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UMO Contributor: Heath Norton 

If you haven’t faced it yet the reality is this, high gas prices are here to stay. Higher than Snoop Dogg in
Amsterdam even.  The energy situation we are currently in has created numerous investment opportunities for folks, so if you can’t beat those that are squeezing your pockets dry, you may as well join them. You can bet that the cost of gas is just going to get higher so here are some investing tips to make up for what you are losing at the pump.

 

Energy Funds & ETF’s- This is probably the most comprehensive way to invest in energy. These ETF’s track the performance of a number of energy companies in various aspects of the industry. Companies involved in exploration, production, marketing, refining, etc. of oil and natural gas can be found in this index. Researching these tickers at Yahoo Finance (http://finance.yahoo.com ) along with others will give you insight. FSENX, XLE, OIH.

 

Investing in big oil directly – Most of you have heard about the record profits being made by big oil companies. When a company is generating profits larger than the output of some small countries, it may be worth a look. The Big Oil companies include: Exxon Mobil, Royal Dutch Shell, BP, Total S.A., Chevron Corporation and ConocoPhillips. Buying these individual stocks could have long term benefits for your portfolio.

 

The back end – This includes corporations that produce machinery for exploration, production and refining. Engineering firms that design power plants and refineries. Companies that make oil piping, etc., etc., etc.

 

Alternative energy – Finding other sources of energy to reduce the dependency on oil has become big business. Wind, solar and ethanol energy companies are ways to diversify your energy portfolio. Better yet is investing in an alternative energy fund. Two to consider are the Calvert Global Alternative Energy Fund (http://www.calvert.com/alternativeenergy/globalalternativeenergyfund.html) and the New Alternatives Fund (http://www.newalternativesfund.com).  

 

As always, for more information check us out at www.urbanmoneyonline.com