Book Review: Profit from the Peak

One of the threats from peak oil is the potential for financial ruin as oil prices run up. If you were invested in airline or automotive stocks through the recent run up in oil prices, you have probably seen those investments lose a lot of value. If, on the other hand, you were invested in oil futures, oil companies, or oil field service companies – you have probably seen those investments gain ground even as the overall stock market slumped. The idea of profiting from the peak – an event that is likely to cause misery for those who are least prepared – may seem an odd combination. It almost feels like “Profit from Homelessness.” But the reality is that unless you understand how energy prices affect the prospects of various sectors, you are placing yourself at a financial disadvantage.

Thus Profit from the Peak – the new book co-authored by my friend Chris Nelder – was destined to spark a lot of interest. Chris and I agree on most things energy-related, but we do also have some areas of sharp disagreement. In this review, I will explain what I liked about the book, but I will also detail my differences. Consider this a partial review, and a partial commentary on some of the particular topics in the book. However, my comments, and anything posted here at The Oil Drum, should not ever be construed as investment advice.

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