"Schlumberger Limited (SLB) is the world's leading oil services company, assisting in exploration, production and most other oil services; its operations include being a leader in applying proprietary technologies to extract hard-to-extract oil and gas," says Michael Shulman.

The editor of The Short-Side Trader suggests, "Let's ask ourselves the following question: Over the next year is the there going to be more, less or an equal demand for oil? The answer is clearly more demand.

"Another question: Over the next year is there going to be more, less or an equal supply of oil?

"Oil had a good year in 2010, rising 15 percent, and 2011 looks to be even better, as a stronger global economy pushes demand for resources higher," says Stephen Leeb.

The editor of The Complete Investor explains, "Oil service and equipment companies are the most leveraged way to play rising oil prices. Here's a look a Schlumberger (SLB) and National Oilwell Varco (NOV).

"First is Schlumberger, operating in more than 80 countries. The company is the world's leading supplier of energy technology, project management, and information solutions.

"Many of the best opportunities lie outside the major indices, where a myriad of good stocks can fly under the radar. In fact, isn't a member of the S&P 500 or the Dow," says John Reese.

The editor of Validea explains, "Atwood Oceanics (ATW), a Houston-based offshore oil drilling firm, gets strong interest from both my Benjamin Graham- and Peter Lynch-inspired strategie.

"With a $2.4 billion market cap. Atwood has been a big winner for one of my most stringent -- and most successful -- strategies, the model I base on the writings of the late Benjamin Graham.

"The oil services and equipment industries have been a hotbed of M&A activity over the past few years, a trend that should continue into 2011," says energy sector specialist Elliott Gue.

The editor of The Energy Strategist explains, Three of my top 10 takeover plays hail from this part of the energy patch: Core Laboratories (CLB), Dresser-Rand (DRC) and Dril-Quip (DRQ).

"With a market capitalization of more than $100 billion, Schlumberger (SLB) should add to the dozens of acquisitions it's closed over the past few years.

"Seadrill (SDRL) is the best-placed contract driller in my coverage universe," says energy sector specialist Elliott Gue.

The editor of The Energy Strategist explains, "The company doesn't produce or explore for oil and natural gas; rather, it is in the business of owning drilling rigs that are leased out to major producers for a daily fee known as a day rate.

"There are three major reasons to buy Seadrill. First, the company has the youngest and most advanced fleet of drilling rigs of any of the major contractors.

"The disaster in the Gulf of Mexico is likely to have positive ramifications for Cameron International (CAM)," says energy sector specialist Elliott Gue.

The editor of The Energy Strategist explains, "The political fallout could usher in stringent regulations governing blowout preventers (BOP), subsea equipment and redundant safety systems on rigs.

"Such an outcome would be consistent with past experience in the energy industry. After the Exxon Valdez spill, the government pushed oil companies to use double-hull tankers and phase out single hulls.

The price of oil could moderate in the year ahead, if U.S. and global GDP growth comes in below forecasts. Otherwise, there's a better than 50/50 chance oil arcs toward $100 -- again -- and that's a big reason I'm reiterating my buy rating for Oceaneering International (OII), first recommended on April 7, 2009 at a price of $38.01. If you bought OII in April 2009, you're up about 50%.

To be sure, renewable energy source use is on the rise, but breakthrough energy form discovery aside, oil will continue to be the world's most important commodity for at least 15-20 years, and probably for longer than that. And that bodes well for drillers and oil service companies like OII.

Hornbeck Offshore Services' (HOS) stock has 'totally misbehaved' since the May 28, 2009 buy call at a price of $27.08, but I'm nevertheless reiterating the recommendation. Here's why:

The bullish trend in the oil sector should keep Hornbeck's growth story intact, even though day rates for 2009 offshore supply vessels will likely be 15-20% below 2008; in 2010, offshore rates should improve slightly. Meanwhile, capacity utilization should improve in 2010 from the current roughly 80% rate.

Today started out strong with a weaker dollar ahead of tomorrow's FOMC meeting. We have a slew of data coming out the rest of the week and tomorrow's commentary on securities purchases and liquidity programs should likely beat out the notion that rates are still staying at near-zero percent.

Here are today's unofficial closing bell levels:

Dow 9,829.27 +50.41 (0.52%)
S&P 500 1,071.63 +6.97 (0.65%)
Nasdaq 2,146.30 +8.26 (0.39%)

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"The oil-services sector remains my favorite long-term play in the energy industry," says sector specialist Elliott Gue. In The Energy Strategist, the advisor looks to industry-leader Schlumberger (NYSE: SLB).

Gue explains, "Oil services firms will benefit directly from the increasing technical complexity of oilfield development. International business is the primary driver for Schlumberger, which generated only 22% of its revenues from North America in 2008.

"The important question is, where do we sit in the cycle for international operations? In my view, the second half of 2010 will mark the beginning of a new uptrend.

"I have four Hurricane Season stock picks -- two bullish, two bearish -- to play this summer's potentially wild weather," says Sean Broderick in his Uncommon Wisdom advisory.

"Last year's stormy weather spawned 16 named storms, which was higher than the long-term average of about 10 tropical storms and six hurricanes per year in a typical Atlantic hurricane season.

"The major hurricane forecasters have now made their predictions, and it's for a 'moderate' hurricane season. That's good news for America's oil and gas industry.

It's an energy-intensive world, and even though the U.S. and global recessions have led to real declines in aggregate energy usage, don't look for that trend to continue.

Further, as Saudi Arabia reminds us, barring a breakthrough technology, fossil fuels will remain a major energy source for at least the next thirty to fifty years. In other words, the reign of oil has merely paused, not ended, which is why it's appropriate to review Schlumberger (NYSE: SLB).

Readers of this space know that one of the preferred sectors is oil/oil services, and an extension of the above concerns companies whose fate is linked directly to the demand for oil. And with the aforementioned in mind, Frontline Ltd. (NYSE: FRO) is worth a review.

Frontline is a shipping company that operates very large crude carriers (VLCC) and Suezmax tankers. The company transports primarily crude oil products, but also raw materials (coal, iron ore).

Readers of this space know that one of the preferred plays is oil/oil services. And why not? Demand for the world's most important commodity has merely paused with the global recession, and it has not been displaced.

True, alternate energy sources will increase in terms of the percentage of total energy consumed in the decades ahead, but oil has such a dominate share it will remain a major energy source for a long time, which is why contract driller Atwood Oceanics (NYSE: ATW) worth a review.

The Obama administration's promise to create a more self-reliant, energy-independent nation and the impact of efforts to first limit, then eliminate global warming from fossil fuels opens the door to alternative energy source development.

But, as Saudi Arabia reminds us, and the world, barring a breakthrough technology, fossil fuels will remain a major energy source for at least the next thirty to fifty years. In other words, oil is down now, but it's not out, and so Cameron International Corporation (NYSE: CAM) is worth a review.