- The risk premium in oil has expanded to unsustainable levels. The current conflicts will end and when they do oil will drop.
- I believe oil prices are at the tipping point where we could begin seeing significant demand destruction. Even if the Middle East conflict is prolonged, people and businesses will cut back and lower demand will result in lower prices.
- Many big name energy stocks are overbought and do not provide the best value in the market.

**EOG Resources, Inc.,**

**(NYSE:EOG)**shares are trading at $118.19. The RSI is about 67, which is around overbought levels. EOG is an independent oil and gas company based in Texas. These shares have traded in a range between $85.42 to $121.44 in the past 52 weeks. The 50 day moving average is $108.96, and the 200 day moving average is $98.71. Since EOG shares are currently trading well over the 50 and 200 day moving averages, and close to the 52 week high, they could be due for a drop. Earnings estimates for EOG are just $3.42 per share in 2011, so the PE ratio is over 30. These shares appear ripe for a correction and the stock was downgraded recently by Ticonderoga which you can see here. EOG pays a small dividend of only 64 cents per share which gives a yield of .5%.

**Schlumberger**

**(NYSE:SLB)**is trading at $92.97 today. SLB is one of the leading oil equipment and service companies. These shares have traded in a range between $51.67 to $95.64 in the past 52 weeks. The 50 day moving average is $89.80 and the 200 day moving average is $72.92. Since SLB shares are currently trading well over the 50 and 200 day moving averages, and close to the 52 week high, they could be due for a correction. Earnings estimates for SLB are just $3.84 per share in 2011, so the PE ratio is over 23. The book value is about $22.94. These shares appear overvalued. SLB pays a small dividend of $1 per share which gives a yield of 1.1%.

**Cameron International (NYSE:CAM)**is trading at $57.07 today. CAM is one of the leading oil equipment and service companies. These shares have traded in a range between $31.42 to $63.16 in the past 52 weeks. The 50 day moving average is $57.90 and the 200 day moving average is $46.55. Earnings estimates for CAM are just $2.76 per share in 2011, so the PE ratio is over 20. The book value is about $18.01. CAM does not pay a dividend. With a PE ratio of over 20, shares near the high end of the trading range and no dividend, I just don't see any reason to hold or buy these shares now.

**Halliburton (NYSE:HAL)**is trading at $49.69 today. HAL is one of the leading oil equipment and service companies. The shares have traded in a range between $21.10 to $50.74 in the past 52 weeks. The 50 day moving average is $45.99 and the 200 day moving average is $36.46. These shares are currently trading well over the 50 and 200 day moving averages, and close to the 52 week highs. Earnings estimates for HAL are at $2.88 per share in 2011, so the PE ratio is about 20. The book value is about $11.40. HAL pays a small dividend of 36 cents per share which gives a yield of .7%. With a PE ratio of nearly 20, shares near the high end of the trading range and only a small dividend, I just don't see much value here.

**Anadarko Petroleum (NYSE:APC)** is trading at $82.82 today. APC is one of the leading oil and gas companies, and is based in Texas. The shares have traded in a range between $34.54 to $84 in the past 52 weeks. The 50 day moving average is $79.25 and the 200 day moving average is $63.48. Since the shares are currently trading well over the 50 and 200 day moving averages, and close to the 52 week high, they could be due for a correction. Earnings estimates for APC are at $2.57 per share in 2011, so the PE ratio is about 32. The book value is about $41.70. APC pays a small dividend of 36 cents per share which gives a yield of .4%. With a PE ratio of about 32, shares near the high end of the trading range and only a small dividend, I just don't see much value left. The time to buy these shares was when they were trading for less than $40 per share, so now is a great time for taking profits.

**National Oilwell Varco (NYSE:NOV)** is trading at $81 today. NOV is an independent oil and gas company based in Texas. These shares have traded in a range between $32.18 to $82.80 in the past 52 weeks. The 50 day moving average is $77.84 and the 200 day moving average is $56.45. Since NOV shares are currently trading well over the 50 and 200 day moving averages, and close to the 52 week high, they could be due for a correction. Earnings estimates for NOV are at $4.15 per share in 2011, so the PE ratio is about 20. The book value is about $37.30. NOV pays a small dividend of 44 cents per share which gives a yield of .5%. While this company is not as overvalued as some of the other names here, it is still a case where the easy money has probably been made.

**Range Resources (NYSE:RRC)** is trading at $58.79 today. RRC is a oil and gas company, based in Texas. These shares have traded in a range between $32.25 to $59.43 in the past 52 weeks. The 50 day moving average is $51.27 and the 200 day moving average is $42.75. Since RRC shares are currently trading well over the 50 and 200 day moving averages, and close to the 52 week high, they could be due for a correction. Earnings estimates for RRC are just $1.01 per share in 2011, so the PE ratio is over 50. The book value is about $13.06. These shares appear extremely overvalued on every metric. RRC pays a small dividend of 16 cents per share which gives a yield of only .3%. These shares looked priced beyond perfection and I would sell, sell, sell ...

*The data is sourced from Yahoo Finance and Stockcharts.com. The information and data is believed to be accurate, but no guarantees or representations are made. Rougemont is not a registered investment advisor and does not provide specific investment advice. This information is solely educational in nature and not intended to serve as the basis for any investment decision.*

**Disclosure: **I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.