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Jan
7
Ida Hansen
Natural Gas and Energy Stocks are High
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For all those worried about global warming, the polar vortex enveloping the United States should ease the concerns, especially if there is an array of energy stocks in the portfolio.  The best performing commodity in 2013, natural gas is now hitting record price levels due to the demand to heat homes.  Previous articles on this site have been bullish on oil and natural gas stocks ranging from prominent blue chips such as Exxon Mobil (NYSE: XOM) and Phillips 66 (NYSE: PSX) to promising small caps such as Octagon 88 (OTC: OCTX) and Americas Petrogas (OTC: APEOF).

That position has been proven by the stock performances of these companies.

Exxon Mobil and Phillips 66 are both Warren Buffett holdings.  When The Oracle of Omaha buys, it lifts the stock prices.  That has certainly happened with Exxon Mobil, which is up more than 15 percent for the last year.  Over the same period, Phillips 66 has risen over 47%.

For the last year of market action, Octagon is up nearly 90 percent.  Americas Petrogas is now around $1.60 a share, up from its 52-week low of $0.62. Each has a bullish future, based on recent stock performance and the potential of the holdings.

The World Energy Outlook from the International Energy Agency predicted that global energy demand will increase greatly by 2035.

Much of that will have to be met by oil and natural gas.  Countries, even China, are moving away from coal.  It is simply too dirty.  Natural gas is a much cleaner burn.

Alternative energy is nowhere near capable of meeting widescale needs.  Despite the hope, promise, and billions and billions of dollars invested, there is no source that can meet market demand and market prices.  It will stay that way for the future, too.

As a result, investors should be bullish about major oil companies such as Exxon Mobil and Phillips 66.  For growth, Octagon 88 and Americas Petrogas are especially appealing.  That has certainly been demonstrated by the share price performance of each.

 



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