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

[video] Dicker: Investable Energy Trends for 2014

NEW YORK (TheStreet) -- I was talking to Jim Cramer today about the macro trends I see in energy. Understanding those trends will help us select profitable long-term investment ideas for 2014.

Of the many investable energy trends, the most important I see is the bifurcation between U.S. crude production and production in the rest of the world.

In the U.S., we have increased our crude production by two-thirds in the last five years, with an increase of more than 700,000 barrels a day this year alone. We are now using more domestically produced oil than we import for use, the first time that has happened in more than 40 years. The U.S. Energy Information Administration predicts our production will increase another 1.2 million barrels a day in the next 18 months.

That is in contrast to more traditional global production elsewhere, which is stagnating. Saudi Arabia, with its 10 million-barrel production, is at the limits of its capability. There is limited production in Iraq, Iran, Syria, Libya and Egypt. North Sea production is waning and Nigeria remains a powder keg.

These production difficulties in the Mideast will, I believe, continue to plague the global oil markets through 2014, making prices for U.S. crude oil continue to sharply lag prices elsewhere around the globe.

For investors, the best performance will be found in oil and gas companies that are producing outside the U.S. and capturing that strong global premium.

I talk more about this trend with Jim in the video above.

At the time of publication the author had no position in any of the stocks mentioned.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.

Dan Dicker has been a floor trader at the New York Mercantile Exchange with more than 25 years of oil trading experience. He is a licensed commodities trade adviser.

Dan is currently President of MercBloc LLC, a wealth management firm and is the author of "Oil's Endless Bid," published in March of 2011 by John Wiley and Sons.

Dan Dicker has appeared as an energy analyst since 2002 with all the major financial news networks. He has lent his expertise in hundreds of live radio and television broadcasts on CNBC, Bloomberg US and UK and CNNfn.

Dan obtained a bachelor of arts degree from the State University of New York at Stony Brook in 1982.

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
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!
SYM TRADE IT LAST %CHG
AAPL $130.28 0.00%
FB $81.53 0.00%
GOOG $565.06 0.00%
TSLA $218.42 0.00%
YHOO $44.52 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs