Readers of this space know that a preferred sector given current U.S. economic and global growth conditions is the oil / oil services sector.

Further, a mild oil price pull-back does not change the sector's outlook, nor does it change the prospects for Occidental Petroleum (NYSE: OXY).

Occidental has what many analysts like: a geographically diverse reserve base, demonstrated production, substantial liquidity, and ample reserves.

More positives: Occidental has done a pretty good job containing operating expenses, and its estimated finding/development costs are $21.30-$22 per barrel, depending on the survey. The Reuters F2007/F2008 EPS consensus estimates for OXY are $5.06/$5.67.

The risks? Analysts have their eye on OXY's Russia operations and long-term debt, and the company remains vulnerable to sustained slumps in oil / natural gas prices. But as long as oil remains above $50 per barrel, Occidental looks like it will perform reasonably well in the immediate years ahead. Further, OXY's shares ran into some resistance near the $75 and have pulled back to around $69, but view that pull-back as a buying opportunity.

Finally, Occidental's modest p/e of 14 lowers the risk/return for the stock, unless you see oil heading under $50 per barrel. But don't hold your breath waiting for that to occur.

The First Call mean rating for OXY is: Buy. (19 firms.) Mean 2008 target: $74.20. (high: $87, low: $56.)

Stock Analysis: Occidental Petroleum is a moderate-risk stock not suitable for low-risk investors. Investors with an investment horizon longer than two years should be rewarded from OXY's shares. Sell / Stop Loss if you were to purchase shares in this company: $44.