I would encourage all posters to adopt a longer term view. As we...

I would encourage all posters to adopt a longer term view. As we know, quality Aussie oil/gas co's have been absolutely smashed in the recent sell off. Whilst I would be very wary of buying co's with weak/average balance sheets or high production costs, there are numerous quality co's with robust balance sheets trading at very cheap prices to choose from - SXY, BPT, STO, WPL, CVN. These co's offer terrific value at present if you feel that oil is going to recover to USD 40+. Of course if you believe oil will remain below USD 25 long term then you wouldn't bother buying oil/gas stocks.

Once you have decided to invest, it is important to think longer term. Volatility is extreme at present and may continue for a while - another big sell off would not surprise me. It's pointless worrying about overnight oil price moves or why SXY has not gone up as much as the other Aussie oil/gas co's etc. It just creates stress for nothing. If you feel the shares are ridiculously cheap, buy them and be prepared to hold for some time, perhaps as long as 1 - 3 years. If your judgement is right and the oil price recovers, you will do very well. I'm a believer and I have recently invested heavily in my SMSF in these oil stocks. DYOR and GLTA