How to Play Lower Oil Prices

By Larry Bellehumeur of Covestor.com

It's hard to believe that only a few months ago, U.S. drivers were talking about the possibility of $5 per gallon for gasoline. Now, the average price has fallen to below $2 in most areas and may fall further with the recent drop of 20% in oil in just the past week alone.

The lower price of oil no doubt acts as a form of stimulus to the economy (as it puts more money into cash-strapped consumers' pockets), is it really the best thing for everyone in the long run?

First, only a few months ago, everyone was talking about how they had to conserve energy. While this was mostly in the form of driving less and even downsizing their vehicle, I actually started to hear more about people using low-energy light bulbs and solar power. Recently, such chatter seems to have died down. One has to fear that people really haven't changed their long-term habits when it comes to consuming oil. ...