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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

'Texas of Italy' Shows Strong Energy Potential


France's loss could soon be Italy's gains, with potential profits for investors around the world.

Italy is moving to double its annual oil production by 2020. That will reduce its oil import bill by about one-quarter and immediately benefit the economy. Italy's annual oil import cost is 62 billion Euros. Every Euro that goes abroad to pay for oil is one that doesn't to stay at home to create employment opportunities for Italians. The Great Recession took the unemployment rate in Italy to record levels (over 12%), so every Euro possible is needed.

The more oil pumped in Italy and the more citizens working, the more tax revenues for Rome and the localities of the country.

For investors, there are income, value and growth opportunities in European energy stocks. ExxonMobil has a dividend yield of 2.65%. For ENI SPA, it is 5.12%. The dividend income from Total SA comes at a 5.58% rate. Both BP and Royal Dutch Shell have dividend yields over 4.5%.

Value and growth investors should look to the small cap sector. Both Octagon 88 (up 74.85%) and SeaDrill Partners (up 18.46%) have also done well over the last year of market action. The analyst community remains bullish on each: SISM Research set a target price of $23.11 for Octagon 88, with Global Hunter Securities LLC expecting SeaDrill Partners LLC to reach $38 from around $31.38, according to Finviz.

Investors should expect European governments to be more supportive of the energy sector.

There is nothing but upside. The immediate result will be more jobs and more tax revenues, both desperately needed. Long term, the economies of European nations will grow as the energy sector increases. Investors in the drillers, producers, explorers and others should do well from the European governments doing the right thing for their constituents, their countries and the global economy. At the time of publication, the author held no positions in any of the stocks mentioned.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

Jonathan Yates has written for numerous publications including Newsweek and The Washington Post. He is a former general counsel for a publicly traded corporation. Much of his career was spent working on Capitol Hill for Members of Congress in both the House and Senate. He has degrees from Harvard University, Georgetown University Law Center and The Johns Hopkins University.
2 of 2

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 17,092.76 -20.78 -0.12%
S&P 500 1,988.14 +4.61 0.23%
NASDAQ 4,474.0890 +18.0730 0.41%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

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