It's time to start drilling for oil and natural gas offshore on the east and west coasts. We are wasting our time and our money, and risking our future by not doing so. The energy needs of the United States have made oil our number one import and the biggest factor in our imbalance of trade.

It is not just that oil holds us hostage to the rest of the world. This imbalance of trade means we cannot support ourselves and must borrow from others to get by, and I, for one, have a very hard time with that notion. I prefer independence -- remember that? I think it was an important concept in our founding, way back when.

The imbalance in trade is a mortgage against the future of our children and it is getting worse year after year. The money often goes to foreign governments whose interests are not aligned with ours and they hold us politically and economically captive. Nothing is more shameful than President Bush pleading with Saudi Monarchs to pump more oil.

It's a reality of the era of elevated energy prices that the oil/natural gas services sector is likely to remain strong for the foreseeable future, baring the discovery of a cheap, widely-available alternative energy. And among oil/natural gas services companies, Transocean (NYSE: RIG) is a standout.

Transocean 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 a 18%-25% total return on equity for 2007-2009, 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 upside is in sight for Transocean: of the company's 82 offshore rigs, only seven have not been committed for 2008. Further, given a capacity shortage sector-wide, dayrates have increase substantially, and look for RIG's pricing power to continue past 2009. (RIG's dayrate for 2006 increased 35% to $142,000 and its rig utilization rate improved 5% in 2006.) The Reuters F2007/F2008 EPS consensus estimates for RIG are $8.01/$11.32.

The risks? RIG's dayrate increases could slow if major oil companies begin to reduce exploration budgets. A U.S. recession could also substantially decease home building, which could lower the demand for oil.

The First Call mean rating for RIG is: Buy. [34 firms.] Mean 2007 target: $131.00. [high: $168, low: $89.] Transocean's share were down $2.04 to $127.60 in Wednesday afternoon trading, but view that dip as a buying opportunity, as it's reasonable to assume that the industrialized nations will need oil services companies for a few years, to say the least.

Stock Analysis: Transocean is a moderate-risk stock not suitable for low-risk investors. Investors with an investment horizon longer than 1 year should be rewarded from RIG's shares. Sell / Stop Loss: $84.

Leo Fasciocco is a technical specialist who focuses on finding breakout buys -- stocks that have broken out from their trading bases and are poised, in his view, to move higher.

In his Ticker Tape Digest he has isolated two intriguing energy plays: Diamond Offshore Drilling Inc. (NYSE: DO) searches for energy below the sea, while solar firm Suntech Power Holdings Co. (NYSE: STP) looks skyward.

The advisor explains, "Diamond Offshore has 30 semisubmersibles, 13 jack-up rigs (mobile drilling platforms), and one drillship. They operate around the world. The company contracts with major oil and gas companies.

"DO's profit outlook is excellent and should be the driver to send the stock higher. Technically, the stock's long-term chart shows a powerful bull market. It has soared from 20 to 113 the past three years, riding the rising price of crude oil.