"We sense a turn for the better coming in the oil sector," says Peter Way who tracks 'big money' investors for his Block Trader Oil & Gas Report. Here's his look at the "big block" traders.

"When we use the hedging analysis employed in our stock price forecasts, there are significant differences between some adjacent futures expirations. Here's the current picture:

"Front month (November) hedging suggests likely near-term higher prices. But the December contracts are likely to continue the past 3-month price decline – briefly.

"After that we could see crude rise over a few months into the $115-125 area or even higher, providing a bullish backdrop for most energy stocks. We sense a turn for the better coming in this sector.

"Several issues are selling at attractive prices now. Among major integrated producers, the standout prospect among the big oils is Petrochina (NYSE: PTR).

This post is part of a series in which TheStockAdvisors.com asked financial experts to name their top stock pick if McCain or if Obama wins the election.

"Go nuclear if McCain wins," says mutual fund and ETF expert Doug Fabian. Here, in his Successful Investing newsletter, the advisor looks at the Market Vectors Nuclear Energy (NYSE: NLR), an exchange-traded fund that focuses on the sector.

"What is likely to happen if McCain wins the White House? Well, based on what he has said so far in the campaign, I think we can make the following assumptions about the sectors most likely to thrive.

"When it comes to energy, we already have seen that McCain is a big fan of oil drilling. It is thus not a stretch to think that oil services and oil drilling firms are likely to thrive if the Republican takes power.

"McCain's other energy focus is nuclear, and that's good news for companies doing the yeomen work in the space. Once again, when it comes to getting invested in the best companies in a specific market sector, ETFs continue to be our best friends.

"The Market Vectors Nuclear Energy ETF is a fund designed to give investors exposure to the best companies in the nuclear energy sector.

"Prices for energy stocks, including the drillers, are bombed-out and should be aggressively accumulated now," says resource expert Eric Roseman.

Here, the editor of The Commodity Trend Alert explains, "The absolute worst thing we can do is sell now." Here's his outlook on energy and drilling and a trio of buys.

"The pain felt by commodity bulls should abate shortly; this mind-blowing expansion of credit will ultimately fuel inflation to much higher levels. Eventually, long-term interest rates will rise sharply in the United States as the government grows hungrier to finance its out-of-control spending habits.

"What we're seeing now is a market that has gone from being obsessed with inflation just two months ago to one now worried about rapid deflation or an environment of declining prices. Combined with bad economic news overseas, the U.S. dollar has seen a violent reversal exacerbating the plunge in raw materials. It's been a brutal sell-off and the worst decline I've seen since mid-2006.

"Atwood Oceanics Inc. (NYSE: ATW) is our bet on the exploding demand for offshore oil drilling rigs," says international investment expert Nick Vardy.

The editor of Global Bull Market Alert explains, "Although it's had a big run recently, the stock is as technically oversold as it was when global markets bottomed in mid-March." Here, he outlines why he believe the stock will perform strongly in the coming months.

"Atwood Oceanics Inc. engages in the offshore drilling of oil and gas wells worldwide. It operates eight offshore mobile drilling units located in six regions of the world, including offshore Southeast Asia, Africa, India, Australia, the Black Sea, and the Gulf of Mexico.

"Atwood is a leveraged play on the price of oil. Oil prices have now blown past the original estimates of major investment banks. Commodities guru Jim Rogers recently predicted that oil will soon hit $200.

"Amid record high oil prices and dwindling supplies on land, the Shells, Exxons and BPs of the world are having to venture into ever harsher and more remote environments offshore to replenish their oil reserves. That puts offshore oil drillers like Atwood Oceanics in the catbird seat.

Resource expert Curtis Hesler suggests Baker Hughes (NYSE: BHI) is an "excellent company that is on a strong growth path." In his Professional Timing Service he explains, "Everyone in the world is going to be scrambling to drill for oil, regardless of the U.S. economy.

"My futures work on crude is interesting here as we are about to leave the seasonal weak period and enter seasonal strength. My futures model has been on the sidelines in crude; but on February 11, it issued a buy at 92.72, March basis.

"It is all but impossible to drill for oil without Baker Hughes. Regardless of whether you think a recession has begun in the U.S., the truth is, there is a whole lot of drilling going on around the world. That trend will continue.

"Most recently, Kuwait announced they will be spending $51 billion over the next five years to upgrade their energy sector. They are going to be drilling a lot of wells. All of the other producing nations are going to do the same, and for one essential reason. They are all seeing their production levels beginning to decline.

"Due to a weak overall stock market and a 'disappointing fourth quarter earnings report,' Baker Hughes' price had been pushed back to solid long term support just under $65.00.

"This time, Baker reported $1.26 a share for the quarter while the analysts were looking for $1.28. Personally, I was not disappointed at all. The quarter's earnings were up a hefty 23%. If they do that every quarter, I am not going to worry about a two-cent disagreement between a bunch of pencil pushers.

"The stock's RSI and MACD patterns are deeply oversold now, and there have been very nice moves following readings in this area in the past. Come next fall, I think you will rue not having put a few bucks in Baker when the time was right. Today's bargains are in energy."

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

For the two latest buys in his Winning Stocks newsletter, editor Harry Domash looks towards oil. His first pick, deep sea drilling Transocean (NYSE: RIG) is chosen for growth, while his second play, crude tanker operator, Frontline (NYSE: FRO) is selected for income.

The advisor explains, ""In my view, Transocean dominates an industry sector that can only grow from here. The company is a global provider of deepwater oil and gas well drilling services. Its newest equipment is able to go 10,000 feet below the ocean surface to reach oil."

Already the biggest deepwater driller, he observes, Transocean has agreed to buy competitor GlobalSantaFe. The deal, he notes, is expected to close by the end of the year.

Meanwhile, since the consumption of crude oil is growing around 2% annually, and the easily accessible oil reserves are being depleted, the advisor concludes that demand for deepwater drilling services is growing rapidly.

Meanwhile, he adds, "Transocean reported June quarter earnings of $1.84 per share vs. year ago $0.42. Revenues rose 68% to $1.43 billion. Analysts expect Transocean's revenues to climb 50% this year to $5.9 billion. They forecast earnings for the year of $7.96 per share, up 166% over '06. He rates the stock a buy for those willing to hold the shares for 12 to 24 months.

In his Block Trader Oil & Gas, Peter Way follows the big hedge funds and market makers to find out what they are doing. Here's a look at his top oil plays.

He observes, "The hedgers at the NYMEX are protecting their crude oil positions in ways that indicate they see continuing upward pressure on prices."

Based on this hedging activity, he states, "The outlook for the next 12 expiration months that the by major players at the crude oil table suggest little lasting price weakness, and a general level prevailing above $70 over the remainder of the year."

What are the best stocks to buy to bet on the trend for firm oil prices? To decide, Peter Way looks at the buying patterns of market makers -- the big boys on the trading floor.

From their positions, he notes, "Among the large oil producers, China's CNOOC, Ltd. (NYSE: CEO), Canadian Natural Resources, Ltd. (NYSE: CNQ), and Suncor Energy (NYSE: SU) all combine historically strong odds and payoffs."

In addition, he notes positive market maker activity among oil exploration & production stocks. He explains, "With significant quantities of low-cost reserves already found, and prospects for additional finds tied up, these companies inevitably will get acquired by bigger producers whose customer demands exceed their yearly reserve findings."

For many, he says, it's just a matter of time. Notable stocks in the stock, he adds, are Holly Corp. (NYSE: HOC), Carrizo Oil & Gas (NASDAQ: CRZO), Range Resources (NYSE: RRC), Southwest Energy (NYSE: SWN), Ultra Petroleum (NYSE: UPL), and Talisman Energy (NYSE: TLM).

For more stock picks from the leading financial newsletter advisors, visit Steven Halpern's free daily website, TheStockAdvisors.com.

Shallow water contract driller Hercules Offshore (NASDAQ: HERO) is the latest addition to the speculative "Advantage Portfolio" developed by Elliott Gue for the Personal Finance newsletter.

The company operates primarily in the shallow waters of the Gulf of Mexico. Gue points out that in the shallow Gulf waters, the most common type of drilling rig is what's known as a jackup. These, he notes, consist of a platform attached to four or more legs that rest on the sea floor and are used to drill in water up to a few hundred feet deep.

Gue says, "Most oil and gas producers don't own their own rigs. Rather, these rigs are leased from contract drillers like Hercules for a fee known as a day-rate. Hercules currently owns nine jackup rigs and a fleet of boats used to maintain wells and platforms."

The company, he notes, is in the process of acquiring Todco, a firm with a fleet of 24 jackup rigs and 27 inland barge rigs used for even shallower water drilling. In the wake of this acquisition, Gue notes, Hercules will be a dominant contract driller in the shallow-water Gulf.