We recommend investments in natural gas producers, oil producers and oil refiners for attractive returns for the rest of the 2000s and beyond. Crude oil price is in a multi-year upswing that may carry the widely quoted Light, Sweet grade to $150 a barrel in 2010. Global demand is strong and there is practically no more spare producing capacity to restrain price. Because no one can be sure of the future oil price, we have added confidence in natural gas that is trading at nearly a third discount to oil in the futures market.
Price controls in some large markets, Russia and China for example, that restrict natural gas price to perhaps a sixth of the oil equivalent can only be temporary. Widespread and growing burning of coal is a built-in source of potential demand for displacement by cleaner natural gas and refined oil products as the world demands a healthier environment. Buy-recommendations to implement the strategy include Gazprom (OGZPF.PK), Canadian Oil Sands Trust (OTCQX:COSWF), Devon Energy (NYSE:DVN) and ConocoPhillips (NYSE:COP).
Kurt Wulff's McDep Associates offers realtime, independent research services for investors in the energy and utilities sectors. For more information, go to www.mcdep.com or email Mr. Wulff at email@example.com.