Norway's population is much smaller and less diverse, they are rich from North Sea oil, they don't send armies to far away places to interfere in other countries affairs, and they don't have 50 million on food stamps and 12 million fakers on SSI. Also they get married, then have children that they care for (even pack their lunches).
You may be surprised to learn that deep water drilling can bring oil to the surface for $35 per barrel. The Bakken shale oil costs $75 to get it to the top. Land drilling is expensive and unpredictable. Asian oil consumption is rising faster than western demand is decreasing.
We have to keep in mind that VNR is largely natural gas. They made a bet on natural gas by purchasing huge leases and interests in NG wells when NG was about $2.5 per million BTU. I have 13,000 shares of VNR that I bought low by putting ridiculously low limit buy orders. however I have sold some (still have 13,000) and purchased BBEP; more oil, although I am concerned about a glut of oil as demand in the US decreases and the Baken shale is now almost 1 million barrells per day.
I would definitely avoid Linn Energy because of the way they value their hedges. VNR is very conservative.
Today the energy MLP market is spooked because Linn publishes earnings after market close today.
These trusts usually have a finite life. They invest in the production of a fixed number of oil or NG wells plus future production from a specified undrilled production area. Does anyone know, or be able to estimate the life of this trust.
You are correct.
Who are the lemming, woosey sellers??
I'm more PO'd than worried. I have 7,000 shares; my purchase price is below $40
Bernanke funny money. Millions of government employees (not workers), School teachers, police and municipal workers;continue to get fat raises and huge benefits. Twelve million on Social Security disability, many millions getting fat SS deposits. Go to Vegas, watch them throw the money into the slots. I have relatives who are retired school teachers (so called;they're stupid). They don't save a dime; the pensions keep coming.
When the music stops and there are no chairs, only massive debt-then what!!!
Means "Unrelated business taxable income." I contacted VNR. for 2012 UBTI was negative, for 2011 it was slightly positive. I have held MLP's in my IRA for a decade and have never had a problem.
MLP's are almost exclusively limited to the energy industry because of the kind of investment required to develop and deliver energy. I own some non-public limited partnerships related to oil drilling.
Anyway, if VNR used some of it's vast cash reserve to purchase, say a casino or the Mustang Ranch and made a huge profit (if the economy improves)it would have to be reported as UBTI because it's unrelated to its core energy business.
My target is $70 by this time, 2015; earnings $7.00/share; dividend north of $5 per year