There's a big ballyhoo about oil these days. With the turmoil in the Middle East, especially in Libya, the price of West Texas Intermediate (WTI) crude oil is priced over $100 per barrel. Gasoline at the pump is almost $4.00 per gallon.

Why then talk about an oil glut? We should first look at where our oil is coming from. Believe it or not, Canada is the biggest exporter of oil to the U.S. Canada is sending so much oil to the U.S. that our pipelines and storage facilities can't handle it. Reuters reports that our key storage facilities at Cushing Oklahoma are filled to capacity and are not equipped to handle the oil flow.

"Energy Transfer Equity (NYSE: ETE), a major player in the midstream energy sector, is a cash-producing machine," says value investor Nathan Slaughter.

The editor of Half-Priced Stocks explains, "Even more promising, those who know the company best -- the CEO and one of its co-funders -- have been voting with their wallets lately." here's his review of the income holding.

"The company -- a master limited partnership (MLP) -- owns over 17,000 miles of natural gas pipelines in several states, including the largest network serving the prolific gas basins of Texas.

MLPs come in two classes: general partner and limited partner. The general partner (GP) typically handles all of the day-to-day operations and in return gets a cut of the distributions that are dished out to the limited partners (LP).

"In this case, the General Partner is Energy Transfer Equity, our recommendation, which should not be confused with the Liimted Partner -- Energy Transfer Partners (NYSE: ETP).

"Energy Transfer Equity owns all the General Partner interests -- as well as 62.5 million LP units (46%) of ETP. All of which is a convoluted way of saying that ETE unitholders can expect to be showered with cash.

Copano Energy (NASDAQ: CPNO) - Volatility Elevated into EPS & lower energy prices. CPNO is an energy company with natural gas gathering and intrastate transmission pipeline assets and natural gas processing facilities Oklahoma & Texas Gulf coast region. WTI Crude futures are down 3.56% to $72.79 according to Track Data. CPNO will announce EPS on 8/8. CPNO August option implied volatility of 41 is above its 12-week average of 20 according to Track Data, suggesting larger risk.

Enterprise Products (NYSE: EPD) - Implied volatility of 40 above 26-week average of 17. EPD transports natural gas, NGL's and crude oil through more than 35,000 miles of onshore and offshore pipelines. EPD September put implied volatility of 40 is above its 26-week average of 17 according to Track Data, suggesting larger risk.

Kinder Morgan Energy Partners (NYSE: KMP) - September volatility Elevated. KMP owns or operates 26,000 miles of pipelines and approximately 150 terminals. KMP September option implied volatility of 50 is above its 26-week average of 14 according to Track Data, suggesting larger risk.

Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.