Thursday, May 8, 2008

Long Term Trends: Part 1: Energy, Oil, Coal, Nuclear, Cleanup

Forever Portfolio Series

James Altucher, of and, is writing a book: The Forever Portfolio: How to Pick Stocks That You Can Hold for the Long Run.

James Altucher hopes to show investors how to build a strong, consistent long-term portfolio, diversified enough to withstand the various cycles of the market.

Inspired by this, we will be starting a series over a period of time highlighting some long term trends. Some of the trends may be working right now, but some of them may start several years from now but last a long time.


Energy is a long term trend. Oil price is zooming. Demand will be increasing over the long term as countries all around the world, especially those countries in the emerging markets (such as China and India) demand more energy and oil.

Supply will remain limited, and rising energy prices (or consistently expensive energy prices) will remain a long term trend.

Integrated Oil Companies

Some integrated Oil Companies to look at:
  1. Exxon Mobil (XOM)
  2. Conoco Philips (COP)
  3. CNOOC (CEO), Chinese Oil Company
  4. Petro China (PTR), Chinese Oil Company
  5. Petrobras Energia (PZE), South American Oil Company
  6. Lukoil (LUKOY.PK), Russian Oil Company

Oil Services and Exploration

Oil companies need help searching for new oil, drilling, extracting oil from oil sands, and all other forms of help. Some of these oil services companies could benefit.
  1. Schlumberger (SLB)
  2. Halliburton (HAL)
  3. Transocean (RIG)
  4. National Oilwell Varco (NOV)
  5. Nabors (NBR)
  6. Ensco International (ESV)
  7. Petroleo Brasileiro (PBR)

Canadian Oil Sands and Other Energy

Canada has the Largest Crude Oil Reserve, but much of it is in Canadian Oil Sands, which can be difficult to extract, but becomes profitable as energy prices remain high.
  1. Suncor (SU)
  2. Canadian Natural Resources (CNQ)

Natural Gas

As oil zooms higher, other forms of energy resources are needed and this incldues Natural Gas.
  1. Chesapeake Energy (CHK)
  2. Canadian Natural Resources (CNQ)
  3. Andarko Petroleum (APC)
  4. Encana (ECA)
  5. Devon (DVN)
  6. Apache (APA)

Oil and Gas Pipelines

Gas and Oil needs to transported.
  1. Williams Co (WMB)
  2. Spectra Energy (SE)
  3. Enbridge (ENB)
  4. Kinder Morgan Energy (KMP)
  5. El Paso Coroporation (EP)


Oil needs to be refined.
  1. Valero (VLO)
  2. Marathon Oil (MRO)
  3. Sunoco (SUN)

Oil Shipping

Oil needs to be shipped all around the world.
  1. Frontline Ltd (FRO)
  2. Nordic American Tanker Shipping (NAT)
  3. Overseas Shipholding Group (OSG)
  4. Teekay (TK)


Coal is one of the most inexpensive forms of fossil fuel. Some people complain about the environmental implications. There are new technologies out there.
  1. Peabody Energy (BTU)

Coal Services

  1. Bucyrus (BUCY)
  2. Joy Global (JOYG)

Railroads for Coal

Railroads are needed to transport energy products such as coal:
  1. Union Pacific Railroad (UP)
  2. CSX Transportation (CSXT)
  3. Norfolk Southern Railway (NS)


Nuclear can provide a lot of energy for very long time, but detractors do not like the environmental implications.
  1. Cameco (CCJ)

Environmental Cleanup including Nuclear

With all these byproducts, the environment needs to be cleaned up.
  1. American Ecology (ECOL)
  2. Clean Harbors (CLHB)
  3. Energy Solutions (ES)

Alternative Energy

Alternative Energy is still a very speculative area, but if you wish to research, you may. Alternative energy includes ethanol, bio-fuels, solar, wind, and even wave power. As of this moment, more funding will be put in alternative energies in a world where energy prices are zooming too high. Students and researchers will be researching new and more profitable ways to provide energy.
  1. First Solar (FSLR), A Solar company
  2. Any Agriculture Company
  3. Energy Conversion Devices (ENER)
  4. Imperial Sugar (IPSU), another source of ethanol
  5. Toyota Motors (TM), a leading hybrid engine car company

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