May7,  2010 (Investorideas.com energy newswire) - www.InvestorIdeas.com, a leading investor research portal updates investors with recent market commentary from energy executive Karl Miller.

 

Did You Miss the Biggest Buying Opportunity in Energy Stocks Thursday May 6, 2010?

 

Follow Karl Millers market and energy commentary at

http://www.naturalgasstocks.com/Karl_Miller/

 

Let me start by giving you the conclusions first.

 

Firstly, if you did not take the opportunity on Thursday, May 6, 2010 to purchase high quality oil, natural gas, and utility infrastructure stocks at substantial discounts during the market downturn in excess of 5%, you probably missed the best buying opportunity of 2010.

 

Secondly, oil and natural gas production, and energy infrastructure assets like pipelines, gathering systems and power plants will be a staple of the U.S. economy in perpetuity. Oil and natural gas exploration and production are increasing, not decreasing both offshore and onshore U.S. and if you are not invested in this sector for the long term, you will never beat the long term inflation rate, including transaction costs and taxes. 

 

Now, I grew up in the oil and gas sector with helicopters landing in my backyard on a weekly basis, as my father was one of the industry pioneers and founders of what is now McDermott International (MDR) dating back to the 1960’s. My father and a small team of energy executives traveled the world installing energy infrastructure, primarily offshore oil and gas production platforms, pipelines, gathering systems in the Gulf of Mexico, Ecuador, Nigeria, the North Sea (U.K and Norway), and basically built the Mexican oil and gas infrastructure.

 

I spent my summers while in college working offshore, primarily in the Gulf of Mexico on pipeline lay barges and oil and gas production platforms working 12 hours shifts, as the industry truly does run 24 hours a day on double shifts. When we referred to a “Pig” in the oil and gas business, it meant the device we ran through the inside of oil and gas pipelines to check welds and clean and inspect for defects, not Portugal, Italy, Greece and Spain, which seems to be the excuse to sell high quality energy and infrastructure companies. 

 

Let me dispel that rationale, it is ludicrous and history has shown that you absolutely buy high quality assets and asset backed companies at discounts to create net worth and stay well ahead of inflation, and more importantly, taxes.  Perhaps the old adage and real estate example is appropriate, “Buy distressed real estate, even if it is not distressed, at distressed prices”.

I have seen people get killed, lose hands and limbs, and seriously injured in the offshore oil and gas platforms, as well as spills of oil and blow outs of wells. We used to flare the natural gas from the oil wells when we did not have the natural gas and liquids gathering and processing systems installed as recently as 30 years ago. Not environmentally friendly, but just a fact of the industry at that time.

So, it only seemed logical that when the calling came for me to join the Energy industry, that I take on that role, at first on Wall Street as a clerk on the commodity trading floor, and then a trader, then advancing to developing and acquiring energy assets in the U.S. and globally for many major Oil and Gas and Utility companies. Some refer to me as an Energy Industry Expert. I take a more modest approach and consider myself simply well educated on all aspects of the Global Energy and Infrastructure Industry.  This education comes from both a combination of being in the field and knowing the energy assets including pipelines, gathering systems, and power generation plants and from my extensive background in commodity trading and risk management.

So where does all of this leave us?  Despite my affinity for Energy due to my background and upbringing in an energy family, the simple fact is that Energy is the driving force behind U.S. inflation, GDP, all which encompass job growth and tax receipts for the individual States and the U.S. Government through the payment of royalties.  Why does this matter, well the energy industry is the largest user of “real capital” in the U.S. and Globally. Real capital is defined as “Cash Expenditures” or Capex as the industry analyst like to refer to it.

 

In the last ten (10) years we have seen the advent of the Hedge Fund Industry, many of whom I know and admire. Unfortunately, the overwhelming majority of these hedge funds who have delved into the energy market, by trading oil and natural gas futures, energy stocks, energy bonds, and other exotic instruments, simply have no clue about the “real energy business and the underlying energy assets”, and most of the traders deploying capital into the energy sector for these hedge funds, have never even seen an offshore oil production platform, an oil or natural gas pipeline, a oil and natural gas gathering system, and a power plant.  Thus, they buy and sell on “speculative “ industry statistics, rumors, and other non-fundamental factors, which has greatly distorted the true value of Oil and natural gas producers, pipeline companies and utilities in the U.S.

 

For public interest I disclosed my model energy portfolio “Charitable Energy Stocks” on January 27, 2010. To see my model energy portfolio go to weblink:

http://www.naturalgasstocks.com/Karl_Miller/news/1281.asp

 

Topping my conviction must own or buy list are Occidental Petroleum (OXY) an outstanding mid-cap integrated oil, gas and chemical producer; Chesapeake Energy (CHK) the premier acquirer, developer and producer of low cost shale gas with a world class set of integrated oil partners, and McDermott International (MDR) a company that primarily services U.S. Utility power generation fleet, performs U.S. government contract work, and services the oil and gas industry through fabrication and other non-drilling related operations, in addition to the balance of the disclosed energy portfolio.

 

They say in the military tell them what you are going to tell them, tell them, tell them what you told them and then tell them again.

 

“Oil and natural gas exploration and production are increasing, not decreasing both offshore and onshore U.S. and if you are not invested in this sector for the long term, you will never beat the long term inflation rate, including transaction costs and taxes”.

“Great Deeds are not for Cowards”:

By Pindar

 

Follow Karl Millers market and energy commentary at

http://www.naturalgasstocks.com/Karl_Miller/

 

 

 

Mr. Miller is a globally recognized energy executive and institutional investor with a balance of both financial and energy sector expertise. Mr. Miller began his career on Wall Street during the 1980s and has an extensive background in banking, commodities trading and risk management.

 

Mr. Miller has built, restructured and managed energy businesses for major public energy companies on several continents, including PG&E Corporation, Electricite de France, El Paso Energy, Enron Corporation and JPMorgan Chase.

 

Investors following the energy sector can also follow Karl Miller in the energy news RSS feed. Subscribe here:

http://www.investorideas.com/RSS/feeds/Energy.xml

 

Energy Investors can research energy stocks with the natural gas stocks directory:

http://www.investorideas.com/Companies/NaturalGas/Stock_List.asp

 

The oil and gas stocks directory lists publicly traded stocks from multiple global stock exchanges including TSX, ASX, OTC, NASDAQ and NYSE.

http://www.investorideas.com/OGSN/stock_list.asp

 

Investors also have the option to access the directory as part of the Investor Ideas Membership premium content. The full directory is now available to Investor Ideas members as part of the annual membership that currently features 10 stock directories and investor newsletter, including an oil and gas stocks directory.

 

Join Investor Ideas in the 2010 Campaign- One Million Members Stronger - Learn more about becoming a member    

http://www.investorideas.com/membership/

 

About InvestorIdeas.com:

InvestorIdeas.com is a leading global investor and industry research resource portal specialized in sector investing covering multiple industry sectors including water, mining, renewable energy, energy, biotech, defense   and global markets including China, India, Middle East and Australia. The website covers several sectors but has a focus on environment and water. Investorideas.com meets the needs of retail investors, public companies and entrepreneurs with unique tools and services ranging from stock directories, newsfeeds, funding directories and more.

 

Disclaimer: Our sites do not make recommendations. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. We attempt to research thoroughly, but we offer no guarantees as to the accuracy of information presented. All Information relating to featured companies is sourced from public documents and/ or the company and is not the opinion of our web sites. This site is currently compensated by featured companies, news submissions and online advertising. www.InvestorIdeas.com/About/Disclaimer.asp

 

For Additional Information:  

 

Dawn Van Zant: 800-665-0411 - This email address is being protected from spambots. You need JavaScript enabled to view it.

Source – Investorideas.com