I'm reiterating my buy rating for Occidental Petroleum (OXY), first recommended on April 27, 2009, at a price of $54.81. If you bought OXY in April, you're up an impressive 52%.

Occidental, which focuses on oil and gas exploration and production and has no refineries, is well-positioned to capitalize on oil's likely upcoming surge to triple digits. OXY's oil and gas production should increase about 6 to 7% in 2009, with another solid increase seen in 2010.

Did you a get chance to establish a position in oil giant Occidental Petroleum back in April? If you did, you're up about 35%, and the future looks bright.

I'm reiterating my Buy rating for Occidental Petroleum (NYSE: OXY), first recommended on April 27, 2009 at a price of $54.81.

It goes without saying, that the oil/oil services sectors are preferred here. Look for oil to remain a major fuel for propulsion for at least three more decades, even with alternative energy source development. And with the aforementioned in mind, Occidental Petroleum (NYSE: OXY) is worth a review.

Occidental Petroleum engages in oil/gas exploration and also makes basic chemicals, plastics, and petrochemicals. The company has proved reserves of 3 billion barrels of oil equivalent in three regions: U.S./North America, Middle East, and Latin America.

TheStreet.com's Jim Cramer says the companies could deliver money to shareholders without sacrificing growth.

What happens if the oil companies start actually recognizing their good fortune -- their sustainable good fortune -- and start boosting dividends the way that Tidewater (NYSE: TDW) (Cramer's Take) did last week with its 67% hike.

Throughout this great run with oil and gas, it seems that the companies themselves haven't caught up with the good fortune. They haven't spent that much on drilling relative to profits, and they have chosen to buy a lot of stock back, never bad. But what if they start returning the profits to shareholders in the form of dividends?

I think that what could happen is that you wouldn't think that Chevron (NYSE: CVX) (Cramer's Take) and Occidental Petroleum (NYSE: OXY) (Cramer's Take) and Exxon (NYSE: XOM) (Cramer's Take) are such nose-bleeders.

The record run of oil, already up a gaudy 400% since 2000, continues, with prices breaking through $122 per barrel on Tuesday, May 6, 2008.

Meanwhile, gasoline prices, up about 20% in the past six months alone, and about 100% in the past four years, show few signs of moderating in the months ahead.

It's the era of high oil/energy prices, and until a readily-available, affordable energy substitute is found and/or oil prices decline, the oil / oil services sector will be in demand, which bodes well for Occidental Petroleum Corporation (NYSE: OXY).

Shares of were trading near record highs when ConocoPhillips (NYSE: COP) started off the new year by announcing that it expected fourth quarter production results to exceed those of the third quarter. But it was good news/bad news for the company this past week.

The good news: The Wall Steet Journal reported that Conoco was now the front-runner to participate in a multiyear, $10 billion project to develop the Shah natural-gas field in Abu Dhabi, beating out such rivals as Occidental Petroleum (NYSE: OXY) and Royal Dutch Shell (NYSE: RDS.A). Abu Dhabi National Oil Co. had been expected to name a partner for the project last year, and oil companies have become frustrated by the delays. Abu Dhabi is trying to meet rising demand for natural gas, which has surged with the building of gas-fired power stations and desalination plants.

The bad news: The company's donation of $5 million to a local cancer center apparently did not impress Alaska state officials sufficiently to allow Conoco to go forward with its nonconforming proposal for a natural gas pipeline project in that state's North Slope. Conoco's proposal had requested that state taxes be fixed on the project for decades, which prompted Governor Sarah Palin to send Conoco a rejection letter. The rejection left TransCanada Corp. (NYSE: TRP) as the sole finalist for the project.

Conoco shares have fallen 5.96% since the beginning of the year, and closed Friday at $83.04.

Akeena Solar, Inc. (NASDAQ: AKNS): A recent licensing deal is still pushing shares up. It hit 52-week high of $15.65 against period low of $2.97.

Teva Pharmaceutical Industries Ltd (NASDAQ: TEVA): TEVA recently got an FDA green light on new generic nausea drug. It's up to $49.08 from 52-week low of $30.81.

Superior Energy Services, Inc. (NYSE: SPN): Superior won a major contract to repair Gulf drill rigs. It jumped to $44.70 from 52-week low of $28.20.

Monsanto Company (NYSE: MON): Monsanto posted outstanding financial results. It traded up up to $123 from 52-week low of $49.10.

Occidental Petroleum Corporation (NYSE: OXY): The market is mad for energy stocks. This one climbed up to $80.93 from 52-week low of $42.06.

Douglas A. McIntyre is an editor at 247wallst.com.

Hess (NYSE: HES) closed at a record high of $104.40 Wednesday. WTI Crude futures are down 0.30% to $95.68 according to Bloomberg. HES overall option implied volatility of 46 is above its 26-week average of 38 according to Track Data, suggesting larger price risks.

Occidental Petroleum (NYSE: OXY) closed at record high of $78.06 Wednesday. OXY operates in two segments: oil-gas and chemicals. OXY has a market cap of $64 billion with long-term debt of $1.7 billion. OXY overall option implied volatility of 34 is near its 26-week average according to Track Data, suggesting non-directional price fluctuations.

Options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com