The price of oil has risen more than 60% since 2004, and I believe that consumers waiting for a permanent price drop have lost their senses. Look no farther than Asia for the explanation. By 2010, China is expected to have more than 250 million middle-class citizens, who will whiz from Shanghai to Beijing to Chengdu in automobiles (let's hope they're more fuel-efficient than the guzzlers we've been driving).
Someday America will not be the largest energy consumer in the world, and on that day oil prices will be far higher. For further context, please note that, adjusted for inflation, oil prices today are actually lower than they were in 1981. Moreover, gasoline prices around the world are on average twice what they are in the U.S. As entrepreneurial capitalism continues to cover the globe, the demand for petroleum will only rise.
Unit Corp. (UNT), a contract driller operating primarily in Oklahoma and Texas, is perfectly situated for sustained growth. It is one of the 10 most highly ranked stocks by our Motley Fool community. Here again, I think you're looking at more than a double over the next five years.