Art Smith: Where to Invest in Energy

Description:

In the Feb 12 issue of the weekly, Barron's interviewed Art Smith of John S. Herold, a highly respected energy research and consultant company. In the interview Smith outlined the "exploration paradox," of how even though demand for oil continues to grow, many major companies no longer believe in the risk/reward setup of exploring for new oil finds. Many will go the acquisition route instead. To quote him directly:

"Our bottom line on this exploration paradox is that it will cause the large companies to review all the major players in the world, and those that have undeveloped reserves of significant magnitude but require capital will be the targets. Major oil companies have become bankers, rather than risk-takers."

Smith is also bullish on Natural Gas. This portfolio consists of his stock related ideas during the interview, and some direct quotes.

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