Readers of this space know that one argument I forward here is that in the era of elevated energy prices, oil/natural gas companies are likely to remain promising plays for the foreseeable future, barring the discovery of a cheap, widely-available, alternative energy. And among oil/natural gas companies, Petroleo Brasileiro is worth a review.

Petroleo Brasileiro SA Petrobras (NYSE: PBR) is Brazil's largest industrial operation, with oil/gas production, refining and purchasing businesses, and oil/gas transport services.

(Note: Petroleo's shares split 2-for-1 in May 2008.)

Analysts really like PBR's proved reserves of 15 billion barrels of oil equivalent, 12,900 wells, 16 refineries, 31,000 kilometers of pipeline, and astounding 5,870 gasoline stations. Further, analysts see 2008 production rising about 11-14%. The Reuters F2008/F2009 EPS consensus estimates for PBR are $4.91/$5.03.

The risks? Analysts have their eye on PBR's operating costs. Also, PBR's concentration in Brazil means a downturn in that country's economy will hurt results.

Stock Analysis: Petroleo Brasileiro is a moderate-risk stock not suitable for low-risk investors. Investors with an investment horizon longer than two years should be rewarded from PBR's shares. Sell / Stop Loss if you were to purchase shares in this company: $78.

Disclosure: Lazzaro has no positions in stocks. In addition to private real estate holdings, he owns corporate and municipal bonds, and cash certificates of deposit.

It doesn't take a Harvard mathematician or a Wall Street investment banker to realize we're in the era of high energy prices.

One way to compensate for the increased energy cost: consider an investment in an oil/oil services company whose fortunes are directly linked to the world's most vital commodity -- oil. With this in mind, Superior Energy is worth a review.

Superior Energy Services (NYSE: SPN) provides specialized oil field services to oil and gas companies operating in the Gulf of Mexico and on the Gulf Coast. The company also sells and rents oil/gas well drill equipment and tools on four continents.

In general, analysts like SPN's rental tools and intervention services businesses, and the fact that SPN's services help oil/gas companies maintain production during seasonal down periods, which anesthetizes SPN somewhat from commodity price volatility.

Further, international expansion opportunities are promising: analysts say additional SPN expansion abroad will lessen the earnings impact of a downturn in key Gulf of Mexico operations. The Reuters F2008/F2009 EPS consensus estimates for SPN are $4.09/$4.84.

The risks? Reduced demand for SPN's production-oriented services and/or a large, sustained decline in energy prices, particularly oil, would hurt SPN's results. Don't look for the latter anytime soon.

The First Call mean rating for SPN is: Buy. [5 firms.] Mean 2008 target: $60. [high: $66, low: $56.]

Stock Analysis: Superior Energy Services is a moderate-risk stock not suitable for low-risk investors. Investors with an investment horizon longer than two years should be rewarded from SPN's shares. Sell/Stop Loss if you were to purchase shares in this company: $38.

Disclosure: Lazzaro has no positions in stocks. In addition to private real estate holdings, he owns corporate and municipal bonds, and cash certificates of deposit.

It goes without saying that diversification is one defense against the onset of a bear market. Further, occasionally the market offers a conglomerate that possesses many of the characteristics of a diversified mutual fund or portfolio, and with the above in mind, Loews is worth a review.

Loews (NYSE: LTR) is a holding company with operations that include property / casualty insurance, hotels, offshore oil/gas drilling, natural gas pipelines, and cigarettes. Don't confuse LTR with that other company with a similar-sounding name: LTR is a conglomerate.

Analysts really like LTR's Diamond Offshore deepwater/midwater oil rig operations, which, as one might sense, are experiencing strong demand and pricing power, given the global drive for more oil. Analysts are equally impressed by LTR's natural gas pipeline business.