A recent article on this site reviewed why the just out “BP Energy Outlook” is so bullish for Big Oil firms such as ExxonMobil (NYSE: XOM), Chevron (NYSE: CVX), and BP (NYSE: BP).  While that article by John Murphy, “BP Report Bullish for Big Oil,” provided excellent investment advice, there are many small cap oil and natural gas companies that should do well, too.   Long term investors should be bullish on the prospects for Octagon 88 (OTC: OCTX), Americas Petrogas (OTC: APEOF), and other small cap oil and natural gas entities.

The BP Energy Outlook predicted that global energy demand will increase 41 percent from 2012 to 2035.

The bulk of that will be met by fossil fuels.  Alternative energy sources such as sun power, wind, and others just do not have the output to meet the needs of the market.  Investors should not expect a “silver bullet” in alternative energy, either.  It takes decades to develop the infrastructure for producing energy to meet appreciable market demand.  As an example, the first commercial usage of fracking was in 1949.

That is especially true for natural gas.  Even China, which has more purchasing power than any other country, does not have the infrastructure for widespread natural gas usage.  Three sets of pipelines are required for using natural gas as a power source.

That is what makes small caps in oil and natural gas so attractive.  FIrms like Americas Petrogas and Octagon 88 can deploy the same technology for projects of the optimal size.  While Octagon 88 and Americas Petrogas will not be engaging in multi-billion projects, that does not keep each away from lucrative ventures.  Both companies have very promising holdings.

Octagon 88 and Americas Petrogas can also work on profitable projects that are not big enough for a BP, ExxonMobil, or Chevron.  That is equally rewarding to the shareholders, though.  The stock performance of Octagon 88 and Americas Petrogras is proof of that!