"Ensco PLC (ESV), a London-based firm which provides offshore drilling services, operates eight ultra-deepwater semi-submersible rigs, as well as 40 premium jackup rigs," notes John Reese.

The editor of Validea explains, "The stock, which has a $7.7 billion market cap, gets strong interest from the models I base on the writings of value investor Benjamin Graham. Indeed, the stock earns a 100% rating under my Ben Graham model.

"I'm split on the energy sector. On the one hand, I have no doubt that the price of oil has been held artificially high by paper trading rather than demand," says Jack Adamo.

The editor of Insiders Plus continues, "On the other hand, the oil spill in the Gulf Of Mexico has knocked stock prices for a loop; there are a number of stocks that have fallen 30% to 50%, primarily due to that factor.

"Two idea that we have decided to add to the income section of our model portfolio re Diamond Offshore Drilling (DO) and France-based Total SA (TOT).

In his Validea newsletter, John Reese assesses stocks using specialized screens based on the stated criteria of legendary stock market investors.

One such screen -- which has resulted in his best-performing model portfolio -- is based on the value-oriented investment strategy of Benjamin Graham.

Here, he looks at oil services firm Tidewater (TDW), which scores 100% on his Graham-style model.

"Despite coming close to bankruptcy in 2002, Williams Co. (NYSE: WMB) has some of the premier assets in each of its business segments: exploration & production, mid-stream and pipelines," says turnaround expert George Putnam.

In his The Turnaround Letter, he explains, "The company now has the financial strength not only to survive the current downturn but to grow and prosper."

"Begun in 1908 as a pipeline construction company, Williams is now a major, integrated natural gas company; it produces, gathers, processes and transports natural gas throughout the United States.

"National Oilwell Varco (NYSE: NOV), a buy in our 'Wildcatters portfolio,' will see an outsized benefit from improving conditions in the global oil market," says Elliott Gue in The Energy Strategist.

"Rig technology is the crown jewel of National Oilwell's business; the unit builds key equipment used on land and offshore drilling rigs.

"The unit is currently benefiting from the boom in deepwater drilling activity -- one of the only drilling markets that continue to see growth.

"Equipment used on deepwater drilling rigs is far more complex and expensive than that used on land or shallow-water rigs. As a result, selling equipment into the deepwater market carries far higher profit margins for National.

"Over the next five years the energy patch should offer some of the best investments around, and one standout is Schlumberger (NYSE: SLB)," says Stephen Leeb in The Complete Investor.

"Schlumberger, by a wide margin, is the best and most dominant. Its services range from well testing to pressure pumping to seismic testing, and it's No. 1 in virtually every area it occupies.

"Some of its operations, especially those that maintain the health of existing wells, are highly recession-resistant.

Energy sector specialist Elliott Gue sees opportunity in Transocean (NYSE: RIG), a leadin player in the deepwater drilling area. Here's the latest advice from The Energy Strategist.

"The market for deepwater rigs, however, has remained resilient and one drilling with direct leverage to deepwater rigs is US giant, Transocean, the world's largest offshore drilling company, with 136 rigs as well as ten under construction.

"Roughly 68 of those rigs are 'semisubmersibles,' and 39 are ultra-deepwater or deepwater rigs capable of drilling many of the complex plays being targeted around the world today.

"Many experts believe that oil prices are at unsustainably low prices now, and they expect a sharp rise in the commodity price as supply and demand come back into line again," says turnaround expert George Putnam.

In The Turnaround Letter, he suggests, "If oil does begin to rise again, the oilfield service stocks could rebound sharply." Here, he takes a look at large cap plays on a rebound within the oilfield services sector.

"We all know that oil prices have fallen dramatically from their highs in the summer of 2008. But different types of oil-related stocks have reacted quite differently to the price change in the underlying commodity.

"For example, while oil itself has dropped nearly 70% from its 12-month high, the stock of the largest integrated oil company, Exxon-Mobil (NYSE: XOM), is down only 26%, less than the stock market as a whole.

"What's going on with Transocean (NYSE RIG), the owner of the world's biggest fleet of offshore drilling rigs?" asks Richard Moroney, a specialist in blue chip stocks.

In his Dow Theory Forecasts, he explains, "The shares plunged 67% - nearly $100 a share - in 2008, and we can't blame the usual suspects." Here, he explains why he continues to rate thes stock a "Focus List Buy" in his blue chip-focused advisory service.

"Poor operating performance? Wall Street expects 2008 per-share profits of $14.34, up 68%. Shaky future? Transocean is expected to grow per-share earnings 4% in 2009 and 10% annually over the next five years.

"Fundamentals eroding? Not at all. The balance sheet is sturdy and the backlog stout at $41 billion, or three times expected 2009 revenue. Rather, we see two chief contributors to Transocean's steep slide, and neither should jeopardize long-term prospects.

This post is part of a special annual report -- Top Stock Picks '09 -- in which TheStockAdvisors.com asked 75 leading newsletter advisors to select their favorite investment for the new year.

Transocean (NYSE: RIG), the world's largest offshore drilling contractor, "is our favorite stock idea for 2009," says Dirk van Dijk, CFA and director of research, Zacks Investment Research.

"Transocean operates, owns or has partial ownership interests in 137 mobile offshore drilling rigs.

"Its drilling fleet consists of 39 high-specification deepwater floaters, 29 mid-water floaters, 10 high specification jack-ups, 55 standard jack-ups, and 4 other rigs. Additionally, Transocean had 10 ultra-deepwater floaters under construction or contracted for construction.

"With a backlog of nearly $41 billion, RIG offers an unparalleled level of earnings and cash flow visibility. The positive momentum should continue due to the favorable deepwater drilling outlook that should support demand for the company's products.

"Put simply, the only place the world is likely to find the very large oil deposits it needs to offset declining production in existing fields is in very deep water. There are very few rigs capable of drilling in deep water, and RIG owns most of them.

"Valuations for even the best-placed, most well-established companies in the energy space are sitting at levels unseen since the late 1990s when oil prices collapsed to around $10 per barrel," says energy sector specialist Elliott Gue.

Here, the editor of The Energy Strategist looks at Schlumberger (NYSE: SLB), noting, "The firm active in just about every imaginable market and I regard the company as a top-notch indicator of ongoing trends in the oil services business."

"It's clear that there's been some slowing in demand, and the credit crunch has had an impact on the fundamental business. But the reaction in the stock market over the past three months goes well beyond even a worst-case scenario.

"Bottom line: Many energy-related stocks are pricing in a severe recession and recent action in the broader markets is reminiscent of sentiment characteristically seen near market lows. The short-term outlook for the energy patch is much better now than it was during the bear market in 1998 and 2002.

"I regard Schlumberger as a top-notch indicator of ongoing trends in the oil services business and, more broadly, international oil and gas drilling activity. I always pay close attention to what Schlumberger has to say in its conference calls and, as usual, this quarter's call was instructive.

"Crude oil remains deeply oversold on an intermediate-term basis, suggesting a rally sometime in the early fall," says Dennis Slothower.

The editor of Stealth Stocks looks to Petroleo Brasileiro SA (NYSE: PBR) as his latest "stock of the month." Here's his review of the Brazilian firm that is now the world's 8th-largest oil company.

"The founding of Petrobras was authorized in October 1953, with the objective of executing, on behalf of the federal government, the activities of the oil sector in Brazil.

"Over the past five decades or so, the company has become the country's leader in the distribution of oil products, an activity not covered by the government monopoly, and today it is internationally acknowledged as the eighth-largest oil company in the world.

"Leading the sector in the development of one of the most advanced deepwater and ultra-deepwater technologies for oil production, PBR was twice (in 1992 and 2001) awarded the Offshore Technology Company (OTC) prize, the most important award in the sector.

"We are moving headlong into oil," notes John Reese, who analyzes stocks based on the criteria used by "legendary" investors such as Buffett, Graham and Lynch.

In his Validea newsletter, he says, "My fundamental models indicate that the oil industry is where the best values in the market are." Here's a look at W&T Offshore (NYSE: WTI), which is based on the criteria used by contrarian David Dreman.

"The economy and stock market have gone through a legitimate crisis because of the credit woes, and it takes time for something like that to work itself out.

"But the important thing to remember is that we've been through financial crises before -- even bad-debt financial crises like this one -- and the market has always stabilized and then pushed higher.

"And history has shown that those who can stick with the stock market through down times like these will be rewarded.

"David Dreman -- one of the gurus I base my strategies on -- notes in his recent Forbes column, 'If you pack up now, chances are you'll miss a good part of the next bull market. A large part of the gains are always made in the first few months of one, when market-timing investors are still on the sidelines.'

"Our 'Forecasts Focus List' contains only two energy stocks, both of which are in the oil services sector: Oceaneering International (NYSE: OII) and Transocean (NYSE: RIG)," says blue chip advisor Richard Moroney.

The editor of Dow Theory Forecasts says, "While stocks in the equipment and services group tend to move with oil prices in the near term, their profits depend more on exploration spending than on commodity prices."

"Concerns about slowing demand for crude oil and re?ned products both in the U.S. and overseas have many investors worried. But investors in the equipment and services group should not panic.

"Most producers continue to spend aggressively. And U.S. crude-oil inventories remain well below the average for this time of year, with fewer than 20 days of supply in storage.

"Demand for offshore-drilling services remains strong, giving Transocean excellent growth potential. Consensus estimates project per-share profits will rise 69% in 2008 and 15% in 2009. Transocean, the world's largest offshore drilling contractor, operates in every major drilling region.

"A combination of tight global rig supplies and the ongoing discovery of new offshore reserves have driven rig lease rates higher and kept Transocean's fleet busy. The company's largest, most expensive rigs are 95% sold out for 2009, and the backlog is growing.

"Mainland Resources (NASDAQ: MNLU), a small natural gas play, could be a giant in the space in a short period of time," says Charles Payne.

In his WStreet Market Commentary, he explains, " The company involved in the super exciting Haynesville shale region, which could be one of the largest domestic on shore natural gas fields ever."

"The stock has been coming on lately as more investors learn about the company's potential in the Haynesville shale region.

"Discovered in March of this year, the Haynesville field -- according to Energy and Capital -- could conservatively hold 168 trillion cubic feet of natural gas. Chesapeake Energy (NYSE: CHK) has declared Haynesville the most important find in its 19 year history.

"There was always a notion that a big find was in the space that the company currently owns (2,700 acres), but when it was first explored back in the 1950 crude oil prices were much lower and there was no technology to get to the natural gas.