All Pumped Up

In the summer of 2005, soaring energy costs were front-page news. Now in 2007, we have higher oli prices - but there has been no outcry.

This lack of opposition indicates that energy prices may continue to climb. However, big name oil stocks still trail the S&P 500 in year-to-date performance. The S&P Energy Index's price/earnings ratio is 12, well below its 10-year average of 19.

Those investors who are interested in the energy sector as an investment should take note of offshore drillers who now offer an appealing combination of earnings growth prospects and low valuations.

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