This Day On The Street
Continue to site
ADVERTISEMENT
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

How to Heat Your Home for Free (or Profit)

If these individual stocks are too pricey for your budget, you may want to seek out mutual funds that include some of these top companies among their heavily weighted holdings.

Supply disruptions overseas -- even in the short term -- increase demand for alternative sources, which is good news for companies focused on drilling and exploration. Anadarko, for example, has oilfields in several U.S. States and, further North, Canada's vast oil sands could be a continued boon for Suncor Energy (SU - Get Report).

North Dakota and Montana are home to "The Bakken," a formation of shale covering about 200,000 square miles that is estimated by the U.S. Geological Survey to have as much as 4.3 billion barrels of potentially recoverable crude. Among the companies working to extract that oil are Continental Resourcess (CLR - Get Report), Hess (HES), Oasis Petroleum (OAS - Get Report), Kodiak Oil & Gas (KOG), Northern Oil & Gas (NOG - Get Report), MDU Resources Group (HEW), EOG Resources (EOG - Get Report), Whiting Petroleum (WLL - Get Report) and Marathon Oil.

Pipeline owners such a Constellation Energy (CEG) may also their stock price rise in concert with oil prices, as could Schlumberger (SLB - Get Report), the world's largest oilfield services company.

Oil refineries feel the pinch of rising costs per barrel as their costs to buy oil go up even as demand for their finished product drops. Offshore drilling companies such as Transocean (RIG - Get Report) (despite the Deepwater Horizon disaster) and SeaDrill Limited (SDRL - Get Report) are key players in that arena.

The simplest way to hedge against oil inflation for most Main Street investors is to consider ETFs designed with that very goal in mind.

In its prospectus, United States Heating Oil Fund (UHN) is described as "a way for investors and hedgers to manage their exposure to energy" and an ETF "designed to track in percentage terms the movements of heating oil prices." Year to date, the fund is up 5.6%, and it saw a return of 15.64% for a one-year period.

The United States Oil Fund (USO) is designed to track the price movements of light, sweet crude oil. Unfortunately its returns have been far from stellar, down approximately 21% so far this year and at -54.5% since its inception in 2006.

Other funds worth investigating are the iPath S&P GSCI Crude Oil TR Index ETN (OIL), SPDR S&P Oil & Gas Exploration & Production ETF (XOP) (which has a three-year return of over 22%), SPDR Oil & Gas Equipment & Services Fund (XES) and the PowerShares DB Crude Oil Long ETN (OLO) (up a slight 0.14% for the year).

--Written by Joe Mont in Boston.

>To contact the writer of this article, click here: Joe Mont.

RELATED STORIES:


3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
KOG $6.56 0.00%
APC $74.35 0.00%
BP $36.97 0.00%
CHK $8.66 0.00%
CLR $33.41 0.00%

Markets

Chart of I:DJI
DOW 17,689.86 -56.12 -0.32%
S&P 500 2,103.84 -4.79 -0.23%
NASDAQ 5,128.2810 -0.5040 -0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs