News of PetroChina being first to hit the $1 Trillion mark may seem ominous, but PetroChina has a parent company, China National Petroleum Corp, to hold the vast majority of it shares. Coupled with the facts that Chinese investors are a captive audience and can only invest in China’s state interests, it is much less of an achievement than first touted.
Also, ExxonMobilis constantly under assault by special interest groups who ignore PetroChina activities, activities such as China’s role in the Darfur catastrophe and drilling off of the Gulf Coast.
Berkshire Hathaway Inc, Harvard & Yale all divested themselves of PetroChina shares leading the way for others to follow their example.
Any way you look at it, $1 Trillion is a huge number! Larger than Exxon Mobile and GE combined. That said, the entire Chinese stock market seems to be in a bubble as well as oil and gas in general. Both may be coming down, just a matter of when. But look out, stocks come down faster than they go up. In my opinion, it would be a fairly safe play to short the Oil and Gas as well as Petro China (never a good idea with money you can not afford to loose).