Energy Stocks with Room to Run

With oil prices up nearly 85% from a year ago, are there any good sector plays left? Yes, especially among production and oilfield service outfits

The surge in energy prices has been so rapid and relentless—particularly since the beginning of this year —that investors may think it's too late to grab a piece of the action. Of course, they may have thought that when oil was at $80, or $100, or $125 a barrel. But now many forecasters think that oil prices could be headed higher than the low $130s reached in the past week—maybe toward $200 a barrel over the next year. On May 16, Goldman Sachs (GS) raised its average price estimate for the benchmark West Texas Intermediate grade of crude for the second half of 2008 to $141 from $107 per barrel.

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