Riding the oil bull

Suncor Energy (SU)
Canadian integrated oil & gas company. Has a big tar sands segment that makes the company interesting, but it’s oil and natural gas operations are also well suited for a high price environment.

“[Suncor] said it will hedge about 7,000 barrels per day at a minimum price of $50 per barrel in 2006 and 2007 and would consider more hedges of up to 30 percent of crude oil production.”

One thing to consider is that the process of extracting oil from tar sands takes a lot of natural gas. The natural gas price is going to soar along with oil prices. It takes 1000 cubic feet of gas to convert a barrel of bitumen into light crude (at todays prices 1000CF of natural gas costs around 14% as much as a barrel of crude)

Distributed Energy Systems (DESC) is on the watchlist.
Among other things, the company manufactures cost effective hydrogen fuel cells and wind turbines. As a rather big company with a broad customer base and working products it is a low risk investment. It doesn’t have the potential most of the speculative investments this blog will focus on do but it is a safe bet.

Hello everyone.
This blog was started to keep track of news in oil investing related matters. It is based on the assumption that the price of oil and energy in general will rise heavily in the near future. Keeping this in mind we try to focus on stocks and other assets that will boom along with oil prices. Feel free to comment on posts. Also don’t hesitate to contact us if you want to contribute.