be a total surprise that petroleum-based products may have touched your food. For instance, these products often feature in pesticides and can be found in food colorings, preservatives and flavorings. Essentially, petroleum-based products help produce food faster and help it to last longer.


However, one of the most unusual uses for petroleum-based products is in chewing gum. Petroleum derived products found in chewing gum give it its elastic properties and lasting texture. The base of gum consists of paraffin wax and polyethylene, both petroleum derivatives, as well as natural latex. However, when first invented, chewing gum only used a natural latex substance also known as chicle.


Fuel


Most all of us recognize that fuel like gasoline, jet fuel, and diesel fuel all come from petroleum products. These three petroleum products make up a large amount of the use of petroleum. While these three types of fuel are for the same purpose, to drive engines, there are minor chemical differences in each that make them suitable for use in different engines.


Insulation


To keep your home warmer in the winter and cooler in the summer, you need sufficient insulation. This means that even if you use an alternative fuel source to heat your home, you will need the insulation made with petroleum-based products to help regulate the temperature.


Kitchen Items


Did you know that your kitchen is filled with products made from petroleum?


non-stick cooking pan

Plastics made from petroleum-based products make up most of the exterior of your refrigerator. The coating found on non-stick pots and pans is also petroleum-based. This coating not only gives the surface non-stick properties, but it also enables the pots and pans to be more resistance to the high temperatures of the stove.


Lubricants


It is not hard to believe that lubricants use petroleum-based products, especially products such as motor oil. But did you know that other petroleum-based lubricants are found in candles?


Medicines that Use Petroleum-Based Products


While it makes sense that petroleum-based products are used in cosmetic items to give them appealing properties, did you know that many medications also use petroleum-based products?


Benzene is a popular ingredient in quite a few medications. This petroleum product is used in aspirin and many other medications that you can find over-the-counter. Ironically, many homeopathic medications use petroleum-based products.


Vitamin capsules are also made from petroleum-based products, even many of the vitamin capsules that claim to have all natural properties.


Plastics


It probably comes at no great surprise that most plastics are made from chemicals derived from petroleum.


plastic products

Plastics are a huge part of our everyday lives, found in everything from our water or soda bottle to our laptop computers. An estimated 4-5% of petroleum in the U.S. is devoted to the making plastic products.


Almost anything that you can buy in a store uses plastic even if it’s just in the packaging. Plastics are used in bumpers on a car, almost all electronic devices (cell phones, cameras, speakers), toys for children and even shoes. 


Sanitary Products


Most women's sanitary products, such as tampons and sanitary pads, contain chemicals made from plastics. Phthalates which are plastics originating from crude oil give the smooth look to the tampon applicator.


Solar Panels


By using solar panels, you can become totally reliant on an alternative energy source. Did you know that most of these solar panels use plastic in their cells? Some companies who sell solar panels are starting to use more bio-plastics so that they can avoid having cells made from petroleum-derived materials.


Styrofoam


Styrofoam comes from polystyrene, a substance that is also present in PVC products. Styrofoam and PVC products were both invented because of the industrialization after World War II. 


Synthetic Fabrics


Think of all the fabrics you know that use nylon, spandex, polyester and acrylic. All of these are petroleum-based products and can be found in a variety of fabrics, some that you wear and others that you don’t. They are featured in fabrics such as clothing, curtains, couches and carpeting.


When used in couches, petroleum-based products are often found in the cushions, which may contain foam made out of polyurethane. Did you know that even the linoleum tile on your kitchen floor may contain a petroleum-based product?


Petroleum-based products are an ingredient in artificial furs and the flame-retardant coating on pajamas for children.


While cotton is a favorite clothing material, no one can dispute that cotton clothing often needs ironing. Many wrinkle-resistant clothes are made from petroleum-based products.


wrinkle-resistant shirts

Even the hangers used to hang your clothing are from petroleum-based products that strengthen the hangers.


Synthetic Rubber


Did you know that instead of using latex in the manufacturing industry, some manufacturers choose to use synthetic rubber? Because synthetic rubber is very durable and strong, it is often used in tires and sporting goods. Wire and cable insulation uses synthetic rubber, but it might have more widespread use if the cost wasn’t greater than that of natural rubber.


Why Investing in Oil is a Good Idea


There are some particularly good reasons to invest in oil. OPEC members such as Venezuela, Qatar, and Saudi Arabia, along with Russia planned to keep their oil production at the levels they were in mid-2016. This kind of an action has the result of reducing the supply of oil so quickly that prices may increase just as quickly. When inventories decrease, prices are increased, as are the values of stocks.


The demand for gasoline continues to grow. Not long ago, the United States lifted an almost forty-year ban and is now able to export crude items. The release of this ban may enable the demand for crude oil to increase, therefore increasing the value of stock United States oil.


Consider this simple scenario. Oil is involved in almost each part of the production of a water bottle.


water bottles

It is involved in the energy used to make the bottles, and petroleum-based derivatives are part of the plastic of the bottle. It is part of the ink used to label of the bottle. Moreover, fuel is necessary to power the 18-wheeler vehicle that brings the bottles of water to the grocery store where you purchase them. To top it off, fuel is necessary to power the display that houses the bottles. Fuel is also necessary to power your car that you drive to the grocery store in order to purchase the water bottles. Even though there has been a push towards cleaner energy in recent years, it would be extremely difficulty to reduce the U.S dependency on oil given the amount of products it touches and its necessity in manufacturing process.


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