Oil Boom Profits

If you can't beat 'em, join 'em. Oil prices are back above $70 a barrel, and many people are looking to invest in energy company stocks. But, is it a good idea? Some say investing in oil is the answer to dealing with high gas prices, but others say be careful. Just because we're all paying a lot at the pump doesn't necessarily mean you're going to get a good return when you in invest in oil.

Gas prices hurt., and many people want a piece of the oil companies pie. But, is it wise? "I just think the idea of staying diversified and having some money there in some oil and may be some gas stocks, but not getting overboard and putting a dis-proportionally large amount in something like that", said Dave Becker-Edward Jones. Becker, a certified financial planner, says oil stocks work in cycles. "You see these things come and go and I'm not going to say oil prices are going to get back to where they were 10 years ago, but I think at some point in time somewhere down the road they are going to drop, the question is how much, and when are they going to drop", said Becker.

A recent report shows oil companies make 8.3 cents in profit on the dollar. Chevron, Conoco Phillips, and Exxon Mobil have recorded more than $15 billion in profits since the beginning of the year. All tempting to investors. "To still kind of have your foot in that pond, but not jump in completely because by the time you get there, it might be dried up", said Becker