Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Master Limited Partnerships
Old 09-12-2017, 10:24 AM   #1
Dryer sheet wannabe
 
Join Date: Feb 2017
Posts: 12
Master Limited Partnerships

I have a few of these partnerships that total about 7% of my assets. I'm 46 years old. I bought these as very long term holdings. However, since I purchased them, a lot has changed. EV is now moving much faster than I think many analysts realize or are reporting.

My largest MLP holding, BPL, is a petroleum storage and transport firm. I'm considering selling it to focus on natural gas infrastructure.

Am I selling too early? Do we have many decades (3 or 4) until petroleum sees a substantial demand reduction? Or will it come much faster - within the next 10-15 years?

I use the MLP's for income purposes. If the transition comes much faster, I'm concerned about a permanent capital impairment in addition to loss of income.
__________________

__________________
jjim6954 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 09-12-2017, 12:15 PM   #2
Full time employment: Posting here.
OldShooter's Avatar
 
Join Date: Mar 2017
Location: City
Posts: 836
Quote:
Originally Posted by jjim6954 View Post
... Am I selling too early? Do we have many decades (3 or 4) until petroleum sees a substantial demand reduction? Or will it come much faster - within the next 10-15 years? ...
You are hardly unique in asking these questions. The most likely situation is that the consensus answers are already incorporated in the market price. Hence, the future price will be affected only by unknown future events and a buy or a sell decision is pretty much a roll of the dice.

This is a highly condensed argument for the efficient market hypothesis. Over the long term it is IMO hard to refute. Over the short term, behavioral finance effects occur. I'm sure that someone will be along soon to argue that case.
__________________

__________________
OldShooter is offline   Reply With Quote
Old 09-12-2017, 02:56 PM   #3
Thinks s/he gets paid by the post
 
Join Date: Apr 2011
Posts: 1,493
Quote:
Originally Posted by jjim6954 View Post

My largest MLP holding, BPL, is a petroleum storage and transport firm. I'm considering selling it to focus on natural gas infrastructure.
There are many NG MLP's.
__________________
gerntz is offline   Reply With Quote
Old 09-12-2017, 03:00 PM   #4
Thinks s/he gets paid by the post
 
Join Date: Mar 2017
Location: New York City
Posts: 2,838
Im involved with a Master Limited Partnership for over 30 years. My wife is the Master, im the limited partner. It works well for us, the default answer is "Yes Dear". It works well.
__________________
Withdrawal Rate currently zero, Pension 137 % of our spending, Wasted 5 years of my prime working extra for a safe withdrawal rate. I can live like a King for a year, or a Prince for the rest of my life. I will stay on topic, I will stay on topic, I will stay on topic
Blue Collar Guy is offline   Reply With Quote
Old 09-12-2017, 03:07 PM   #5
Recycles dryer sheets
Luck_Club's Avatar
 
Join Date: Dec 2016
Posts: 321
EV=Electric Vehicle Migration?

Not likely to happen long term.

I've spent many years on the R&D side of all sorts of technology. When it comes to green energy Electric vehicle thing, I've worked with multiple companies developing photo voltaic cells (solar panels), wind turbines, hydrogen fuel cells, inverter & of course battery technology. Pull the "TAX Credits" and they all go away like a fart in the wind.

That's just my opinion.
__________________
Luck_Club is offline   Reply With Quote
Old 09-12-2017, 04:07 PM   #6
Recycles dryer sheets
 
Join Date: Jun 2017
Location: Western NC
Posts: 217
Electrification is the future of transport.

The electricity...from natural gas of course.

But driven less from cost concerns & more from pollution concerns, especially for urban areas.
__________________
ncbill is offline   Reply With Quote
Old 09-12-2017, 04:21 PM   #7
Recycles dryer sheets
Luck_Club's Avatar
 
Join Date: Dec 2016
Posts: 321
Quote:
Originally Posted by ncbill View Post
Electrification is the future of transport.

The electricity...from natural gas of course.

But driven less from cost concerns & more from pollution concerns, especially for urban areas.


E=mc2
__________________
Luck_Club is offline   Reply With Quote
Old 09-12-2017, 05:35 PM   #8
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
haha's Avatar
 
Join Date: Apr 2003
Location: Hooverville
Posts: 22,357
Quote:
Originally Posted by Luck_Club View Post


E=mc2
Remains a hard sell. Might be stupid, & IMO it is, but the public rules and no one ever said that the public was particularly smart.

Ha
__________________
"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
haha is offline   Reply With Quote
Old 09-13-2017, 01:17 PM   #9
Recycles dryer sheets
 
Join Date: Jun 2017
Location: Western NC
Posts: 217
Quote:
Originally Posted by Luck_Club View Post


E=mc2
Ummm...what?

Referring to nuclear?

Sorry, it's proved too expensive vs. fossil fuels.
__________________
ncbill is offline   Reply With Quote
Old 09-14-2017, 10:58 AM   #10
Thinks s/he gets paid by the post
Sunset's Avatar
 
Join Date: Jul 2014
Location: Chicago
Posts: 4,574
Quote:
Originally Posted by ncbill View Post
Electrification is the future of transport.

The electricity...from natural gas of course.

But driven less from cost concerns & more from pollution concerns, especially for urban areas.
Once they get the range up to 1,000 miles and charging stations a common as gas stations it will be something I'll buy.

One other issue, more of a national one is wiping out a part of the grid, means people are stranded.
__________________
Sunset is offline   Reply With Quote
Old 09-14-2017, 12:02 PM   #11
Recycles dryer sheets
 
Join Date: Jun 2017
Location: Western NC
Posts: 217
Quote:
Originally Posted by Sunset View Post
Once they get the range up to 1,000 miles and charging stations a common as gas stations it will be something I'll buy.

One other issue, more of a national one is wiping out a part of the grid, means people are stranded.
It's a lot easier to get stranded when depending on only one fuel, which is why my next new vehicle will be a PHEV.

If the recent gulf coast hurricane had made landfall just a little further east then here we would have had a repeat of several years ago when we didn't have reliable gasoline supplies for a couple of weeks, even while shipping in as much fuel from the coast as possible. In the largest city in our state some stations were selling only to public services.

But it's now clear emissions will drive change more than economics. Already here in the U.S. the largest cities have or are in the process of switching public busses to natural gas instead of diesel.

Europe, which has traditionally favored efficiency (diesel engines with minimal pollution controls) over emissions has reversed course and urban centers will heavily restrict or outright ban personal ICE vehicles soon enough.

So, I'd favor investing in gas (cleaner emissions) projects over oil.

Here in the U.S., for better or for worse, we've bet the farm on natural gas.

For power generation, for manufacturing, for home heating, etc.
__________________
ncbill is offline   Reply With Quote
Old 09-14-2017, 01:25 PM   #12
Thinks s/he gets paid by the post
 
Join Date: Mar 2017
Location: New York City
Posts: 2,838
Quote:
Originally Posted by ncbill View Post
It's a lot easier to get stranded when depending on only one fuel, which is why my next new vehicle will be a PHEV.

.
I once saw when i was in the army a refrigerator that used either electric or battery and I even think some other kind of fuel. We were in the field so electric was out, no generators were running, I even think he said it could be run on diesel. It been more than 35 years and the memory is going...


Any of you old OG-107 olive drab green soldiers remember this?
__________________
Withdrawal Rate currently zero, Pension 137 % of our spending, Wasted 5 years of my prime working extra for a safe withdrawal rate. I can live like a King for a year, or a Prince for the rest of my life. I will stay on topic, I will stay on topic, I will stay on topic
Blue Collar Guy is offline   Reply With Quote
Old 09-14-2017, 08:40 PM   #13
Recycles dryer sheets
 
Join Date: Jun 2017
Posts: 110
Even if new production changes to electric tomorrow we still got all those bogle heads who want to drive the car they they own for another 15 years.

I think production will decline and gas isn't near as profitable compared to oil. Harder to store as well. I wouldn't study to be in oil industry right now if I needed a long career. It won't crash but slow reduction in need will just keep increasing the competition for limited spots. Major deep water projects are a 30 year investment. Onshore is much shorter time frame.

It's complex to say how things will go. Sure to say there will be a long taper but don't know if it has already started or not and don't know when it will end. If we committed we could make all renewable energy but that's way more effort (cost) than using oil.
__________________

__________________
pj.mask is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Master Limited Partnerships lawman FIRE and Money 12 08-26-2008 06:12 PM
Limited liability partnerships Meadbh FIRE and Money 17 12-01-2007 04:10 PM
Energy Master Limited Partnerships or MLP Funds? Searcher7 FIRE and Money 11 09-14-2005 02:39 PM

 

 
All times are GMT -6. The time now is 03:16 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.