The energy markets are in a state of flux at the moment. Oil, gas, wind, geothermal and solar are all thought to be ways to invest in energy. Past oil and natural gas not going away anytime soon, no realistic forecast can indicate what the next mainstream power source will be. With this in mind, one can point to a certainty as it relates to investing. If a company has survived a boom and bust cycle for a sustained period, it will likely remain and be stable as additional booms and busts occur, regardless of the sector.
Pyramid Oil Company, an oil and natural gas exploration and development company, works to locate, develop and exploit oil and natural gas reserves primarily in California. It also maintains sites in Wyoming, New York and Texas. This year the company is celebrating 100 years of continuous operations.
The fact that Pyramid Oil has been in continuous operation for 100 years can be a testament to the stability and consistency of the company. The ability to remain operational over such a long-term peroid is a solid indicator of the company’s ability to make profit in its chosen markets. In this regard, the company’s $1.5 million net income from $6.6 million in sales shows how this company operates. It is not a flashy operator but rather a consistent and stable operator that plans to be in operation for another 100 years.
Pyramid Oil is not blind (as it were); it has begun to move into areas where new profit centers will likely be going forward. Natural gas is one such area and one the company has taken notice of. Its 5,700 acre joint-venture in southern Texas is an example of this foresight. Natural gas is a leading choice for future power generation and a must have for any energy producer intending on being in operation for another 100 years. Pyramid Oil Company is by no means a sexy investment but rather a reliable one. In these days of moving oil and gas commodity prices, along with uncertain politics around the world and within the US, this oil and gas play appears to be a stable and relatively safe way to be in the energy move that is likely on its way.