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Brent crude skidded to $109 on Tuesday as stakeholders took profits once prices elevated over two dollars from the previous session. Concerns over macroeconomic issues eclipsed apprehensions regarding supply disruptions from Iran’s latest saber rattling Strait of Hormuz bona fide sham. According to a recent report from Reuters Africa:

Jitters over Iran and threats to key shipping lanes made oil post its biggest gain in a month on Tuesday, in sharp contrast to a fall in most other financial markets. Oil investors are turning their attention on the global growth outlook after the Federal Reserve warned that the turmoil in Europe poses a risk to the U.S. economy. Brent crude slipped 48 cents to $109.02 a barrel by 0233 GMT, after posting the biggest one-day rise since Nov. 28 to settle $2.24 higher. U.S. crude slipped 34 cents to $99.80, after jumping 2.4 percent, the biggest since Nov. 16.

Tetsu Emori, a fund manager with Astramax Co. in Tokyo said:

"There is some profit-taking we are seeing today after oil surged so high yesterday. Participants are now focusing back on the European crisis, and that is prompting a broad fall across commodities."

Crude futures briefly surged nearly $4 a barrel after markets opened in New York in the previous session in a furious burst of trading. Other commodities did not jump, and traders remained unable to pinpoint a specific trigger for the surge.

Current Oil & Gas Market Highlights

Oil prices surged Tuesday posting the largest increase in weeks on Iran’s Strait of Hormuz Folly. Monday a member of the Iranian parliament said the military was set to practice shutting the Strait of Hormuz, the world's most important oil shipping route, which may have been the spark igniting the spike. Nevertheless, prices dropped as economic despairs dwarfed supply interruption fears. Adding to the pullback in prices was a report stating that U.S. oil stocks rose 462,000 barrels.

An upcoming meeting today in Vienna of the cantankerous collection of OPEC cranks may bring total chaos to world oil markets. The last OPEC meeting was truly historic in nature. For the first time in the life of the OPEC Cartel or “Organization” there was no agreement between OPEC members. As Ali al-Naimi, oil minister for Saudi Arabia, OPEC's biggest producer, stated just after the dysfunctional group broke this past June, "We were unable to reach an agreement. This is one of the worst meetings we have ever had." Now, with the latest shenanigans being pulled by Iran, what are the odds we will hear good news from the meeting? I’m saying slim to none.

Peak Oil Theory Remains Intact Regardless of Fluctuations

Each of the following stocks has outperformed the S&P Index over the last 52 week period. They are all energy related. With the current tumultuous events in the Middle East bringing attention to the mounting energy requirements of the emerging economies, in addition to the burgeoning necessities of the recovering developed economies, the fact that demand is outstripping supply appears to be blatantly obvious. All the easy oil and gas has been discovered, recovered, depleted and expended. We are now left with on shore ‘fracking’ and deep sea drilling which are much more expense endeavors ultimately driving the price of a barrel of oil sky-high sooner rather than later.

There is no disputing this scenario. The emerging markets of the globe haven’t even begun to demand their fair share. Think of this fact, even with the sad state of the current global economy, we are at $100 a barrel oil! What do you think is going to occur when the economies of the world begin to recover and emerging markets gain viable traction? You can kiss $100 a barrel oil goodbye forever. The following are seven energy plays for 2012 that are well positioned to take advance of the coming oil shortage.

Seven Oil Plays For 2012

The following are seven energy plays for 2012: BP plc (NYSE:BP), CONSOL Energy Inc. (NYSE:CNX), Chevron Corporation (NYSE:CVX), Clayton Williams Energy Inc. (NYSE:CWEI), Devon Energy Corporation (NYSE:DVN), Hess Corporation (NYSE:HES) and Linn Energy, LLC (NASDAQ:LINE).

Compelling Fundamental Characteristics

These energy related stocks have great fundamentals and positive facilitators for future growth. However, many are trading at substantial values due to incessant negative macroeconomic headlines and a lack of confidence from Main Street based on the ever-present deleterious employment picture. Moreover, most of these stocks are trading well below consensus analysts' estimates, have recent upgrades and positive analyst comments.

Current Performance Chart

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Company Descriptions and Fundamental Statistics

BP plc provides fuel for transportation, energy for heat and light, retail services, and petrochemicals products. Its Exploration and Production segment engages in oil and natural gas exploration, field development, and production; midstream transportation, and storage and processing; and marketing and trading of natural gas, including liquefied natural gas (LNG), and power and natural gas liquids (NGL).

Fundamental Statistics

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CONSOL Energy Inc. engages in the production of multi-fuel energy and provision of energy services primarily to the electric power generation industry in the United States.

Fundamental Statistics

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Chevron Corporation, through its subsidiaries, engages in petroleum, chemicals, mining, power generation, and energy operations worldwide. It operates in two segments, Upstream and Downstream.

Fundamental Statistics

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Clayton Williams Energy, Inc., an independent oil and gas company, engages in the exploration for and production of oil and natural gas primarily in Texas, Louisiana, and New Mexico.

Fundamental Statistics

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Devon Energy Corporation, together with its subsidiaries, engages in the acquisition, exploration, development, and production of natural gas and oil in the United States and Canada.

Fundamental Statistics

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Hess Corporation and its subsidiaries operate as an integrated energy company. It operates in two segments, Exploration and Production (E&P) and Marketing and Refining (M&R).

Fundamental Statistics

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Linn Energy, LLC, an independent oil and natural gas company, engages in the development and acquisition of oil and gas properties in the United States.

Fundamental Statistics

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Conclusion

Based on these facts, the future of companies in the energy industry seems brighter than ever. We all know that past performance is not a surefire indicator of future success. On the other hand, with the finite nature of oil resources and the seeming tipping point of the oil supply/demand equation coming to fruition sooner rather than later, the continued success of these companies appears certain. Use this information as a starting point for your own due diligence and research methods before determining whether or not to buy or sell a security.

Source: The Time Is Now To Jump On These Energy Buying Opportunities