NEW YORK ( TheStreet) -- The outlook for crude is optimistic with the December 2011 futures contracts touching $100 a barrel on Nov. 24, according to Bloomberg data. A bullish outlook for crude oil augurs well for energy stocks, especially since the sector took a beating after a BP ( BP) deepwater oil rig exploded in the Gulf of Mexico -- one of the biggest natural disasters to date. Crude is up 7%-8% this year, although experts foresee prices hitting $100 a barrel next year as spare production capacity shrinks on accelerating demand.

Positive U.S. economic releases, a stable China and India growth rates could support the spike in crude oil prices. However, slower euro zone growth could dampen the uptrend. Nevertheless, the Energy Select Sector SPDR ( XLE) is outperforming the SPDR S&P 500 ETF ( SPY), delivering year-to-date returns of 10% and 7%, respectively.

We have selected eight energy ADRs with potential upsides. These oil companies have strong fundamentals and earning prospects. Companies like Eni ( E) could grab headline news as the government of Italy plans to sell its stake in the company. In contrast, Total ( TOT), Repsol YPF ( REP), Royal Dutch Shell ( RDS.A) and Statoil ( STO) have attractive dividend yields of 4.7%, 5.9%, 5.5% and 4.6%, respectively. Better dividend yields could make long-term investments in these companies productive, especially given the volatile market conditions.

Several companies like BG Group ( BRGYY), OGX Petroleo ( OGXPY) and Petroleo Brasileiro ( PBR) have expansion plans from several exploratory wells in Brazil. This augurs well for these companies as newer capacities would boost their earnings profiles in the long term. China Petroleum & Chemical Corporation ( SNP) expects production from Puguang's main block to continue for more than 20 years. The stocks are stacked by upside, great to greatest.

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