Special Report: Oil & Gas

01/30/2004 12:00 am EST


Cold weather. Tight supplies. Reduced production. Rising demand. Global growth. Supply disruptions.  Geopolitics. Currencies, commodities, inflation. These are among the many factors discussed as the top advisors in this special issue offer their favorites in the oil and gas sector.

This is the first time in the year-and-a-half that we have been publishing the Money Show Digest that we've seen such a preponderance of recommendations for the oil and gas industry--enough to warrant this special report. Some might say this broad consensus should be viewed as a contrary indicator-suggesting that the market should move counter to what is expected by so many. While I strongly agree with the general notion of contrary investing, I'd emphasize that the advisors included under our coverage--The Money Show speakers--are truly the best of the best, and do not represent the type of consensus that you'd want to bet against. (Our previous two special reports were devoted to gold, and in both cases the consensus call for higher prices proved accurate.)

We are now seeing a wide array of advisors recommending positions in the energy sector. We emphasize that this focus on oil is not meant to the exclusion of other investments. For the most part, oil and gas issues are being recommended as part of an otherwise balanced portfolio. Like gold, many view the oil sector as defensive, and as a hedge against uncertainty, geopolitical risk, and a potential rise in inflation. Many simply point to energy as a way to participate in global growth and the continuing boom in overall commodity prices. And there is no doubt that continued record cold weather in North America is adding fuel to the energy fire.

Of particular interest is the diversity of reasoning behind their bullishness, and the wide range of sub-sectors that are attracting their attention. From oil to natural gas, from wildcatters to big integrated firms, from exploration and production to distribution, from oil drilling services to tanker transportation, and from individual stocks to exchange traded funds, our advisors see opportunities along the entire spectrum of energy investing. We hope you enjoy this special report, and we hope to see you next week at The World Money Show, February 2-5, in Orlando!

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