non renewable resource

Unlike the $US oil is non renewable and the world uses 84 million barrels a day. All the oil in the world will one day be gone.

The current downturn is cutting demand for oil from the edges. I cannot imagine any large scale demand destruction even with the car industry tanking. My cousin who owns a brake pads company is doing well through the downturn because people are using their old cars longer. The high oil prices last year might have people thinking about holding out until electrical and hybrid models become more easily available. But this process has a long time to run and it has barely even begun. Maybe at least five years until I (an above average wage earning citizen in a wealthy nation) could think about buying one. Anyhow I have to try squeeze five years out of my 15 year old car, just replaced the distributor, can't get rid of it yet!

CVN and POE would do well to keep production low and focus on exploration this year. No point pumping out too much of the precious stuff while the price is so low. And I'll just have to become a long term holder perhaps selling off in the next big upwards POO euphoria.

And thats why I think CVN is a good defensive stock. Won't get much lower and plenty of upside in future.