ConocoPhillips (COP)

bball416 (69.39) Submitted: 9/13/06 4:51 PM : Start Price: $57.03 COP Score: 31.40

COP has a 20% interest in russia's LUKOIL. Lukoil has hydrocarbon reserves second only to exxon mobile with a market cap of only 80 billion. As far as proven oil reserves they actually exceed exxon mobile. These proven reserves have risen more than 5% anually.

Conoco itself has massive refining capacity at a time when there is a huge refining shortage. New refinaries cost well over 3 billion, take years to construct, and take a lot of regulatory approval. It is very unlikely that any new refinaries will be constructed in the united states in the nerm term future.

Conoco also holds a 10% interest in the leading oil sand reserves in canada. If canada's sand oil reserves prove viable it will leave them with 150 billion barrels of reserves and make them the next saudi arabia to the north.

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