The Energy Investment Picture

We say oil prices will be lower for longer,said Fadel Gheit,senior energy analyst at Oppenheimer&Co.Fundamentally,supply is still ample and exceeds the demand.The demand picture is weak.I actually say,sell oil stocks on a spike;buy them on dips.*
On the good side,you've got the industry bellwether Schlumberger,adds Ken Sill,managing director and senior oilfield services analyst of Global Hunter Securities.Halliburton is doing well.Superior Energy has good balance sheets and is growing internationally.*
Chevron,the second largest US oil company,is laying off 1500 workers,or 2% of its workforce,as part of an effort to cut costs by a billion dollars to offset the decline in the price of oil.Prices have sunk about 55% in the past year on oversupply.Most of the layoffs will be in Texas,where Chevron has holdings in the Permian Basin shale formation,and California,where its headquarters are located.
In light of the current market environment,Chevron is taking action to reduce internal costs in multiple operating units and the corporate centre,Chevron spokeswoman Melissa Ritchie stated.These initiatives,which are currently underway,are focused on increasing efficiency,reducing costs and focusing on work that directly supports business priorities.*
The Chevron layoffs include 50 international staff;600 contractor positions;500 positions from the San Ramon,California headquarters;and 270 open positions that won't be filled.
The consensus seems to be that now is a good time to buy the stocks of these basically sound companies that are going at bargain rates.
Chevron (CVX);Halliburton (HAL);Schlumberger (SCHL);Superior Energy (SPN)

Investing Opportunities 2015

For 2015,your New Year's resolution should be to invest,says Winnie Sun of Sun Group Wealth Partners.If you're looking for value and opportunity,I really like the story of investing in Europe.The most important thing is time horizon.If your time horizon is long,there's no reason to be afraid of investing in Europe.*
David Seaberg of Cowan&Co. says that energy is setting up to be a massive trade.I think you saw a massive de-risking.I'm absolutely set up.A lot of managers came in and sold positions out.The higher quality names,I'd be buying them across the board here.
Europe could be a big opportunity.I think small caps are going to continue to move forward.*
Michael Farr of Farr,Miller&Washington says to place bets carefully in the stock market.JP Morgan Chase is trading at 10 times earnings,with a 2.5% dividend.I think they're doing fine now,and banks are poised to do well when the Fed raises rates.
I like Chevron.It might not be at the bottom yet,but it pays a 3.8% dividend.
Google has a solid balance sheet,with double digit earnings growth.They've moved away from a dependence on search.They've continued to evolve into a multi-media company and have settled down in Asia.*
iShares Europe Etf(IEV),Chevron(CVX),Exxon Mobil(XOM),JP Morgan Chase(JPM),Google(GOOG)

Power Woes Continue for Japan

Still ailing from the 2011 earthquake and tsunami,Japan may face rolling blackouts this summer,according to Penn Bowers,Asia-Pac Power Company Analyst at Credit Agricole.The severity of them is the big question.If they are unable to distinguish among big electricity users such as hospitals,there could be a big backlash. Power companies have been eating the costs of the disaster,cutting dividends in the process.Dominant utility TEPCO,the Tokyo Electric Power Company,has been taken over by the Japanese government,which is giving it a one trillion yen bailout to deal with its crippled nuclear plants. If Japan's 50 nuclear power plants don't restart,there will be a lot of pressure on the government to reduce the cost burden of alternative fuels such as gas and oil,Mr.Bowers predicted.TEPCO is actively seeking a permanent solution to its generation shortfall,engaging in talks for a 4.4 billion dollar stake in a Chevron Australia liquified natural gas project called Wheatstone.TEPCO has asked multinational conglomerate Mitsubishi Corporation and shipping company Nippon Yusen KK to participate in the deal,fearful that China will come in with a higher bid for the Wheatstone LNG field stake. Chevron(CVX),iShares MSCI Japan Index Fund(EWJ)

Defining Financial Reality

Asia in general is the strong point of the global economy,says Michael Yoshikami,Chief Investment Strategist at YCMNET Advisors.He's thinking investors are getting over their initial panic over Greece.Not everything is going wrong,though Europe is essentially seen as an economy that's going to be struggling for years and years.He doesn't think the U.S. and China are gonna destroy each other.They're gonna work together to succeed.
If you're in a trading range,you watch for opportunities now that every thing's been trashed.There's way too much concentration on BP;Exxon Mobil and Chevron have some promise as investments.You have to get away from seeing the market as reality.The market is reaction plus sentiment.The economic fundamentals are reality,Mr.Yoshikami believes.
BP plc(BP),Exxon Mobil(XOM),Chevron(CVX)