Are You READY For The $150 Oil BOOM ?

~To play the coming rally in crude oil, focus on three broad groups:
oil services, oilfield equipment and producers with growth potential.

~Oil services and equipment stocks are entering the sweet spot of
their cycle. North American oil drilling activity is soaring as
producers target oil-rich shale deposits such as the Bakken of
North Dakota and the Eagle Ford in south Texas. Oil services
firms with the technology to produce these plays have raised their
prices for certain key activities by as much as 50 percent since
April alone. Producers are reporting waits of 60 to 90 days to
have their wells completedbecause there simply isn't enough
capacity to meet demand. North American profit margins for the
best oil services stocks are soaring.

~The international up-cycle is just getting started. Some markets
such as Brazil are already seeing a strong jump in spending and
activity, though other markets continue to lag. But with oil prices
on the rise, spending is starting to accelerate; international profit
margins for the oil services firms are set to rise early in the New
Year. With both US and international markets growing, the best in
the sector are already rising in anticipation of that turn.

~The last major oil services up-cycle lasted between 2004 and 2008;
over that time many of the best-placed oil services and equipment
names rose five-fold or more. Similar gains are possible this cycle,
and the time to buy is now.

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