The Organization of Petroleum Exporting Countries may reduce production when it meets next month as part of a strategy to try to keep the price of oil above $80 per barrel, Bloomberg News reported Friday.

For long-term plays, the preferred investment is a company with a demonstrated business model (10 years), in an established market, with an average total annual return on equity of 20% during that span.

To be sure, First Solar (NYSE: FSLR) does not fit that profile, but it's worth a review, given both macro fundamentals and the company's outlook. Note: Underscoring, this is a high-risk stock.

First Solar uses an advanced, thin-film technology that uses cadmium telluride semiconductor material to convert sunlight into electricity. With a global polycrystalline silicon shortage holding back some producers of solar cells, First Solar's glass as substrate, coated with cadmium telluride can march ahead, while others await their raw materials.

By now, many investors/readers have heard the statistic: if ExxonMobil's 2007 revenue of $390.2 billion were listed as GDP, it would rank as the 31st largest nation in the world, in purchasing power parity terms.

It's easy to criticize Exxon (NYSE: XOM). When you're the world's largest integrated oil company in a world that's increasingly seeing both the financial and environmental costs of oil, it's hard not to be criticized. Moreover, Exxon, like other oil companies, may face additional operational constraints regarding fossil fuels, moving forward -- particularly if the Democratic party wins the White House in 2008. Further, it's not entirely clear that the company will remain a leading provider of energy when that energy becomes primarily renewable and alternative.

The odds of a 2007 Energy Bill passing the Democratic Party-led U.S. Congress, with President Bush's blessing, "Are still likely," according to a Washington-based, public policy lobbyist with knowledge of the matter.

"The bill will need a few revisions, but I'd say it's a 70/30 go, in favor of the bill being signed by the president," the lobbyist told Bloggingstocks Tuesday, on condition he not be identified by name.

The lobbyist, who represents primarily Democratic Party-based constituencies, said the the bill's renewable energy component and potential tax increases remain the hangups in the bill.

Modification likely

"More than likely President Bush will get the renewable energy component modified, but the Democrats may gain extra footing with better solar/wind energy credits," he said.

The bill current would require utilities to generate more power from renewable energy. Lawmakers from the Southeast U.S. have said they're concerned that utilities in their states will not be able to meet the requirement, due to a lack of wind power, The Wall Street Journal reported.

In another sign that Google (NASDAQ: GOOG) wants to be in businesses well beyond its key search operations, the company has announced another initiative. It is not a phone, or even bidding on wireless spectrum

Google is going into the renewable energy business. The company announced "a new strategic initiative to develop electricity from renewable energy sources that will be cheaper than electricity produced from coal."

Weird? Or, cool? According to Google, in 2008 Google expects to spend tens of millions on research and development and related investments in renewable energy. As part of its capital planning process, the company also anticipates investing hundreds of millions of dollars in breakthrough renewable energy projects that generate positive returns.

Google does use a lot of electricity to run its server farms, but enough to justify the huge investment in technology that may not work? It's probably a bad idea.

Part of the concern about the current Google share price is that, as the company evolves beyond its core skills, returns to shareholders could drop. Renewable energy falls into that category.

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

The "Totally Informal Economics Roundtable" (TIER) met this week. For those unfamiliar, the Roundtable achieves a quorum whenever yours truly and my three astute economist friends from graduate school convene to discuss matters economic...or to celebrate the birthday of one our school-age children.

This week's the topic was OPIC. That's OPIC, not OPEC.

Most readers/investors know about OPEC, the Organization of Petroleum Exporting Countries.

If the industrialized - - and the industrializing - - world needs a wake-up call regarding the development of alternate and renewable energy sources, the nations need look no further than the International Energy Agency's research.

IEA projects that between now and 2015, the world will need an additional 37.5 million barrels per day of oil to meet rising demand. Currently, the world use about 84 million barrels of oil per day. [Oil closed Thursday down 91 cents to $95.46. A convergence of events, including strong global economic growth and geopolitical concerns, has pushed oil's price up more than 135% in three years; traders see oil testing the $100 per barrel mark in the weeks ahead.]

And here's the riveting statistic from the IEA: current oil production development plans will add only about 25 million barrels per day by 2015.

And what about that 12.5-million barrel gap? The gap, the IEA said, must be made up through further investment or easing of demand.

If the gap is not filled, a supply shortfall will result, the IEA said. "'A supply-side crunch in the period to 2015, involving an abrupt escalation in oil prices, cannot be ruled out," the agency said.

Oil Analysis: While oil consumption increases are expected in every region in the world and by dozens of nations, the importance of the United States and China in marshaling any energy coalition cannot be underscored enough. Each is the primary engine of growth in its hemisphere. Each has the private, public, and university-based economies of scale necessary to both implement conservation measures and development new energy sources - - practices that smaller nations in each region would undoubtedly mirror. Finally, each - - by virtue of the sheer size of their consumer bases - - can decisively "move the needle" toward increased energy efficiency and, along with it, toward less CO2 in the atmosphere, in the years and decades ahead.

Oil at $120 per barrel?

Once unfathomable, it's now possible, and in the near future -- as in the summer 2008 -- if current trends continue.

Economist H. David Wang told BloggingStocks that a convergence of "bullish events" could take oil "well over the century mark next year." Oil traded early Thursday around $95.50 per barrel.

"We know about emerging market demand, and the various political issues which pose a threat to supply, but now there's concern that OPEC won't strive to increase production because of the falling dollar, because most oil transactions are priced in dollars," Wang said. "That's a concern. That's exactly what the market does not need at this time. Up to now the market has factored-in OPEC cooperation. But now we hear OPEC talking about a lack of a need to raise production. If OPEC doesn't raise production, we're looking at $110 or even $120 per barrel oil by the summer of 2008."

With the markets' choppy/consolidation pattern continuing, it's best to consider a defensive stock or two for your portfolio, and Archer Daniels Midland Company (NYSE: ADM).

The argument here is not that the biofuel trend is over; hardly. However, the frenzy that accompanied the financial world's realization that biofuel could represent a suitable alternate energy form, for some energy users, appears to tapering.

Biofuel interest remains high, and ADM is likely to benefit from wider and wider use these fuels. Most analysts see accelerating annual earnings growth on strong corn and soybean demand, with pricing power. Further, it's worth underscoring in these high-energy-cost times that ADM is foremost a large, vertically-integrated, food commodity company (wheat, corn, soybeans), and food rarely goes out of style. The Reuters F2008/F2009 EPS consensus estimates for ADM are $2.58/$2.97.

Note: Technical analysis agnostics stop reading here; all others continue.]

Technically, ADM's chart looks adequate. A base appears to be in place in the $32 range, and the stock has moved back above its 50-day and 200-day moving averages. Further, ADM's low p/e of 11 also reduces the stock's risk/return ratio.

Stock Analysis: Archer Daniels Midland is a moderate-risk stock not suitable for low-risk investors. Investors with an investment horizon longer than 2 years should be rewarded from ADM's shares. Sell / Stop Loss: $24.

Visit AOL Money & Finance for more earnings coverage

It doesn't take a genius to realize that the time may well be here to start investing in alternative energy sources. Solar energy, the cleanest and most renewable source of electrical power, has long been thought of as a bit of a pipe dream -- good in principle but not as easy to put into practice. But SunPower Corporation (NASDAQ: SPWR), the Silicon Valley-based manufacturer of solar electrical systems for homes and businesses, shows us there might be something new under the sun.

SunPower's 15 years of research and development have put it at the forefront of its field in both form and function: Its innovative technologies generate up to 50% more power than conventional solar energy systems, and its sleek black panels look so good they now grace the roof of the new Shiseido factory in New Jersey. With an exceptional product and lower overhead than its competitors due to its outsourced production facilities in Southeast Asia, SunPower looks to be able to shine brightly among its bigger competitors like Sharp or Nanosolar.

Clearly, SunPower is doing something right. Its recently-announced third quarter earnings show that revenue for the company is up 34% this quarter -- and over 250% from last year. And, if the company's estimates are to be believed, next year looks to be even brighter, with new product lines and new facility contracts on the horizon.

In the past, when I have written about oil prices, at least once a week I get a comment that we should start to put heavier taxes on oil companies... well, those of you that are of that belief will be delighted to hear that over the weekend Congress decided to do just that!

On Saturday the House of Representatives approved an additional $16 billion in taxes to be imposed on big oil, while at the same time giving billions of dollars in breaks to companies engaged in renewable energy and conservation efforts. The House hopes that passing this legislation will show that it is "turning to the future", but not everyone is pleased to see this pass.

Many Republicans (not surprisingly) were opposed to the passing of these new taxes. They claim that the advocates for the new taxes are not taking into consideration America's need to increase its output of domestic oil, natural gas and coal.

In an attempt to get more interest in the use of renewable energy, the House also passed a bill that will require any investor-owned electric utilities company to generate 15 percent of its electricity from renewable energy. Not all electric companies were in favor of this action, stating that it would result in increased prices for consumers that live in areas that do not have abundant wind energy (which is currently the preferred method for renewable energy). Opponents to this argue insist that this will not be the case, and instead we will see an increase in investments in these renewable energy supplies.

Massachusetts energy company NSTAR (NYSE: NST) recently reported solid earnings for 1Q 2007. NSTAR has received widespread recognition for its innovative programs to help customers become aware of and reduce their energy usage through Power Cost Monitor, while at the same time reducing its own residential users' billing rates by 8% this summer.

The stock bears investigation for inclusion in a balanced portfolio. Possessing solid earnings, high customer satisfaction, and environmentally aware policies, NSTAR pays a dividend of $.325 per common share, and the company has a long, long history of paying out dividends. NSTAR has a P/E multiple slightly below industry average, and EPS slightly above industry average. The stock price has quite literally not budged since 1 January 2007, opening the year trading at $34.95, and closing the end of May at $34.85. NSTAR has annual revenues of $3.5 billion and serves 1.4 million customers in Massachusetts.

For 1Q 2007, NSTAR reported earnings of $47.8 million or EPS of $.45, up 10% from 1Q 2006. Electric sales were up 2% by volume while gas sales were up 14% by volume. NSTAR recently signed a 7-year rate agreement that will give it a large measure of earnings stability. Recently, NSTAR announced a partnership with Evergreen Solar, Inc. to provide solar generated energy as an affordable option for customers. NSTAR expects this small portion of its power generation to grow rapidly, further reducing generation costs, thus increasing the desirability of renewable energy choices for customers. NSTAR reported March 2006- 2007 EPS to be $1.96, up 8% from the previous reporting period.

This post is written as part of AOL Money & Finance's Best & Worst 2006. Gas prices got you down? Vote for Lee Raymond as the most overpaid CEO.

Lee Raymond retired as CEO of ExxonMobil Corporation (NYSE:XOM) at the end of 2005, and in April it was announced that he had received one of the most generous retirement packages in history, nearly $400 million, including stock options and other perks, this at a time when Americans were paying record fuel prices and Exxon had made the biggest profit of any company ever -- $36 billion.

Exxon defends Raymond's compensation, pointing out that during the years he ran the company, Exxon became the largest oil company in the world, as well as one of the world's most powerful companies. The stock price soared 500 percent during that time.

Raymond began his career at Exxon as a research engineer after receiving his PhD in chemical engineering from the University of Minnesota in 1963. He worked his way up the proverbial ladder with innovative moves that cut costs and increased profits. He defended Exxon against environmentalists and human rights activists, while denying the viability of renewable energy sources and the human component of global warming.

He was president of Exxon in 1989 during the Exxon Valdez disaster, when the damaged tanker spilled an estimated 30 million gallons of crude oil off the Alaskan coast and devastated wildlife. As CEO he oversaw the merger of Exxon and Mobil -- gains from the merger showed that early predictions had underestimated the potential growth.

Exxon claims that his retirement is in accordance with its standard pension plan, based on his forty plus years of service and his salary at retirement, about $51 million.

GE will fund a wind farming project in Hawaii under its unit GE Energy Financial Services. GE maintains that renewable energy is an essential component of the "world energy mix." I stumbled across GE's in-house Global Research blog. According to a post written early this year, the company claimed that since obtaining "Enron's wind turbine assets in 2002, GE has presided over significant growth in this business." Around the same time, the independently-run EnergyBlog noted that "wind energy costs drop below conventional sources in some markets."

Ge will supply 14 of its 1.5-MW wind turbines which will be place at the south tip of the big island. Project managers estimate the farm will produce energy equivalent to power 10,000 homes.

It looks like investor demand for the VeraSun Energy IPO is surging. Last Friday, the company juiced-up the terms on the deal for the second time. Now, the company intends to issue 18.2 million shares (up from 17.25 million shares) at a price range of $21-$22 (up from $18-$20).

The deal shows that Wall Street considers renewable energy to be, well, mainstream.  More importantly, it's a way to make a lot of money.

You see, VeraSun is the #2 ethanol producer in the US (the #1 is Archer Daniels Midland). Ethanol increases octane, as well as lowers pollution levels. Interestingly enough, Congress passed a bill that is now requiring renewable fuels like ethanol.