The oil spill in the Gulf of Mexico is a horrible disaster. Not only has the ecosystem been ruined by the BP oil spill, but businesses that rely on tourism, shipping, and a host of other industries is ruined as well. While there is a lot of heartache and grief over the disaster, there can be money to be made as well. Hate me if you want, but this portion of the oil spill is a business decision at the end of the day. You can make money through investments related to the Gulf of Mexico oil spill. It is not a pretty thought or a popular one, but it is true nonetheless.
Three ways to make a profit on the oil spill…
Buy Municipal Bonds. With the loss of tons of hotel and tourist revenue and the loss of subsequent taxes, there is a good chance that Gulf Coast states will begin to have trouble repaying or funding their municipal bond obligations. Like a lack of vacation home renters, there will be a shortage of municipal bond investors. And, thanks to our friends, the laws of supply and demand, cities and state governments will have to offer potential investors higher interest rates in order to attract new money. The need for new money for city and state budget funding will not end. So, there will continue to be investment opportunities in municipal bonds.
Stock In Companies. Many industries have been caught up in the disaster, and their stock prices have taken a beating. Eventually, you will be able to snatch up a few solid, blue chip companies that have weathered the storm. Many of these depressed stock prices will come back to normal levels, if and when, they are cleared of any financial liability from the Deepwater Horizon oil spill. Other companies that clean up disasters and oil spill can also see a shot in the arm as their services and subsequent revenues increase. The environmental services firm, Clean Harbors, sent approximately 300 employees to help in the spill’s cleanup. Nalco Holding is also another company who may benefit from the spill. Nalco Holding makes a dispersant that breaks up the oil in the water before it reaches land. The same is true of products made by Dow Chemical as well.
Buy Land On Gulf. The price of real estate on the Gulf Coast has continued to be hit hard. As if home and land prices were not depressed enough thanks to the housing crisis and recession, now homeowners near the Gulf of Mexico have another problem to deal with. Subsequently, there will be very good real estate deals in the area for the long term and patient investor. Now might be a good time to purchase the vacation home that you have been considering for a long time. While it may not be a short term profitable plan, the money saved on the purchase price today could pay dividends decades from now.
So, what do you do with your new found financial windfall from the BP oil spill? That is a decision that you must make yourself. If you are having trouble coming to grips on earning a profit on other people’s misfortune, there are several ways to give back some or all of your profits to charities helping out in that region.
You can give money to…. American Bird Conservancy, Defenders of Wildlife, Ducks Unlimited
EarthShare, Environmental Defense Fund, Friends of the Earth, Greenpeace Fund, International Fund for Animal Welfare, National Audubon Society, National Wildlife Federation, Natural Resources Defense Council, Nature Conservancy, and Oceana
According to the Better Business Bureau, these national charities describe activities that address the oil spill. Check out those charities websites for details of how they are helping in the Gulf of Mexico and surrounding areas. This list only includes charities that meet the Better Business Bureau’s Wise Giving Alliance’s Standards for Charity Accountability.