This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Dicker's Energy Picks for 2011

NEW YORK ( TheStreet) -It's time once again to select our top oil stocks for the coming year. Last year saw some interesting energy developments, all of which were sidetracked by the BP oil spill -- and made predictions for the year impossible.

Barring something unforeseeable like that, however, 2011 promises to be a great year for energy, with a rising crude price and what I believe will also be a breakout year for natural gas in sharp contrast to most energy analysts out there who see natural gas as remaining flat for the coming 12 months. So, let's get to the picks.

Integrated Oil

Just about everyone has gotten on the bandwagon, calling for $100 dollar or more crude oil prices in 2011. Now, I could claim to be the bandleader, having made my call for $100 oil in the second quarter of 2011 as early as August, but the overwhelming chorus of bullish oil predictions has me a little worried now. I mean, when was the last time everybody was right at once?

Top 3 Energy Stocks for 2011

Still, with investment interest in oil being fueled by a recovery that is clearly on track, industrial growth both here and in the emerging markets and a real shortage of oil services units to get to the backlog caused by the summertime BP (BP) disaster, it's tough to be bearish on the price of crude. The "risk trade" alone is enough to force crude over the $100 dollar hurdle relatively quickly.

If oil is headed higher in 2011, there are obvious ways to take advantage of the trend - and no, that does not include the futures-based ETF's for oil like the United States Oil Fund (USO), probably the worst investment out there.

The best way to leverage a rising price for crude is with the integrated oil companies, historically the best proxy. In that space, Exxon-Mobil (XOM) has continued to be my top pick for its best of class return-on-equity (ROE) and its underperformance compared to the other large integrated stocks.

I am relying upon Exxon's proven execution of long-term strategy, 25-year history of increasing dividends and stock buyback programs to prove that it will ultimately outperform the rest of the sector.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,279.74 +13.75 0.08%
S&P 500 2,010.40 -0.96 -0.05%
NASDAQ 4,579.7890 -13.6380 -0.30%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs