Duke Energy, one of the best known utility companies in the nation, has announced plans to separate its business into two parts: the mainly regulated utility operations as Duke Energy and its midstream gas business to be called Spectra. Under current plans, every DUK shareholder will receive one share of Spectra for every two shares of Duke owned. This could play out as a very profitable move for both Duke and its shareholders. Read More

A wrapup of 2005 which examines the performance of The Energy Strategist's key investment themes as well as some of the individual recommendations. Read More

Coal miners can be very profitable if you are selective in your investments. Some are facing increased operational costs as the level of complexity rises with their aging mines and their skilled employees begin retiring. However, those operations that are able to utilize strip-mining techniques, especially in the Powder River Basin (PRB), are relatively low cost and profitable. Also, having to transport the coal from the PRB creates profitable plays in the railroads. Read More

Back in 1965, Saudi Arabia produced less than 2.3 million barrels of crude oil per day, roughly a quarter of what the US was supplying at the time. In fact, 40 years ago, the Desert Kingdom was far from the key supplier it is today--the country’s production accounted for less than 7 percent of the global total. By 1975, the Saudis were already pumping more than 7 million barrels per day and in 1980 the Kingdom’s prolific fields were flowing more than 10 million barrels per day. However, with its aging fields, more advance technology will have to be deployed to ensure production keeps up with demand. Read More

The world’s energy producers are in the midst of a major crunch--demand for oil and gas is rising rapidly while the producers simply aren’t finding new reserves to replace current production. Moreover, cost pressures are building in the group, a function of a shortage of workers and rising raw materials costs. This will be a boon to oil services and infrastructure companies as the pace of exploration increased and more advanced drilling and well technologies are deployed. Read More

Publicly traded master limited partnerships (MLPs) can hand investors high tax-advantaged yields, outstanding growth opportunities and relatively low exposure to volatile oil and gas prices. MLPs are traded right on the major US exchanges just like common stocks. And the better-placed MLPS offer annual distribution growth (payout increases) of 5 to 10 percent on top of yields between 6 and 8 percent. Read More

The third quarter was a strong one for The Energy Strategist portfolios. And even after a sharp pullback for the sector at the beginning of the fourth quarter, the group is the best performing major sector in the S&P 500 this year.  My long-term outlook for the energy sector remains bright, and the recent correction will soon offer an outstanding buying opportunity. In the short run, however, some groups--most particularly the deepwater drillers and some services firms--could see more downside. Read More

Hurricanes Katrina and Rita have severely curtained production and refining capacity in the Gulf Coast region, delivering a vicious one-two punch which will continue to interrupt the energy business for at least the next three to six months. Read More

At two recent investment conferences, I was struck by just how many speakers were trying to call a top in energy stocks, and in oil and natural gas generally. It seems that despite the group’s giant relative outperformance over the past two years, few are ready to believe the move is for real. Of course, calls for a top aren’t entirely misplaced; the simple fact is that every bull market in history had its corrections, and some of those shorter-term corrections can feel pretty severe when they occur. In the end, however, it’s the longer-term trends that generate the real wealth for investors. There are some simple ways for investors to hedge their portfolios. Read More

One thing is clear from second quarter earnings season: Energy companies of all stripes are swimming in cash. With oil and natural gas prices on the rise, the sector is seeing the greatest profitability upswing since the 1970s. But these same companies have a problem. Demand for oil is surging and prices are high, but they’re not finding enough oil to make up for and replace their production. Reserve replacement ratios industry-wide are very low right now. Read More

Oil and natural gas hog the limelight when it comes to the energy markets, for good reason: oil remains the world’s primary transportation fuel and gas is the fastest-growing fuel for power plants. But nuclear energy is gaining ground as it is recognized as a cheap environmentally friendly alternative. This is turn increases the world's demand for uranium. Read More

Natural gas will be the world's fastest growing fuels for at least the next 20 years. Meanwhile, once-abundant reserves of natural gas near key markets such as the US and Europe are depleting. The likely consequence: A massive increase in the global natural gas trade. Fortunately, a technology exists to facilitate the movement--and the trade--of natural gas over great distances. Read More

The price of crude oil has crossed the psychologically important $60 per barrel (bbl) level; the global energy market is far tighter than it has been since the 1970s. Rapid economic growth in Asia has powered a quantum leap in demand for oil and gas. Meanwhile, supplies remain tight as energy companies are finding it difficult and expensive to locate new reserves to meet demand despite all their drilling activity. Read More

Natural gas is the fastest growing major source of energy in the world, with the US leading in demand. However, many of the most productive gas wells are located deep underwater or in remote land sites, making transportation of the gas difficult. However, this booming demand for gas transportation is great news for investors. Third-party companies, other than those companies that explore for and produce gas, often own pipeline networks. Pipeline assets are extremely profitable and throw off tremendous amounts of free cash flow offering investors an opportunity to earn relatively safe, stable yields. Read More

With rising natural gas prices and the pollution generated by burning coal, nuclear energy is a cheap and environmentally friendly way of producing energy. With much of Europe already dependent on nuclear energy and fast-growing nations like China and India planning to make nuclear power a centerpiece of their respective national electricity policies, there will be increased demand for uranium. With this demand comes the excellent profit potential in the form of uranium mining companies. Read More

Energy markets today are experiencing an up cycle similar to that of the 1970's, which should last at least as long and offer well-placed investors the strongest long-term opportunities of any major industry group. Oil demand has continued to increase at a rapid pace, especially in Asia and the emerging markets, despite that fact that big oils are having trouble replacing their reserves. Though there will be occasional pullbacks, several carefully selected companies have a shot at growing faster than the industry at large.. Read More

The global rig count, which includes both offshore and land-based rigs, is at an all time high as all the regions of the world participate in the drilling boom. Contrary to popular belief, most rigs are owned by contract drillers rather than the large consolidated oil companies, which opens other investment opportunities. While the big oils are still a good bet, smaller contract firms can be an excellent value. Read More

In order to continue meeting production demands, oil companies are forced to drill deepwater wells which can lie a mile or more below the ocean's surface. Deepwater drilling is extremely expensive and poses its own unique set of technical challenges, but there are several companies up to the task. With oil prices continuing to rise, deepwater drilling can be a very profitable endeavour for both drilling companies and those who supply the equipment. Read More

The U.S. imports 10 million barrels of oil a day, with Europe and Japan close behind. If that import dependence strikes you as all bad news, think again. The booming oil trade offers investors a shot at earning dividend yields as high as 25 to 30 percent annually on oil tanker shipping companies. Read More