Readers of this space know that the investment bias is toward large-cap companies with demonstrated business models and who have a competitive advantage in established markets, preferably with a favorable global trend as a support. And with the above in mind, El Paso Corp. is worth a review.

El Paso Corp. (NYSE: EP) operates the largest natural gas transportation system in the United States, with a host of attractive, lateral business lines including natural gas production, gas storage, power generation, and trading.

El Paso is in a sweet spot, of sorts, concerning energy. Record-high oil prices -- plus the unknown regarding how high the price of oil will rise ($150?, $175?, $200?) -- means that a good number of businesses and residences will convert to natural gas, where possible, which, of course, benefits transmitters and producers of natural gas. The U.S has experienced two other periods with mass defections from oil to natural gas, during the two previous oil shocks, in 1973-74 and 1979-80.

"Shipping stocks can be a good port in a financial storm," says Ivan Martchev in Leeb's Income Performance Letter. Here, the advisor looks at Teekay LNG Partners (NYSE: TGP).

"Some shippers take their chances in the spot market; these should be avoided. Teekay, however, offers a high yield and lower earnings volatility due to its lower-than-average exposure to the spot market.

"Teekay is well exposed to the growing market for liquidified natural gas (LNG). The growth profile of the LNG market is compelling. The vast majority of the world's natural gas reserves are stranded in Eurasia and the Middle East, while consumption is greatest in the U.S., Far East and Europe.

"Imports of LNG to the U.S., for example, are expected to increase by more than 400%, by some estimates, between now and 2012. Clearly, there is wide-eyed potential growth in the LNG market.

"There are also high barriers to entry in its transportation since it requires huge investments in loading and reliquification terminals for highly specialized ships. Given the support of its parent company -- Teekay Corp. -- Teekay LNG Partners is a force far larger than its relatively small size would have your believe at first blush.

"The company's growth is virtually assured for years to come due to the imbalance in the geographic distribution of reserves and consumers of natural gas. Teekay LNG Partners, yielding 7.7%, is a publicly-traded master limited partnership, which means you should look into the peculiarities of tax treatment of distributions."

Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.

An economic slowdown in the United States and other industrial nations will continue to damper oil consumption growth, the International Energy Agency announced Tuesday, as it again trimmed its global oil demand estimate for 2008.

The IEA lowered its forecast for 2008 global oil demand by another 390,000 barrels to 86.8 million barrels per day from about 87.2 million barrels, the association announced in its latest monthly report. At the same time, the IEA revised its analysis of 2007 oil usage, saying the world used about 85.8 million barrels per day last year.

Oil traded $1.50 higher to $125.70 per barrel in Tuesday afternoon trading. Oil hit an all-time high of $126.98 in electronic trading earlier in the day and has risen about 100% in the past 12 months.

Readers of this space know that one of the preferred sectors has been the oil/oil services sector. Further, with oil now well above $110 per barrel, one may think that all of the affordable oil plays have been bid up. Indeed, most have, but not Chevron.

Chevron Corporation (NYSE: CVX) is the third-largest integrated oil company in the United States.

Chevron's organic reserve replacement, excluding Canadian oil sands, is sub-par, but just about every other dimension of CVX's operation rates good to strong.

Chevron's most attractive dimension? CVX has the equivalent of 'the facilities of significance' in an oil-challenged world, and especially in a gasoline-challenged United States: 22 fuel refineries, to go along with 2 asphalt plants, for a total refining capacity of 2.21 million barrels per day. Almost half of that fuel refining is based in the United States.

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).

Global oil demand, despite oil being more than $100 per barrel, remains solid. Further, there are increasing signs that the aforementioned international demand is likely to keep oil's price at lofty levels, even with a U.S. recession. That's bad news if you buy gasoline or oil, but good news if you own shares of Transocean.

Transocean (NYSE: RIG) offers deepwater drilling services in the world's major offshore oil-producing regions, including Africa, Asia, Brazil, Canada, India, Middle East, Gulf of Mexico, and the North Sea.

In general, analysts see RIG generating an 18%-25% total return on equity for 2008-2009, with an upside possible, given the company's strong position in deepwater drilling, which offers a higher return potential than shallow water drilling. And currently, it looks like a 2008 revenue upside is in sight for Transocean,

Further, given a capacity shortage sector-wide for deepwater rigs, dayrates have increased substantially, and look for RIG's pricing power to continue into 2009 (RIG's dayrate for 2009 is now $600,000 for high-spec, ultra-deepwater rigs). Prospects for Transocean's jackup rig market are not as bright, with a possible oversupply in early 2009. The Reuters F2008/F2009 EPS consensus estimates for are $14.15/$16.82.

Readers of this space know that one of my preferred sectors has been in oil and oil services.

Further, with oil now well above $110 per barrel, one may think that all of the attractive oil plays have been bid up. Indeed, most have, but one that may represent an opportunity, for high-risk investors only, is TXCO Resources.

TXCO Resources (NASDAQ: TXCO) acquires, explores, develops, and produces oil and gas properties. The company's primary focus is on developing oil and gas reserves on properties located in Texas. The company's reserve mix is 54% oil and 46% natural gas.

In general, analysts expect TXCO's revenue to increase by better than 20% in F2008 after an impressive 30% gain in F2007.

Further, analysts also like the fact that TXCO's proved reserves increased substantially, via drilling and acquisition, to 91.8 billion CFE at the end of F2007, from 41.4 billion CFE at the end of F2006. The Reuters F2008/F2009 EPS consensus estimates for TXCO are 57 cents / 75 cents.

Last Friday, April 18, Precision Drilling Services TR (NYSE: PDS), the Canadian Trust, announced that the Board of Trustees has approved a cash distribution for the month of April 2008 of $0.13 per trust unit of Precision. The distribution will be payable on May 15, 2008 to unit holders of record on April 30, 2008.

The current dividend yield of 5.8% remains very generous and far above most other stocks in the sector. After some of my high dividend stock recommendations either under performed or simply cut their distribution, it is reassuring to see that PDS not only is maintaining its dividend, but in this particular case continues to pay out monthly, allowing for better compounding of the yield.

The stock closed today at $27.15, up 75.5% from $15.47 when I recommended the stock three months ago. If you got into the stock back then you would still be receiving over a 10% yield. Last year I had several high flyers but not all of them stayed up so I am watching Precision closely for signs of weakness or changes in the business.

American citizens and corporations, already stung by the more than 200% increase in oil and gasoline prices since 1999, most likely will be confronted with another energy shock in the months and quarters ahead: natural gas.

U.S. natural gas prices have risen an astounding 93% since August 2007 -- this despite a mild winter in much of the nation -- as rising demand from energy-hungry Asian buyers, such as South Korea and Japan, have forced up natural gas' price, The Wall Street Journal reported Friday. (Subscription required.)

Natural gas, which traded Friday morning in the United States at $10.22 per million BTUs, heats 50% of U.S. homes, generates 20% of the nation's electricity, and is intrinsic to making everything from fertilizer to plastic bags.

International natural gas demand rises

Further, with solid international demand, and a U.S. price that's roughly one-half the global price, many analysts argue U.S. natural gas prices are likely to increase substantially, moving forward. That would create another "core inflation" price accelerator to a U.S. economy already experiencing rising core/retail inflation from oil's enormous rise from $25 per barrel in 1999 to more than $110 today.

Imagine a large recession in which one of the key energy components almost doubles in price. The tab for natural gas is up by almost double since last summer. That is the same natural gas which most people use to heat their homes. Being cold is not a lot of fun.

According to The Wall Street Journal, "Prices in the U.S. have risen 93% since late August as power-hungry nations like South Korea and Japan compete in a global natural-gas market."

Who says inflation is not a major threat to the US economy? Add to the natural gas spike the rising cost of oil which has pushed gasoline to all-time highs. Add to that increasing food prices due to the bump up in the price of grains such as wheat and corn. Those commodities are being used to product the alternate energy source ethanol.

The picture complicates the job that the Fed and Treasury have to do. Lowering interest rates often increases the ability of businesses and consumers to spend. That, in turn, pushes inflation higher. Not lowering rates could exacerbate the credit crisis and lead to more home and credit card defaults.

There is one silver lining to the cloud. Banks are not passing lower rates on to customers. They are hording the cash that they get from the Fed. It is an ugly reality, but consumers and small businesses do not have access to the capital which they would need to start spending money again.

None of that solves the natural gas problem per se, but it could mean that people will cut back a bit on how warm they keep their homes. That, at least, would be a start.

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

Readers of this space know that one of the preferred sectors is the oil/oil services sector, and with the above in mind, Canadian Natural Resources is worth an evaluation.

Canadian Natural Resource Ltd. (NYSE: CNQ) is a Canada-based exploration and production company that explores for, develops, produces, markets and sells crude oil, natural gas liquids and natural gas.

Analysts like CNQ projected double-digit revenue for FY 2009, following a solid performance in FY 2008. Further, analysts still see impressive margins from CNQ's Canadian oil sands operations, despite the province of Alberta's oil/gas royalties increases. CNQ is also one of the largest undeveloped land holders in the Western Canadian Sedimentary Basin, with nearly 12.8 million acres. The company also has proved reserves of 1.3 billion barrels of oil and 3.8 trillion cubic feet of natural gas.

In this investing environment, it's best to consider a defensive play or two, and while the oil/gas sector is not a defensive, strictly speaking, XTO Energy comes close to fitting the bill, and is worth an evaluation.

XTO Energy (NYSE: XTO) buys primarily demonstrated oil/gas properties -- areas where the commodities are 'known,' if you will - - then produces and markets natural gas, natural gas liquids, and crude oil, primarily.

XTO owns interests in more than 18,800 wells and operates gas gathering systems in Arkansas, Oklahoma, and Texas.

Readers of this space know that one of the preferred sectors is oil and oil services. Given oil's importance in a growing global economy, oil and oil services companies are likely to continue to experience steady demand for their services/products. And with above in mind, ConocoPhilips is worth a review.

ConocoPhilips (NYSE: COP) is the third largest oil company in the United States. With proven reserves of 35 billion barrels of oil, COP has the oil assets, upstream production and -- equally important -- downstream refining capacity to benefit from both oil's current high price and its likely, continued ascent, long-term.

Further, COP's 12 U.S. refineries represent the most compelling operations positive for the next 3-5 years ahead. In addition, COP has a $3 billion plan in place to expand the company's ability to refine heavy sour crude oils.

With the markets still in a choppy/consolidation mode (or perhaps worse), it's best to consider including a few defensive stocks in your portfolio, and with the above in mind Duke Energy is worth an evaluation.

If you're looking for a balanced, longer-term utilities play, consider Duke Energy (NYSE: DUK).

Duke is that rare type of utility that offers investors an ample amount of safety, an adequate dividend, and the potential for capital gain upside via growth.

In general, analysts expect DUK to register solid revenue results in 2008-2009. Duke has exited several higher-risk businesses, and what's left is impressive, particularly in a choppy, uncertain stock environment: 3.9 million utilities customers in the South and Midwest, 8,700 MW of unregulated generating capacity in the U.S., 4,200 MW of generating capacity in Latin America, and 500,000 natural gas customers. Further, given current population projections in the South, the long-term trends look good for a considerable portion of Duke's operations.

Other positives: Look for Duke to better-utilize its Midwest gas-fired plants and maintain cost-control discipline, in the years ahead. Finally, DUK's 88 cent annual dividend adds to the mix. The Reuters F2008/F2009 EPS consensus estimates for DUK are $1.27/$1.35.

The risks? Duke's revenue could be hurt if a generally-favorable regulatory stance in its regions changes. An unusually cool summer could also keep revenue below analysts' expectations. Don't look for a major upside revenue surprise with Duke, but everything else, from a utilities investment standpoint, lines up.

The First Call mean rating for DUK is: Hold. [18 firms.] Mean 2008 target: $20 [high: $23, low: $18.]

Stock Analysis: Duke Energy is a moderate-risk stock not suitable for low-risk investors. Consider buying Duke's shares if your portfolio does not contain a utilities stock. Investors with an investment horizon longer than 2 years should be rewarded from DUK's shares. Sell / Stop Loss if you were to purchase shares in this company: $13.

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.

Given oil's importance in a growing global economy, natural gas and oil companies are likely to continue to experience steady demand for their services/products, and a provider worth a review is Cimarex Energy.

Cimarex Energy (NYSE: XEC) is an independent oil and gas exploration and production company.

In general, analysts see 2-5% production growth in F2008, including impressive drilling activity in the Permian Basin, Mid-Continent Granite Wash, and Gulf Coast Yegua/Cook Mountain regions. The company has proved reserves of more than 1.4 trillion cubic feet of natural gas equivalent.

Meanwhile, given high service costs, XEC is expected to be more selective regarding projects, favoring those projects that meet reservoir size requirements and that do not exceed project cost limits. The Reuters F2008/F2009 EPS consensus estimates for XEC are $4.89/$4.71

The risks? A substantial, sustained decline in oil / natural gas prices would hurt XEC's results. Production underperformance or severe weather also would hurt the company's results.

The First Call mean rating for XEC is: Hold. [6 firms.] Mean 2008 target: $58. [high: $68, low: $50.]

Stock Analysis: Cimarex Energy is a moderate-risk stock not suitable for low-risk investors. Investors with an investment horizon longer than 2 years should be rewarded from XEC's shares. Note: More-cautious investors may consider waiting until XEC pulls-back to $51, but keep in mind that XEC may not retreat to that level. Sell / Stop Loss if you were to purchase shares in this company: $36.

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.