In this issue:
 
 Our year-end review issue features an in-depth assessment of the overhaul that turned the tide in The Energy Strategist portfolios last winter. We did well in a lot of ways and the portfolio is well positioned for what may prove a volatile 2014.   

The year ahead could prove especially profitable for some of the higher-yielding portfolio names that lagged the great bull market of 2013. But the most dynamic shale drillers and our favorite energy infrastructure play should also do well, given a forecast for relatively stable commodity prices in our 2014 preview.

Domestic drillers had a landmark year, and the revival of the the US land-based oil industry is our pick for the past year’s top story. The struggles of coal and alternative energy also made the list alongside environmental controversies surrounding the proposed Keystone XL pipeline and expanded drilling in the Arctic.

Finally, the latest chat followup looks at the prospects of Apache, Ensco and Cimarex. We look forward to more productive exchanges with readers next year. Happy Holidays.  

Commodity Update

The price of West Texas Intermediate (WTI) is closing out the year with a bang, trading Tuesday at $99.14/bbl, (up $0.46/bbl from two weeks ago). Brent traded up as well to $111.92, a gain of $2.54/bbl from our last issue. The front-month contract for natural gas traded Tuesday at $4.43/MMBtu, up another 18 cents over the past two weeks. The Brent-WTI spread widened to $12.78/bbl from two weeks ago, when it was at $10.70/bbl. It should turn out to be a very good quarter for refiners, especially relative to Q3.

In Other News

• Eagle Rock Energy Partners (Nasdaq: EROC) may have finally turned the corner after a very poor year. The market is responding favorably to news that the partnership has agreed to sell its midstream business to Regency Energy Partners (NYSE: RGP) for $1.3 billion.

• ConocoPhillips (NYSE: COP) has requested approval from the US government to resume exports of liquefied natural gas (LNG) from its Kenai Peninsula plant in Alaska. This would make it the only operating LNG export facility in the US until Cheniere Energy Partners (NYSE: CQP) begins exporting from its Sabine Pass LNG export terminal in 2016.

• Advanced biofuel maker KiOR (Nasdaq: KIOR) announced record quarterly production from its Columbus, Mississippi, facility, while also warning that financial results will be hurt by low prices for biofuel credits (RINs).

• A judge ruled that Anadarko Petroleum (NYSE: APC) is responsible for at least $5 billion and perhaps up to $14 billion of cleanup costs related to Tronox (NYSE: TROX), which was spun out of Kerr-McGee in 2005.

• Shell (NYSE: RDS.A) announced it will sell off up to $30 billion of assets next year after weak refining margins and oil theft in Nigeria caused a sharp drop in profits.

• Credit Suisse announced its Top Energy Stock Picks for 2014, which include portfolio holdings Chevron (NYSE: CVX), Tesoro (NYSE: TSO), and EOG Resources (NYSE: EOG).