Harvey Shows Need For Investment In Energy Infrastructure

Someone once asked me at an energy conference "what do you think of U.S. energy policy?" My response was "do we have one?" Unfortunately, it takes a disaster of the scale of Hurricane Harvey to put that lack of governmental direction in the forefront of investors' minds. We've had a nice reversal on crude oil today, and I'm feeling good about my "counter-Goldman" positive call on exploration and production stocks in my column yesterday, especially my recommendation of Denbury Resources stock, which has jumped 12% in this morning's trading. Taking the opposite trade versus an ill-timed Goldman research call is lucrative, but it is not the endgame for energy investing. At some point the structure of the energy markets needs to change, and that will determine the future winners among energy players, not just day-to-day trading stars.