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Big company, small town: Murphy Oil, El Dorado, Arkansas

This post is part of our Big Company, Small Town series, featuring large companies and the small towns in which they are headquartered.

If you like to save money on gas and live near a Wal-Mart in the Southeast and Midwest, chances are you are filling up these days at stations operated by Murphy Oil Corp. (NYSE: MUR), which is headquartered in the small town of El Dorado, Arkansas.

Those Murphy USA gas stations, located in parking lots of Wal-Mart Stores (NYSE: WMT), are just a small part of Murphy's many energy-related businesses. Murphy Oil is a giant, publicly-traded oil and natural gas exploration and production company with operations as far afield as Malaysia and Ecuador. Much of its U.S. drilling and refining is done off the shores of Louisiana, and some of that equipment was damaged during Hurricane Katrina. Sales in 2007 were more than $18 billion and the stock is up 60% in the past year. The company was recently ranked No. 134 in the Fortune 500 (to put that in perspective, Google is ranked 150 and Nike 153).

Corporate headquarters to all this (as well as a timber company that was spun off from Murphy in 1996), is El Dorado, population of 20,000. A boom town in the 1920s when oil was discovered, El Dorado has a colorful history and currently boasts summertime reenactments of a Wild West style gun fight on the courthouse steps, as well as a historic "haunted" theater. The town participated in the federal "Mainstreet" program, which provides grants for restoring historic downtowns, suggesting that the downtown was once in rough shape, but has since been prettied up.

Continue reading Big company, small town: Murphy Oil, El Dorado, Arkansas

The six reasons to own gold and silver

With gold turning down from its recent highs, some have questioned whether the 6-year bull market in metals may be ending. According to Mary Anne and Pamela Aden, the evidence points to the opposite conclusion. Indeed, they note, "Gold and silver have everything going for them and their rises have a lot further to go."

Here, the resource experts and co-editors of The Aden Forecast explain the six key factors they see that are pointing to higher metals prices.

The first two reasons are spending and money. They explain, "The world is swimming in money and that's the fuel that's been driving money assets and commodity prices up. But the magnitude of what's currently happening has never been seen before in world history."

The Adens points out that the U.S. is the world's largest debtor nation and "the government keeps spending money it doesn't have."

Since the government doesn't want to cut spending or raise taxes to reduce its debt, they note, "It simply produces money to cover its expenses, which is what governments throughout history have always done, and this amount is also huge."

In fact, in just over the past year, they observe, the amount of paper dollars that've been created is equal to half the value of all the gold that's ever been produced worldwide over the past 2,000 years, which is about $2 trillion. And it's not just the U.S. "Other countries are pumping out money like mad too. In Europe, for instance, money has been growing at the fastest rate in 17 years."

Continue reading The six reasons to own gold and silver

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Last updated: November 14, 2009: 10:42 AM

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