Energy demand isn’t quite what it used to be, with U.S. oil demand falling to a 16-year low in 2012 thanks to energy efficiencies.
Energy supplies are also increasingly costly to access, whether it be oil stocks like Exxon Mobil (XOM) and Chevron (CVX) drilling for deepwater finds or processing tar sands or simply forging into geopolitical hotspots like Russia or Africa.
To me, that adds up to big pressures on Big Oil over the next few years.
I talk about this trend with Dave Asman of Fox Business in the video here, and offer up some alternatives via deepwater service stocks Seadrill (SDRL) and Transocean (RIG) as a way to tap into this trend — and bigger dividends as a result.
You can also read more about my thoughts on Big Oil, Exxon and other stocks in the space via my recent MarketWatch column on the topic.
Jeff Reeves is the editor of InvestorPlace.com and the author of The Frugal Investor’s Guide to Finding Great Stocks. As of this writing, he did not hold a position in any of the aforementioned securities. Write him at firstname.lastname@example.org or follow him on Twitter via @JeffReevesIP.