Global Oil Funds

Summary

In the article Global oil funds get more bang for bucks-in Health Care, Javier David explains how crude prices are in the midst of a slump.  The oil industry is a very large industry in our economy and they are making a lot of money, but how can they deal with this slump?  For example, oil prices have shed more than 50% of their value in the last year making it very difficult for these mega funds to cope.  The large companies have lots of money to spend, and with this slump, the companies are starting to realize what they need to invest their money in.  The main idea of the article is that large oil companies can't deal with the slump on their own, and are now starting to invest their money into other things such as health care, or even technology because those industries are growing rapidly.  The slump is causing companies to be less reliant on crude revenues and to start becoming dependant upon healthcare and technology.

Response

I agree with the author in the sense that these huge industries are starting to realize the slump, and have to come up with a way to deal with it.  They have plenty of money, as crude plays a vital role in our society, and therefore it is up to them what they want to invest their money in.  Yes, the healthcare and technology markets are always growing but that doesn't restrict the crude companies from investing their money that they have earned in that.  Health care is a major market and theres lots of money to be invested and even made with in it.  All in all, these companies should be able to decide what they want to invest their money in no matter what, and no ones going to be there to hold them back.  

Questions

Should healthcare companies care that oil based companies are starting to invest in their market?

Who would hold the oil companies back?

Why wouldn't oil companies be able to spend their invested money on whatever they want?

A Gas flare seen at an oil well site outside Williston, N.D.