Oil is good long-term buy, says Jim Rogers

BusinessIntelligence-ME reports:

Legendary global investor and chairman of Singapore-based Rogers Holdings, Jim Rogers said oil is a good long-term buy because drilling opportunities are dwindling as the Obama administration mulls banning offshore operations after a BP well ruptured on April 20, causing the biggest oil spill in US history.

Speaking in a CNBC interview from Madrid on Wednesday, Rogers said. "I guess if anything you would buy oil because… drilling has been cut back. No drilling, no oil – higher prices," he said.

"The IEA is going around the world pleading with governments to understand that oil is running out.

Where is the oil? Tell us, so we can buy it," he said when asked about opinions by other analysts that there are plenty of oil reserves.

Alternative energy resources will be developed and new drilling permits will be issued when the price of oil will go higher, he said.

"At US$200 (per barrel of oil) they'll be drilling for oil at Buckingham palace," Rogers said.

The laws of supply and demand.