Coming into the end of the year, I challenged my readers to help me find great stock ideas using what I think will be one of the strongest energy trends of 2014; the relative premium for global crudes that I think will be realized compared to US crude. It's time for me to reveal the stock I've come up with based on this thesis: BP.
Now, I have always felt that making 'best stock' recommendations is less about actually finding a stock to hold for a full 12-month period and checking the results come December. It is much more about the process of translating macro energy ideas into investable ones, and that's the point of choosing BP.
What I hoped to get from readers were their own ideas of exploration and production companies that could leverage a global crude price that I believe will average above $15 and likely touch $25 in the coming year. Obviously, a higher price premium will translate into higher profits, provided the production costs and tax structures are similar. That's the reason the rush for US shale assets despite the oil price discount has been so heated; light taxes, rebates and a supportive government make the US a great place to find and produce oil and gas. Oil production got its start here in the United States, and the support for the industry has a long and deep history -- You can’t find a better place to drill for oil than here in the US.
But when premiums for global crude…