Investing in Charlottes Web CBD Oil and Getting Even With the Current Economic Situation
In the mid 1990’s, American Petroleum Institute (API) head Lee Brown created a small company in Charlottes Web, Virginia called Charlottes Web CBD Oil. API was a major player in establishing the North American Petrodiesel Industry and had many partners to work with including Sunoco, Enron and Tesoro. They tried to get their product to market by starting an oil futures brokerage in Texas under the name “Web Trading”. The idea was to use the financial markets to create a profit for API by taking advantage of the volatility of oil prices. The idea never caught on.
After this failure, API turned its attention back to refining oil and began acquiring smaller companies around the country who wanted to outsource some of their crude oil requirements. The idea was to use the money made from the transaction to finance the research and development of new projects. One of the projects was to develop a new technology for combining diesel and bio-diesel, which would eliminate the need to mix the two oils. This is the subject of our next article.
API also bought into several companies that were looking to cash in on the North American Automobile Industry (NAAI). API was well aware that they were in competition with a number of companies that were looking to “disrupt” the crude oil market. Among those that became competitors were Enron and Dresser-Krueger, both of whom were backed by big oil firms. Over the past decade, the “shale revolution” has led to a major increase in crude oil production and lower prices. API’s shares have dropped over forty percent since the beginning of the shale boom and they are now worth less than the cost of production. Many of the large investors in API are now either bust or on the verge of going under.
Some of the “disrupters” that API has left behind in North America include Continental Resources, Enterprise, FMC Technologies and Silver Star Energy. None of these companies are likely to be seeking bankruptcy as their stocks have tumbled over forty percent over the last three months. One company that is taking advantage of the low price of oil is Encana. While it will be interesting to see what happens with this company, it does appear that API is not done investing in the oil industry and is still holding onto some of its stocks.
It appears that API may have put their money into a number of companies in the last year that are currently experiencing great financial trouble. Among those who were taken over by API was Black Eagle Energy, royalties Limited and White Horse Energy who all had to liquidate their stock within the past year. As one of the largest independent producers of Canadian crude oil, it is expected that API will once again focus on finding new markets for its products.
At this point in time, only you and a few other investors will be able to save your investment on the current downward trend of oil prices. If you are an active trader, you may want to continue to hold on until the bubble burst and oil prices return to more normal levels. There is certainly no guarantee that the price of oil will return to more normal levels anytime in the near future, so your best bet is to keep your cash in a safe place until prices return to a more acceptable level. At the very least, it would be better than losing all of your investment. In today’s economy, however, it appears that holding on is the best thing to do.